HCLTech bags engineering deal from Volvo Group

Incumbent IT player HCLTech bagged an engineering services deal from Swedish truck maker Volvo Group, the third largest software services exporter announced on Thursday.

Over the past months, a likely Volvo project worth over $1 billion was in the final lap of negotiations between HCLTech and its larger rival Infosys, as per reports. However, the announced deal is likely to be much smaller in size, people aware with the development said.

“Volvo Cars has chosen HCLTech as one of its strategic suppliers for engineering services…This agreement significantly expands HCLTech’s role to cover the delivery of end-to-end engineering solutions at scale,” HCLTech said in a statement on Thursday.


Previously in 2016, HCLTech, country’s third largest IT player, had won an over $1 billion deal from Volvo Group that included acquisition of Volvo’s external IT services arm for around $138 million (then Rs 895 crore). This acquisition was estimated to deliver $1 billion in revenue over a five-year period.

Meanwhile, the second largest software services exporter Infosys engages with Polestar, a Volvo firm, on a variety of industrial engineering services.

Previously, HCLTech also set up an automotive centre of excellence in Gothenburg based on the domain expertise of the Volvo team, to serve HCLTech's global automotive and manufacturing customers.

The strategic collaboration will see the company support Volvo Cars’ engineering future ambitions from its automotive Centre of Excellence in Gothenburg, as well as its global offshore and nearshore delivery centers, HCLTech's statement on Thursday added.

“We are proud to broaden our relationship with Volvo Cars at such a pivotal moment in its transformation journey. HCLTech is investing substantially in nextgen automotive engineering. This strategic engagement reflects our commitment to delivering high performance, future-ready engineering solutions that help shape the mobility of tomorrow,” said Pankaj Tagra, HCLTech, corporate vice president, manufacturing and allied industries, Europe.