Why TCS bought Porsche\u2019s struggling IT unit
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\n P.S.: Tune into Tech3 Podcast, your daily dose of tech and startup insights. Monday to Friday! Check it out on Spotify<\/a> or Apple Podcasts<\/a>. And don\u2019t forget to sign up to The AI Edge<\/a>, our weekly newsletter on all things artificial intelligence (AI).\n <\/p>\n \n Why TCS bought Porsche\u2019s struggling IT unit\n <\/p>\n \n TCS paid \u20ac320 million to acquire Porsche\u2019s IT consulting arm MHP, and separately secured a five-year, \u20ac1.25 billion contract with the German luxury carmaker.\n <\/p>\n \n What TCS gets: The transaction gives TCS a ready-made foothold in Germany\u2019s automotive and industrial consulting market, plus over 4,500 specialised employees and access to clients across Germany, Romania, UK, USA, India and Mexico.\n <\/p>\n \n But, there\u2019s a catch! Industry watchers called MHP a depreciating asset.\n <\/p>\n Its revenue fell from \u20ac830 million in CY24 to about \u20ac742 million in CY25, while almost 30-40% of it is tied to Porsche.<\/p>\n \n Beyond the numbers: The Porsche contract makes the deal easier to defend. But TCS\u2019 real test is whether it can turn MHP from a Porsche-heavy business into a broader European growth engine.\n <\/p>\n \n Driving synergies: TCS can bring its scale, AI and automation capabilities to improve MHP\u2019s cost structure and push further upstream into consulting, engineering and software-defined vehicles \u2013\u00a0 areas dominated by rivals such as Accenture and Capgemini.\n <\/p>\n Meanwhile, industry experts raised a major concern warning that smooth cultural integration between the two companies may be a challenge.<\/p>\n