HCL Tech acquires Volvo Group's external IT business

Software services provider HCL Technologies (HCL) said on Tuesday that it has acquired the external IT business of commercial vehicles manufacturers, Volvo Group.

"HCL has also acquired Volvo's external IT business, adding 40 new customers from the Nordics and France to its portfolio, further enhancing its market leading position in these regions," the company said in a statement here on Tuesday.

HCL has also signed an IT outsourcing deal with the Volvo Group.

The company, however, declined to comment on the size of the deal.

"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," said HCL president and CEO Anant Gupta.

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

"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," said Volvo Group's chief information officer and Volvo IT president Olle Högblom.

Volvo IT customers will 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, the statement added.

The tieup will help HCL in creating 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.

"HCL will deliver on a technology transformation roadmap that spans over 3,500 applications, 20 plus data centres, over 11,000 servers, 12 petabytes of storage, 20,000 plus MIPS of mainframe capacity and over 15,000 network devices," the statement said.

"As part of this roadmap, HCL will also provide over 65,000 Volvo end users with access to productivity and user enablement solutions, such as Microsoft Office 365," it added.