Volvo sold IT-Business to Indians for $136 million

2016: HCL sold to Volvo IT-Business

In the middle of February, 2016 it became known that the Swedish carmaker Volvo Group sells the IT-Business to one of the technology outsourcers, largest in India — HCL Technologies. Also the companies signed the outsourcing agreement.

According to the statement of HCL, the company buys the division which is engaged in service of IT of third-party clients from Volvo (all them there are about 40 in 11 countries of the world). All contracts under them will pass HCL, as well as about 2.5 thousand. IT specialists of car maker.

Volvo sold IT-Business to Indians for $136 million

The transaction is going to be closed by the end of March, 2016, its cost will be 1.13 billion Swedish kronur ($136 million). Money will be paid by cash. In 2015 IT-Business generated Volvo revenue in the amount of 1.69 billion kroner ($203.4 million) which for 8% exceeds an indicator of year prescription.

Sources of the Indian agency PTI say that purchase of IT-Business of Volvo will provide HCL with additional orders for the amount about $200 million a year and also revenue in $1.8 billion within five years. HCL did not begin to comment on these amounts at the request of the Indian media.^[1]

In addition to sale of the IT department, Volvo entrusted HCL service of the technology resources which include more than 3500 applications, 20 data centers, 11 thousand servers, 12 PBytes of disk space, 15 thousand network devices and mainframes with a gross performance of 20 thousand MIPS.

Within five years the Indian company will support IT infrastructure of Volvo and a software ecosystem and also to provide transition to cloud services, automation and analytics of Big Data. Also HCL will provide to clients of the auto giant access to different services, including Office 365, and will create on the basis of knowledge and technology assets of the Volvo Competence Center (Centre of Excellence) in Gothenburg which will service clients of HCL from production and automobile the industries.

As the vice president of the Scandinavian division of HCL Pankaj Tagra reported on February 16, 2016 CNBC-TV18 TV channel, the autosorsingovy contract with Volvo is the largest similar transaction in the world market in the last two years.^[2]

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