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NEW DELHI: German automotive major Daimler AG and Infosys Ltd has entered a long-term strategic partnership for a technology-driven IT infrastructure transformation.

As part of the deal, after the receipt of regulatory approvals, Daimler AG will transform its IT operating model and infrastructure landscape across workplace services, service desk, data centre, networks and SAP Basis, together with Infosys.

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Infosys didn't disclose financial details of the deal but it is estimated at over a billion dollars, according to a person.

The collaboration will allow Daimler to strengthen its IT capabilities, and Infosys, its automotive expertise.

As a part of this partnership, automotive IT infrastructure experts based out of Germany, Europe, US and the Asia Pacific region will transition from Daimler AG to Infosys.

The transfer will also enable Infosys to bolster and grow its automotive business, while offering Daimler employees strong prospects for long-term career growth and development.

“As we embark on this journey, we will bring together capabilities, ecosystems and a hybrid cloud infrastructure that will shape new experiences for Daimler AG and the industry at large. Infosys has deep expertise in helping our clients across the globe navigate their digital journeys, and as part of this strategic partnership, we look forward to setting a new standard for the automotive industry," said Salil Parekh, chief executive officer, Infosys.

In July, Infosys had won a multi-year digital transformation deal from US investment firm Vanguard. The deal, pegged at about $1.5 billion, is one of the largest ever for the company and an indication that digital technology spending is on the rise.

“Daimler will take three steps at once to transform its IT infrastructure: consolidation, scaling and modernization. We need to think infrastructure beyond the size of our company. With Infosys we found a partner to scale, to innovate and to speed up," said Jan Brecht, Chief Information Officer, Daimler and Mercedes-Benz.

Infosys's deal momentum has been steady and strong during the third quarter ending in December, typically a seasonally weak period for IT companies, Parekh had said in an event last week.

The quarter is considered seasonally weak due to the holiday season in key geographies such as the US and Europe.

The company’s digital business has grown 25.4% since last year and contributed 47.3% to the revenue for the second quarter ended September. Parekh said the contribution could increase to 50% in the next few quarters.

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