TCS secures €1.25b strategic deal with Porsche

Tata Consultancy Services (TCS), India's largest IT services firm, is acquiring MHP Management- und IT-Beratung GmbH (MHP), Porsche's IT services and consulting subsidiary, for 320 million euros. TCS has also inked a five-year contract worth 1.25 billion euros with MHP. MHP, with over 4,500 employees, specializes in business consulting, digital transformation, artificial intelligence, SAP transformation, manufacturing digitalization, and connected and software-defined mobility. MHP operates in Germany, Romania, the UK, the US, India, and Mexico.

The acquisition will cement a long-term AI transformation partnership between TCS and Porsche, as part of a €1 billion deal. The collaboration aims to scale AI across Porsche's engineering, manufacturing, operations, customer experience, and enterprise transformation initiatives. It will also focus on next-generation automotive technology services and software-defined mobility platforms.

TCS CEO K Krithivasan expressed excitement about partnering with Porsche in its transformation journey. He highlighted how AI, software, and data are reshaping the automotive industry, and this partnership brings together TCS' AI, engineering, technology, and business transformation capabilities with MHP's strong automotive consulting expertise.

As part of the agreement, TCS will set up an AI Mobility Centre of Excellence (CoE) to scale AI use cases across key mobility technologies. The CoE will transform AI concepts into secure, scalable solutions to enhance development speed, operational resilience, and competitiveness across Porsche's products and value chain. Additionally, TCS' expertise will form the basis for scaling AI transformation and delivering business outcomes across Porsche's organization and the wider mobility ecosystem.

Porsche AG CEO Michael Leiters emphasized the combined strength of Porsche's automotive expertise and TCS' digital technology and AI capabilities. He stated that this partnership will further bolster their innovative power, improve efficiency, and enhance competitiveness in the data and software-driven mobility world.