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Why TCS bought Porsche’s struggling IT unit
TCS paid €320 million to acquire Porsche’s IT consulting arm MHP, and separately secured a five-year, €1.25 billion contract with the German luxury carmaker.
What TCS gets: The transaction gives TCS a ready-made foothold in Germany’s automotive and industrial consulting market, plus over 4,500 specialised employees and access to clients across Germany, Romania, UK, USA, India and Mexico.
But, there’s a catch! Industry watchers called MHP a depreciating asset.
Its revenue fell from €830 million in CY24 to about €742 million in CY25, while almost 30-40% of it is tied to Porsche.
Beyond the numbers: The Porsche contract makes the deal easier to defend. But TCS’ real test is whether it can turn MHP from a Porsche-heavy business into a broader European growth engine.
Driving synergies: TCS can bring its scale, AI and automation capabilities to improve MHP’s cost structure and push further upstream into consulting, engineering and software-defined vehicles – areas dominated by rivals such as Accenture and Capgemini.
Meanwhile, industry experts raised a major concern warning that smooth cultural integration between the two companies may be a challenge.
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