HCL expands in Nordics with delivery centre in Norway

Indian IT services giant HCL Technologies is expanding its reach in the Nordics with its third service delivery centre in the region

Indian IT services giant HCL Technologies is expanding its reach in the Nordics with a third service delivery centre in the region.

With about 100 staff, the newly opened centre in Oslo will serve as a hub to provide IT infrastructure and application services to its customers in the Nordics.

HCL is looking to grow its customer base in the region. “The opening of the Oslo global delivery centre will support HCL’s ongoing growth strategy in the Nordics,” said C Vijay Kumar, corporate vice-president for infrastructure services delivery at HCL. “It will help us engage in closer interactions with our customers and partners in the region.”

First to benefit from the Olso centre is DNB, Norway’s largest financial services group, which signed a $400m deal with HCL in May 2014. The seven-year agreement includes management of IT infrastructure services and core applications for all DNB businesses.

“The proximity of HCL’s new service delivery centre to DNB’s headquarters will be a significant benefit in supporting our strategic business needs,” said Liv Fiksdahl, COO at DNB. “In today’s digital service economy, our vision is heavily reliant on the availability of stable, reliable and state-of-the-art IT services.”

According to HCL, the centre will also support Digital Agenda for Norway – the Norwegian government's initiative to optimise the country’s ICT sector and public services. The digitalisation project aims to simplify, improve and modernise public services in Norway.

“HCL has a number of existing customers and partners in the Nordics,” said Kumar, adding that the local government’s focus on the digital agenda is more reason for HCL to invest in local resources.

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The Oslo centre, located in the Barcode business area, will add to HCL’s existing service delivery facilities in the Nordics, which are in Espoo, Finland, and Stavanger, Norway.

HCL, which employs more than 100,000 people in 31 countries and has annual revenues of $5.7bn, entered the Nordic market in 1999 when it opened its local headquarters in Stockholm, Sweden. The company setup in Norway in 2010.

Currently, HCL has about 800 staff in the Nordics, across six offices in Finland, Sweden, Norway and Denmark, in addition to the three delivery centres.

HCL’s main focus areas in the Nordics are digitisation, service integration and management, next-generation datacentres and workplace services. Its customers include Statoil, Ikea, Nokia and UPM.

HCL is not the only Indian IT supplier strengthening its presence in the Nordics. IDC Nordic analyst Johan Hallberg said Indian service providers have grown their market share significantly in the past two years due to aggressive recruitment. 

He sees security and privacy issues as one reason for investing in delivery centres in the region as customers prefer their data to be stored locally: “Indian service providers such as HCL have recognised this and we’ve seen a clear trend of them building or renting space in datacentres. Most of the Indian service providers have this capability locally in the Nordics today, even though it is not always their own facilities.”

Other major Indian IT companies operating in the region include Tata Consultancy Services (TCS), Tech Mahindra, Infosys and Wipro.

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