Infosys is seeking to renegotiate and enhance its hardware and software business with Daimler by introducing a new revenue stream focused on artificial intelligence (AI). The Bengaluru-based company aims to extend its existing eight-year contract, originally signed in December 2020, which is valued at over $3 billion. This initiative is part of the Daimler project, known internally as the ‘twice as fast program,’ where Infosys provides solutions across six key areas: network, security, SAP basis, data center, workplace, and operations. This project is projected to generate an average annual revenue of $400 million, with the data center segment contributing $160 million and the remaining software and hardware components accounting for $240 million.
Infosys is looking to add an AI component to the new deal and extend the contract duration from 2028 to 2029. An executive noted that discussions are in the early stages, but both companies are optimistic about finalizing the contract by next year. However, the specific additional revenue from this renewal has not been confirmed. Daimler, which split into Mercedes-Benz Group and Daimler Trucks in December 2021, continues to engage with Infosys, which remains one of its three largest clients, alongside Apple Inc. and JPMorgan Chase & Co. The contracts with Daimler and Vanguard, an American investment management firm, are among Infosys’s largest, each valued at over $1 billion.
