HCLTech, an IT services firm, is poised to defend its $1 billion contract with Volvo Group, a Swedish truck manufacturer, which is currently up for renewal, as reported by the Times of India. Infosys is reportedly interested in this lucrative contract.
Last week, representatives from both companies convened at Volvo’s headquarters in Gothenburg, Sweden, to engage in the final stages of negotiations.
Securing this contract would significantly benefit the winning company, especially following a period of at least a quarter without major deals for Tier-I Indian IT firms.
Leading HCLTech’s negotiations is Ashish Kumar Gupta, the Head for EMEA and corporate Vice President, who played a crucial role in securing the original deal in 2016.
The initial agreement involved HCL providing a comprehensive technology transformation strategy that included over 3,500 applications, more than 20 data centers, 11,000 servers, and upwards of 15,000 network devices, according to the report.
Additionally, HCLTech established an automotive center of excellence in Gothenburg, which is equipped with capabilities in manufacturing IT, research and development, as well as digital and IoT functionalities to serve its global clients.
HCLTech stated to the Times of India, “As a policy, we do not comment on the specifics of client agreements.”
In 2016, HCL acquired Volvo Group’s external operations for $138 million, a move projected to generate $1 billion in revenue over five years. The total value of acquiring the IT operations and securing a five-year outsourcing contract from Volvo Group was estimated to yield HCL approximately $2 billion in revenue over the subsequent five years.
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