TCS has been meticulous about avoiding buying a pig in a poke. Because MHP is highly exposed to the automotive sector, its order books have taken a hit as German premium manufacturers aggressively slashed their external consulting budgets. Consequently, MHP’s revenue dropped from €828 million ($1 billion) in 2024 to €742 million ($866 million) in 2025.
Smart Structural Safeguards
To hedge its downside, TCS has engineered a clever structural safeguard. Given that roughly 40% of MHP’s revenue historically stemmed directly from Porsche, TCS conditionalized the acquisition on a mandatory five-year service agreement. By locking in €1.25 billion in guaranteed future business from Porsche, TCS has effectively eliminated the risk of these core revenues evaporating post-closing.
For TCS, this represents a golden ticket bypassing the tough market barriers that have long plagued Indian offshore IT firms in Europe. Continental Europe—and Germany in particular—has historically proven to be difficult terrain due to deep, cultural, and long-standing ties between domestic automakers and local consultancies. Now, TCS receives an immediate injection of German consulting presence and established market trust. Furthermore, they gain direct access to MHP’s impressive network of over 300 clients across the manufacturing and mobility sectors, including heavyweights under the Volkswagen Group umbrella.
At the Heart of the Automotive Digital Ecosystem
Yet, as noted in the introduction, this acquisition is not just about market share, but very much about core competence. Over the past few decades, MHP has evolved from a traditional SAP implementation partner into a high-tech industrial consultancy whose expertise spans the entire digital value chain.
While the company’s roots and heavy-hitting competence certainly lie within ERP systems and PLM-side integration, MHP navigates seamlessly between three of the market’s absolute largest platforms within the PLM environment:
- SAP (S/4HANA & PLM/SCM): Serving as the foundation of the business, MHP utilizes this to manage complex component data, variant management, and factory controls.
MHP’s history is inextricably linked to SAP, having been founded in 1996 specifically as an SAP implementation partner. Within Porsche, MHP does not operate as an ordinary contractor; instead, they serve as the chief architect and executioner of Porsche’s global enterprise software strategy. Even after the recent 2026 acquisition by TCS, MHP remains the primary driver behind Porsche’s deep internal process modernization. Their work with SAP inside the luxury automaker spans several critical, high-scale pillars; like Project PACE (The Massive S/4HANA Migration) which is MHP’s crown jewel implementation at Porsche.
Another interesting aspect of what MHP does with SAP solutions is about Closed-Loop Supply Chain and Production Planning. Vehicles built by Porsche are highly customized, meaning their assembly lines require flawless, real-time synchronization between part suppliers and factory robotics. For example MHP connects three distinct operational layers within Porsche using SAP software: Strategic (Integrated Business Planning/IBP), Operational (Production Planning and Detailed Scheduling/PP-DS), and Execution (Digital Manufacturing/DM). - Siemens Digital Industries (Teamcenter): This is the strategic PLM system dominating the automotive industry. MHP specializes in stitching Teamcenter together with Manufacturing Execution Systems (MES) to create a comprehensive digital twin of vehicles. MHP does not simply ”use” Siemens Teamcenter as an internal end-user; rather, they deploy, configure, and orchestrate it as a core architectural pillar for their enterprise automotive and manufacturing clients.
As companies look to modernize their heavy IT infrastructure, MHP acts as a deployment partner for Teamcenter X, Siemens’ Software-as-a-Service (SaaS) cloud offering.
Moreover, MHP use both Siemens Polarion which remains deeply embedded in the foundational engineering departments of many traditional OEMs. Since MHP is one of Europe’s premier partners for the Siemens Teamcenter ecosystem, their mastery of Polarion is a natural extension of their PLM-ALM integration portfolio. - PTC (Windchill): Even as Siemens PLM secures strong positions in MHP and software management for Software-Defined Vehicle (SDV) development, PLM competitor PTC remains a tough player in the ALM space—most notably trough its Codebeamer solution. MHP leverages this platform to connect mechanical design with software development (ALM), as well as IoT solutions on the factory floor. PTC secured a deal establishing Codebeamer as a standardized ALM platform across the entire Volkswagen Group, which includes brands like Porsche, Audi, Skoda, and SEAT. The platform is implemented to manage complex requirements traceability, testing, and compliance for software-driven vehicle architectures.
MHP’s architectural agility is highlighted by their dual mastery of Siemens Polarion and PTC Codebeamer. Rather than forcing a single ecosystem on their clients, MHP bridges the industry’s divide—leveraging Polarion for complex hardware-software compliance while simultaneously deploying Codebeamer to fuel the high-speed, variant-heavy demands of modern agile SDV platforms. - Microsoft (Azure AI Integration): Porsche and sister brands benefit from ongoing joint initiatives between PTC, Microsoft, and the Volkswagen Group to integrate Azure AI capabilities and developer copilots into the Codebeamer environment.
Generally MHP’s true strength lies in its ability to bridge these systems and orchestrate the so-called ”digital thread.” By leveraging standardized integrations, they ensure that modifications in engineers’ CAD drawings within Siemens Teamcenter are translated in real time into updated material numbers and purchase orders inside SAP S/4HANA.
From Blueprint to Factory Floor
This seamless data integration extends all the way to the physical factory floor through MHP’s own proprietary software solutions. A prime example is Fleet Executer, a centralized control platform for autonomous, driverless forklift fleets (AGVs) in smart factories. When SAP schedules a production order, a transport request is dispatched to Fleet Executer, whose AI algorithms guide the automated guided vehicles to deliver the correct car part to the assembly line at the exact second required (Just-in-Sequence). This is complemented by advanced real-time tools such as paint_it and bolt_it, which automate quality control during painting and bolting processes.
By merging MHP’s niche, operational-level production technology with TCS’s global muscle and delivery capacity in artificial intelligence, TCS moves up the value chain. The Indian firm is transformed from a traditional vendor of backend IT into a strategic premium partner capable of driving the software-defined industrial evolution.
The roadmap ahead is crystal clear: together, TCS and MHP will now roll out these advanced mobility and AI solutions to other major players across the aerospace, defense, and industrial sectors throughout Europe.
