Volvo Cars Appoints HCLTech to Provide Engineering Services

In the latest example of a global automobile manufacturer tying up with an Indian software and technology services provider, Volvo Cars has appointed HCLTech as a strategic supplier for end-to-end engineering solutions. 

The companies are already partnered for digital and PLM (Product Lifecycle Management) services, but this new agreement expands HCLTech’s role to additional and larger-scale engineering projects. HCLTech will work from Volvo Cars’ Automotive Centre of Excellence in Gothenburg, Sweden, and other offshore and nearshore delivery centres.

“We are proud to broaden our relationship with Volvo Cars at such a pivotal moment in its transformation journey,” said Pankaj Tagra, HCLTech Corporate Vice President, Manufacturing and Allied Industries, Europe in a press statement. “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.”

The companies have a longstanding relationship. In 2016, HCLTech acquired Volvo Group’s external IT services business for $138 million (approximately ₹1,180 crore), giving it a greater presence in the IT infrastructure services market in Europe, as well as significant engineering talent. HCLTech was then tasked with managing the modernisation of Volvo Group’s technology operations, with a focus on cloud infrastructure, business intelligence, network and device management, and automation.

Earlier this year, Indian news outlets reported that incumbent HCLTech was competing with Infosys for Volvo Cars’ technology services contract, valued at up to $1 billion (approximately ₹8,560 crore), as it was coming up for renewal.