Home / Companies / News /  Infosys signs outsourcing contract with Toyota Motor

Bangalore:Infosys Ltd has entered into a multi-year outsourcing contract with Toyota Motor Corp.’s European business, as the Japanese auto maker looks to cut costs amid a slump in vehicle sales in Europe, one of its biggest markets.

The deal value was not disclosed.

This is the second major contract that Infosys, India’s second-largest software exporter, has signed in the European automobile sector after the five-year deal it won from Bayerische Motoren Werke AG (BMW) earlier this year.

As part of the contract, Infosys will provide application management services across Toyota’s European operations to help it reduce costs.

In Europe, demand for automobiles is at its lowest in two decades, and sales of Toyota vehicles in the June quarter were nearly unchanged from a year earlier at 215,734 units. Toyota is also facing declining sales in its domestic Japan market as well as its biggest market, North America.

“Moving to a managed service model for our application support will help us track and improve service levels across the portfolio," said Pierre Masai, chief information officer at Toyota Motor Europe. “Additionally, standardization, Global Delivery Model coupled with scale, productivity benefits and continuous improvements will help optimize application management costs."

Infosys already has a separate contract with Toyota Motor Europe to support its operations in the continent, it said in a statement on Thursday.

“Toyota Motor Europe has a wide range of applications across its operations in Europe, so effective support of these is a crucial part of the IT operations," said Nitesh Bansal, vice-president and regional head of manufacturing in Europe. “Bringing consistency and predictability to the management of these will help Toyota reduce costs as well as improve service levels for its customers and employees."

Infosys shares were nearly unchanged at 3,031.50 each at 11.49am on BSE, while the Sensex was 1.36% higher at 19,783.12 points.

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