Volvo Group will also outsource its IT infrastructure operations to HCL Technologies for an undisclosed contract value for five years. The Volvo Group and HCL have signed a Letter of Intent, awaiting the signing of the final contract, Volvo Group said in a statement from Stockholm.
In India, HCL Technologies said in a filing to the BSE that it will be "acquiring from the Volvo Group its external IT business relating to provision of IT infrastructure, mainframe service and application operation services for an all cash consideration of SEK 1.1 billion (USD 138 million)".
Volvo group derived revenue of SEK 1.6 billion (USD 190 million) from external customers during the last 12 months.
HCL further said it has signed a letter on intent with the Volvo Group for undertaking its infrastructure and operation services. The total contract value which is for five yeas is not disclosed.
As part of the deal, Volvo said, "Approximately 2,600 Volvo personnel globally will be affected by the transaction. They will be given the offer to move over to HCL Technologies and will continue to work closely with their colleagues in Volvo's IT services division."
The transaction is to be closed during the second quarter of 2016 and will provide both cost savings and a capital gain, Volvo said.
HCL Technologies President and CEO Anant Gupta said the company's engagement with Volvo will give the opportunity to create additional value for 'such a forward looking organisation'.


Latest News  from Business News Desk