Volvo offloads IT biz to HCL, then outsources own IT to.... HCL

20 data centres, 11,000 servers. What can go wrong?


Swedish battering ram truck maker Volvo has offloaded its external IT business to HCL Technologies for around SEK 900m and signed a deal with the Indian outsourcing monster to overhaul its apps and plumbing.

The deal, first outlined in a letter of intent written by the companies in October, will see roughly 2,500 techies across eleven countries transfer to HCL, along with 40 customers whose IT was previously serviced by Volvo.

According to a blurb from both companies, HCL will stick to a “transformation roadmap” to drag Volvo’s infrastructure and application operations up-to-date, getting it ready for cloud services, automation and big data.

This involves 3,500 applications, 20 plus bit barns, more than 11,000 servers, 12 PB of storage, over 20,000 MIPS of raw mainframe capacity and 15,000 networking devices. Where can it go wrong?

And lest we forget, HCL will also give 65,000 Volvo end users access to services including Office 365. The Indian outsourcing outfit will also create an Automotive Centre of Excellence in Sweden based on the “domain expertise” of Volvo for its other global automotive and manufacturing punters.

The sale of Volvo IT and outsourcing agreement comprise efforts to wipe SEK 10 billion of structural overheads at the Nordics-based group. ®

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