TCS To Acquire Porsche’s IT consulting Arm MHP In Five-Year Deal, Expand European Automotive Business

It will combine MHP’s automotive consulting and implementation expertise with a new AI Mobility Center of Excellence to scale AI across Porsche’s value chain.

Tata Consultancy Services (TCS), through its subsidiary, has entered into an agreement to acquire 100 percent of MHP Management- und IT-Beratung GmbH (MHP), Porsche AG’s Germany-based management and IT consulting subsidiary.

This is part of a five-year strategic partnership and will combine TCS’ AI and engineering capabilities with MHP’s automotive consulting and implementation expertise.

The proposed acquisition and partnership are subject to regulatory approvals.

Porsche CEO Michael Leiters said the transfer of MHP to TCS will allow Porsche to focus on its core business while gaining TCS as a strategic technology partner.

As part of the deal, TCS will establish a dedicated AI Mobility Center of Excellence (CoE) for Porsche.

The CoE will focus on industrializing AI across manufacturing, engineering, operations and customer experience, helping convert AI concepts into secure and scalable production deployments.

For TCS, the deal provides both a long-term customer relationship and an expanded automotive capability through MHP, which has expertise in business transformation, AI, SAP, manufacturing digitalization and connected mobility.

MHP’s experience in automotive and industrial consulting and implementation will complement TCS’ capabilities in AI, product engineering, technology and business transformation.

The proposed acquisition is expected to strengthen TCS’ position in Germany and the wider European automotive and industrial market.

MHP has a track record of working on complex automotive and industrial transformation programs, giving TCS additional domain expertise as automotive companies increase investment in software, data and AI.

The combination also allows TCS to take a more vertical approach to AI services, with the AI Mobility CoE expected to develop use cases around the specific requirements of the mobility sector rather than treating AI as a horizontal technology deployment.

TCS and Porsche will work together to embed AI across intelligent manufacturing, engineering, operations and customer experience.

The partnership will leverage Porsche’s automotive engineering and brand expertise alongside TCS’ technology and transformation capabilities.

Five-Year Deal Creates Long-Term AI Services Platform

The five-year agreement provides the foundation for TCS and Porsche to scale AI transformation and deliver business outcomes across the automaker’s organization and wider mobility ecosystem.

The partnership comes as automotive companies bring together software, data and AI across vehicle development, manufacturing and customer-facing operations.

For TCS, the deal extends its role from a technology services provider into a broader AI and transformation partner with deeper industry capabilities.

The proposed acquisition of MHP strengthens that proposition by adding an established automotive consulting and implementation business to TCS’ global technology and engineering scale.

TCS CEO and Managing Director K. Krithivasan said the partnership combines TCS’ capabilities in AI, engineering, technology and business transformation with MHP’s automotive consulting expertise to “industrialize AI at scale” for Porsche.

The deal highlights a shift in enterprise AI services, where technology providers are combining platforms and engineering capabilities with deep industry expertise to move AI deployments from individual use cases into production environments.

This article originally appeared on CRN’s sister site CRN India.