Hitachi leans on Indian talent with $9.6 billion deal to buy GlobalLogic

Hitachi said it would pay $9.6 billion to acquire US digital engineering services firm GlobalLogic, which has more than half its 20,000 employees in India, as the Japanese conglomerate looks to strengthen its digital offerings to clients.

GlobalLogic, among the earliest software product development firms that leveraged Indian talent, builds software and digital products for more than 400 clients globally. The company has a presence in eight Indian cities, including Bengaluru, Pune and Noida.

“GlobalLogic has nearly 60% of their 20,000-strong workforce based in India and the India presence will be important for them like an MNC having a footprint in the country,” said Pareekh Jain, founder of Pareekh Consulting. This is the biggest acquisition in the engineering space after the Capgemini-Altran deal, said Jain.


Hitachi looks to leverage GlobalLogic to strengthen its advanced digital solutions and services.

“The acquisition of GlobalLogic creates an exciting new opportunity for Hitachi to expand our offerings of Lumada solutions and services, provide value to customers in their digital transformation journey, and grow our Lumada business globally,” Hitachi CEO Toshiaki Higashihara said in a statement. GlobalLogic’s revenue is expected to reach nearly $1.2 billion with an adjusted operating margin of more than 20% in fiscal 2021.

With a high profitability profile and strong revenue growth, GlobalLogic will aim to achieve adjusted operating earnings of over $1 billion by fiscal 2028, the statement said.

“Companies in every industry are transforming with digital technology – to better engage customers, create new revenue streams and drive a higher quality of life,” GlobalLogic CEO Shashank Samant said. “We have a tremendous opportunity ahead and we are excited to embark on this journey with Hitachi, combining our collective skills, technologies, and market presence to deliver greater value to our clients as they transform their businesses.”

Analysts said GlobalLogic’s India presence and the talent pool would be important for Hitachi.

Indian talent has been a key attraction for global technology services companies as they look to deliver services globally.