In 2016 Volvo agreed to outsource its external IT business and its IT
infrastructure operations to a company called HCL Technologies who is
headquartered in Noida, India. The idea was to hand off existing IT work to
HCL as a cost savings but to also use HCL’s expertise to help them grow IT
beyond their own capabilities. "I am convinced that this will benefit
personnel, suppliers and customers," says Jan Gurander, Volvo's CFO and
Acting President and CEO. (Volvo, 2015) By letting a leading technology
company take the reins on IT, Volvo has opened time, energy, and money up
to focus on other areas of their business. They are in the business to design and
build safe cars. b As technology evolves it takes a great deal of work to stay up
to date and relevant in your industry, which is how HCL has made success for
themselves, tech is all they do. The contract between the two companies will
enable Volvo to stay on the forefront of technology offering their endusers a
quality product.
This agreement benefits the companies as well as the customer base. The
customers reap the benefits of two experts doing what they know best
combined into one product. Volvo can focus on what they’re good at and save
money. HCL gets a giant account, the largest deal in Indian history, and a
chance to grow their expertise on someone else’s dime. b
References
Volvo, A. B. (2015, June 28). Volvo intends to divest external it business and
Outsource IT infrastructure operations to HCL Technologies. Volvo Intends
to Divest External IT Business and Outsource IT Infrastructure Operations to
HCL Technologies. Retrieved February 2, 2022, from
https://www.prnewswire.com/news-releases/volvo-intends-to-divest-
external-it-business-and-outsource-it-infrastructure-operations-to-hcl-
technologies-534704751.html
Walker, N. (2020, May 16). Volvo Group and HCL Technologies Partner for
a global it transformation. Manufacturing Global. Retrieved February 2, 2022,
from https://manufacturingglobal.com/technology/volvo-group-and-hcl-
technologies-partner-global-it-transformation
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