German luxury carmaker Porsche has entered into a five-year strategic partnership worth €1.25 billion (around US$1.46 billion) with Indian IT giant Tata Consultancy Services (TCS), as the automaker moves to expand the use of artificial intelligence across its business.
Under the agreement, AI technology will be deployed across Porsche’s engineering, manufacturing, operations and customer experience functions.
The partnership will also focus on developing automotive technologies and software-defined mobility platforms.
As part of the wider agreement, TCS will acquire Porsche’s automotive and IT consulting subsidiary MHP for an enterprise value of €320 million (around US$373 million). The acquisition is expected to be completed within three to four months.
MHP specialises in automotive and industrial consulting, including business consulting and software-defined mobility.
The agreement comes as Porsche and its parent Volkswagen Group pursue restructuring and cost-cutting measures amid increasing competition from Chinese automakers, tariffs and the high costs associated with the transition to electric vehicles.
The deal also represents a significant expansion for TCS as artificial intelligence continues to reshape the global IT outsourcing industry. (Newswire)