TCS buys Porsche's MHP for €320m, creates AI mobility centre
Tata Consultancy Services (TCS) just bought Porsche's IT consulting arm, MHP, for €320 million.
The big plan? Launch an AI Mobility Centre of Excellence that blends MHP's digital expertise with TCS's AI skills, hoping to shake up how European carmakers build next-generation, software-driven vehicles.
TCS expects billion-dollar unit, €1.25bn commitment
Porsche will be the first client, but TCS CEO & Managing Director of TCS K Krithivasan is eyeing much bigger things.
He thinks this new unit could become a billion-dollar business in about three years.
The deal comes with a 1.25 billion-euro services commitment over five years and brings 4,000-4,500 onsite employees on board.
While there might be some short-term bumps as everyone settles in, TCS expects this move will open doors across Europe's auto industry and pay off big in the long run.