India’s Tata Consultancy Services (TCS) is continuing to grow its European business, signing a €320 million ($373 million) deal to buy Porsche’s IT arm, in exchange for a €1.25 billion AI contract ($1.46 billion).

Porsche will finalise the five-year deal for consulting support after TCS acquires the German automakers IT business MHP Management. The deal will see the consultancy help Porsche roll out AI across its operations and deliver “software-defined mobility platforms.”

TCS CEO K. Krithivasan said: “As AI, software, and data redefine the automotive industry, this partnership brings together TCS’ capabilities in AI, engineering, technology and business transformation with MHP’s strong automotive consulting expertise.”

MHP is an IT consultancy providing services around AI, SAP, cloud transformations and supply chain digitalisation, with a focus on automotive, manufacturing, defence and public sector customers.

Consulting’s AI pivot

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