Under the agreement, Infosys will develop applications to support multiple domains, including marketing and sales, customer service, manufacturing, product development, and corporate functions, the IT major said in a statement on Monday.
Infosys has already been supporting Volvo Cars since 2010 to rationalise and integrate its enterprise systems. No financial details were disclosed.
Infosys will also deploy best practices specifically related to business process harmonisation and delivery excellence across transformation projects, it added.
"We will be a strategic supplier for Volvo Cars to deliver excellence and innovation to transform their IT landscape to a modern architecture. We are very pleased to collaborate with Volvo Cars in their strategic journey," Infosys' vice president - manufacturing (Europe) Nitesh Bansal said.
The agreement also reflects Infosys' strategic focus on the Nordic market and strengthens the company's presence in Sweden, Mr Bansal added.