Infosys at the forefront of next-gen automotive tech with its in-tech acquisition

Growing urban populations and congestion in urban regions are increasing and will soon peak. This is expected to drive the demand for integrated and multimodal on-demand transportation services, which in turn will lead to growth in the mobility sector that provides infrastructure for all modes of transportation.

Government agencies and original equipment manufacturers (OEM) are prioritizing deploying mobility solutions to enable people to travel from point A to point B faster and safely. Mobility solutions have made significant technological advancements in connected, autonomous, shared, and electric mobility (known as CASE). The automotive industry has made significant digitalization efforts, and the rail industry has done the same to make train travel smart and efficient for mobility.

In particular, automotive and rail OEMs have changed how they engineer vehicles. They are focused on adding digital technologies inside and outside of vehicles to make them more software-driven and smarter. Similarly, rail vehicle technology is becoming more flexible in building additional capacity and digitalizing its network to make its operations more efficient.

As a result, digitalization spending has intensified in the mobility space, leading industries to seek growth in adjacent markets. However, engineering research and development (ER&D) activities have significant costs and scale attached. Hence, OEMs are always looking to craft strategic partnerships on ER&D services to build scale and bring their costs down. Strategic partners can also bring specialized skills propositions and niche product engineering and technology.

Infosys’s acquisition of in-tech, an engineering R&D (ER&D) service provider, will strengthen the services and capabilities it offers in the mobility space. The acquisition fits Infosys’s strategy to localize operations in the European market by expanding its footprint in Germany—the largest global automotive market— acquisition of local talent and establishing operations near leading OEM companies.

Strengthening its ability to meet the demands of the mobility industry, particularly automotive

Infosys is taking steps to expand its expertise in the mobility space. in-tech is a Germany-based, mobility-focused ER&D services company in the automotive, railway, and smart industries. Its automotive capabilities are focused on technologies such as advanced driver-assistance systems (ADAS), validation of automotive software and hardware, compliance testing of data communication in the vehicle and driving dynamics, system engineering for model-based systems engineering (MBSE), and user experience (UX) and design (UI) validation. in-tech develops software and designs embedded systems for seamless communication between vehicles and infrastructure while ensuring automotive systems meet safety, performance, and quality standards.

in-tech is also a member of the German Railway Industry Association (VDB) and the Bavarian Railway Technology Cluster, which will give Infosys an edge to expand its expertise in rail vehicle technology. The in-tech acquisition, combined with the AI offerings of Infosys Topaz and the semiconductor expertise of Infosys’ recent acquisition of InSemi, a leading semiconductor design and embedded services provider, will enable Infosys to enhance its speed-to-market while driving innovation in the connected, autonomous, and electric vehicle space. This will enable it to meet evolving customer demand and industry requirements.

Enhancing OEM partnerships and strengthening its geographic presence

In addition to gaining technical know-how, Infosys will be able to leverage in-tech’s established relationship with key industry OEMs. The acquisition also reinforces Infosys’ footprint in the European countries where in-tech has a presence—Germany, Austria, the UK, the Czech Republic, Spain, and Romania. Infosys also obtains a talent pool of 2,200 additional employees.

The Bottom Line: Adding in-tech’s capabilities to its strong digital engineering practice enables Infosys to drive value for clients and strengthen its domain expertise.

Adding in-tech will strengthen Infosys’ ER&D and mobility sector capabilities. The acquisition, expected to close in the first half of 2025, will enable Infosys to capitalize on its existing relationship with OEMs, leverage its ER&D expertise to strengthen its automotive capabilities and localize its operations in the European market.

Infosys should gain a competitive advantage by being closer to the manufacturers while meeting evolving consumer demand due to growing urbanization. The acquisition aligns with Infosys’ strategy to expand localization as it develops and strengthens core competencies with the goal of building scale as OEMs seek to establish deep R&D partnerships.