Swedish Husqvarna expands IT outsourcing agreement with HCL
The Swedish power tool manufacturer Husqvarna has signed a new multi-year IT service contract with India’s HCL as it continues its digital transformation.
The deal means that the two companies extend a long relationship that goes back about 10 years. It also reflects the strength of HCL’s Nordic operations and the trust it has gained in the region, where it has grown rapidly.
In 2016, after signing a five-year infrastructure and application development outsourcing agreement with HCL, Husqvarna sent data center services, network services, security services, application operations and support services to the Indian company.
The latest broadening of the contract will mean increased automation, which means that its 10,000 employees can focus on customer support. HCL will also collaborate with Husqvarna to innovate in its products and services.
Husqvarna manufactures forest and garden machines such as tractors, lawn mowers and chainsaws. In recent years, it has transformed into a product and service company with customer bases from company to company and company to consumer, offering digital products as a complement to its hardware.
Digital services offered by the manufacturer include connected lawn mowers, which are already on the market. This is part of Husqvarnas Gardena Smart System, an internet of things (IoT) solution for gardening in an integrated system. In a smart garden, technology helps to provide optimal care for plants and grass. Gardeners can get an overview of their garden in real time through an app for smartphone or tablet that allows them to control and configure all their connected devices, even when they are traveling.
“We are excited to take our relationship with HCL Technologies to the next level,” said Pavel Hajman, CIO at Husqvarna. “Both organizations are focused on creating business value and this is a fantastic foundation for us to continue to transform our IT business and our business. The partnership will enable us to deliver outstanding service to our end customers and further drive our transformation programs. ”
Pankaj Tagra, head of the Nordic region at HCL, said that the long relationship between the two companies had created a platform for closer cooperation. “The trust between the two organizations gives us an overview of Husqvarna’s operations,” he said. “As our collaboration grows stronger, we are determined to support Husqvarna’s digitalisation to achieve its business goals.”
Peter Schumacher, CEO of the management consulting company Value Leadership Group, said that HCL has built up a strong business in the Nordic region after “significant investments”.
This included the acquisition of Volvo IT services, the IT service within Volvo’s Sweden-based truck manufacturing operations. Schumacher said that this acquisition was important for HCL to build up its Nordic operations.
“This was a bold move by HCL, which put it in a strong position in Sweden. It gave them a stronger local face and a deeper understanding of the market and a much more intertwined web of customer relationships. ”
Schumacher said that trust was built up as the acquisition signaled to the Swedish and broader Nordic market that HCL was serious about doing business in the Nordic region. This was part of its strategy to “land and expand”, he added.