Info-tech

HCL Tech seals ₹895-cr deal with Volvo

Rajalakshmi S | | Updated on: Feb 16, 2016
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To buy the Swedish auto major’s external IT business

HCL Technologies on Tuesday has completed the outsourcing deal with Swedish auto major -- Volvo Group for infrastructure and application operations, making Volvo ready for the rapid advancements in business enabling technology such as cloud, automation, business intelligence and big data.

HCL also acquired Volvo’s external IT business, adding 40 new customers from Nordics and France to its portfolio, further enhancing its position in these regions, the company said.

The deal follows a Letter of Intent that was announced by Volvo Group in October that HCL will use its 21st Century Enterprise Framework to deliver on a technology transformation roadmap for optimising Volvo Group’s infrastructure and application operations.

Around 2,500 people working for the Volvo Group will transfer to HCL across 11 countries, it said.

According to sources, the deal is pegged around $138 million (around ₹895 crore).

The company said Volvo IT customers would now have the advantage of access to a broad range of differentiated global capabilities, tools and processes that integrate with technology environments at a global level.

It would also create an automotive centre of excellence in Gothenburg based on the domain expertise of the Volvo team, to serve HCL’s global automotive and manufacturing customers.

“We welcome over 40 new Volvo IT customers to the HCL client base. This addition enables HCL to achieve an even stronger presence in the Nordics and the wider European region, and accelerates our journey in these markets,” Anant Gupta, President and Chief Executive Officer, HCL Technologies, said.

“Combining the strengths of HCL with those of the transferred parts of Volvo IT will result in an organisation with formidable capabilities and an intimate understanding of Volvo Group needs and opportunities,” Olle Högblom, CIO of the Volvo Group and President of Volvo IT, said.

HCL’s shares closed at ₹819 on the BSE on Tuesday, down 0.79 per cent from the previous close.

Published on January 19, 2018

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