Mumbai: HCL Technologies Ltd has entered into a multi-million dollar strategic agreement with Japan's EXA Corporation, a leading system integrator, in which IBM has a 51-per cent stake. Describing it as a path-breaking initiative, HCL Technologies says the agreement would enable it to provide offshore-based IT solutions and system integration services to EXA's blue-chip customer base.
This is said to be the first IteS sector partnership of such a large scale between a Japanese system integrator and an Indian offshore vendor.
EXA is a 51:49 joint venture between IBM Japan and JFE Steel, the second largest steel manufacturer in Japan. EXA has a strong customer base in the manufacturing, engineering, finance, card business and public sectors.
This partnership would enable EXA to expand its client base and acquire a leadership position in the lucrative but highly competitive $100-billion systems integration market in Japan, leveraging HCL Technology's application consulting services offerings. The business targeted through this partnership is $100 million in next five years.
The HCL-EXA partnership is the first of its kind for HCL in the field of application consulting services in Japan. The Indian IT leader will implement large scale projects for migration and / or conversion and re-engineering of legacy applications for EXA's customers. The other significant areas of engagement will include product development and maintenance for Manufacturing IT solutions and enterprise consulting services in Oracle EBS. These projects would be executed out of HCL's centres in Noida (NEC-HCL Technologies inaugurate Noida facility) and Chennai. The partnership will also enable the Company to significantly scale up its business in Japan.
"This collaboration between HCL and EXA marks another significant milestone in HCL's journey in Japan," said Vineet Nayar, president, HCL Technologies, commenting on the partnership. "It will reinforce HCL's articulated strategy of becoming a full services player in application consulting services."
which inaugurated its facilities in the NOIDA last and inaugurated their new facility -. The company also was recently awarded the prestigious "Excellence in Education Award" for 2005 for the Life Office Management Association (LOMA) for the second years in succession.
The company has been in the news this month, for not only its JV with NEC Corporation, Japan, but also for becoming the first India-based design house validated as Ready-for-IBM Technology (See: HCL chip design services validated as ready-for-IBM technology) under which HCL will design and carry out the silicon level implementation of advanced integrated circuits (ICs) for manufacturing in IBM's state of-the art wafer foundries.
Last month, the UK-based Corporate Research Foundation, the British Computer Society and the National Computing Centre had ranked HCL's British subsidiary, HCL Great Britain, as one of the top information and communication technology (ICT) employers in the UK, where the company is largest Indian IT employer of local staff in the UK and among the top 10 private sector employers in Northern Ireland (See: HCL Technologies named as a top ICT employer in UK).