HR Tech transformation in the automotive sector: How global cloud platforms are rewiring workforce strategy

Why the Automotive Sector Is Rushing to Modernize HR Infrastructure

As the global automotive industry races toward electric mobility, autonomous driving, and software-defined vehicles, one often overlooked area is undergoing just as radical a transformation—human resource management. From original equipment manufacturers to aftermarket distributors, auto companies are deploying cloud-based HR systems, AI-driven talent analytics, and compliance-integrated workforce platforms to manage complexity across global operations.

This transformation isn’t cosmetic. With factories, R&D centers, and retail units spread across dozens of jurisdictions, legacy HR systems have become a liability. Today’s automotive HR leaders are demanding real-time analytics, digital onboarding, multilingual employee portals, and predictive retention tools—solutions only possible through modern cloud platforms.

According to IDC, global spending on HCM software in the automotive sector is projected to exceed $6.2 billion by 2027, driven by digitization mandates and the EV workforce transition. The implications are far-reaching: companies failing to modernize HR risk regulatory lapses, productivity bottlenecks, and disengaged talent pools in a time of acute skills shortages.

How Infosys Is Leading with Cobalt in Automotive HR Transformation

One of the most strategic deployments in recent months is Infosys‘ cloud HR solution for LKQ Europe, a top-tier distributor of aftermarket parts across 18 countries. The five-year program leveraged Infosys Cobalt, the company’s proprietary cloud ecosystem, to replace fragmented legacy HR systems with a unified, analytics-rich digital platform.

The Infosys-built solution integrates real-time workforce planning, AI-driven engagement scoring, and automated compliance workflows, helping LKQ Europe manage its pan-European workforce with greater agility and precision. It also embeds self-service capabilities, cutting administrative workloads and enabling employees to manage their own records, payroll, and career paths via mobile interfaces.

While Infosys reported FY24 revenues of $18.9 billion, the Cobalt platform is now estimated to contribute over 15% of new digital transformation contracts, with automotive being a key vertical. Analysts believe that such multi-country, compliance-first deployments reinforce Infosys’ positioning as a strategic partner—not just a system integrator—for highly regulated, globalized clients.

What SAP and Workday Are Delivering for Automotive OEMs

While Infosys specializes in delivery and transformation, enterprise software majors like SAP and Workday remain entrenched within the OEM landscape as platform vendors.

SAP SuccessFactors powers HR operations for giants like Volkswagen, BMW, and Mercedes-Benz Group, thanks to its integration with SAP ERP, robust EU compliance stack, and deep configurability. Many OEMs rely on SAP for full lifecycle workforce planning, including learning management, union labor compliance, and multilingual payroll support.

Meanwhile, Workday HCM has gained popularity among newer entrants and mobility-centric firms such as Stellantis. Its strengths include intuitive UI, built-in analytics, and AI-native modules for skills intelligence and career mobility mapping—features ideal for companies navigating the transition from ICE (internal combustion engine) to EV talent.

Workday reported $7.7 billion in revenue for FY25, with nearly $1.2 billion from manufacturing and logistics verticals. Analysts at Morgan Stanley have raised the platform’s long-term rating due to its penetration in digitally agile segments of the auto supply chain.

TCS and Oracle: Integrating HR Across Global Auto Supply Chains

Tata Consultancy Services is widely seen as the systems integrator of choice for legacy automakers and suppliers undergoing large-scale HR transformation. Its Machine First Delivery Model is used by companies like Tata Motors, Jaguar Land Rover, and Valeo, often layered atop SAP or Oracle HR backends.

TCS recently signed multi-year HR digital transformation programs across Eastern Europe and Southeast Asia, where clients seek language-localized compliance and performance management at scale. With FY24 revenue of $29 billion, TCS derives over 15% of its European revenue from manufacturing and auto engagements.

Oracle Fusion HCM, meanwhile, plays a niche but growing role. Its tight coupling with Oracle ERP appeals to finance-first auto suppliers and regional OEMs with hybrid tech stacks. Oracle’s recent product roadmap emphasizes AI-powered benefits administration, compliance automation, and secure onboarding for temporary workers—a critical use case in plant-based staffing.

Why Predictive HR Analytics Is Now Non-Negotiable

HR teams in the automotive sector are now expected to function as predictive command centers—forecasting skills gaps, modeling attrition, aligning workforce KPIs with production cycles, and ensuring regulatory adherence in real time.

Infosys has responded by integrating Infosys Topaz, its AI-native layer, into the Cobalt HR stack. This enables functions like attrition prediction models based on job history, sentiment analysis, and market benchmarks. Dynamic workforce planning tools aligned to EV ramp-up or ICE phase-out timelines are also embedded. Additionally, automated audit trails ensure companies meet GDPR, DPDP, and EU Working Time Directive requirements at all times.

Similarly, Workday and SAP now offer prebuilt AI dashboards that flag skills obsolescence, retention risks, and learning path gaps, helping HR leaders act with foresight rather than reaction.

Sentiment and Buy-Side Observations from Capital Markets

While HR tech is often underreported in earnings narratives, buy-side analysts are increasingly tracking vendor exposure to sectors like automotive, where modernization translates into multi-year, high-margin deals.

Infosys has seen institutional inflows into ESG- and digital-first portfolios, bolstered by its European HR work. TCS, though slower to highlight HR-specific wins, remains a defensive stock due to deal scale and delivery capability. Workday’s stock, listed on Nasdaq, has attracted growth investors following its success in enterprise cloud HR across manufacturing and logistics.

Sentiment around Oracle remains mixed—strong fundamentals but lagging innovation. SAP’s dual-stack complexity (SuccessFactors plus legacy SAP HCM) is seen as a constraint unless unified under RISE with SAP, the company’s transformation-as-a-service initiative.

Where Is the HR Tech Market Headed in Automotive?

Future investments in automotive HR will shift toward AI-native orchestration, carbon-integrated workforce planning, and multilingual generative agents that support frontline and deskless workers across facilities and dealerships.

Anticipated developments include ESG-linked workforce planning tools that optimize team assignments based on emissions thresholds. Real-time compliance engines will adapt HR workflows to local laws in milliseconds. HR co-pilots trained on internal policy and regulatory data will support complex decision-making. Integrated mental health, productivity, and upskilling dashboards will become visible to team leads and HR business partners.

All major vendors—Infosys, SAP, Workday, Oracle, and TCS—are positioning for this next frontier by building platform layers that blend operational HR with strategic business planning, particularly in sectors like automotive where transformation is ongoing.