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Dutch multinational hires HCL for digital transformation

Netherlands-based DSM is moving to a single-supplier IT services model for its digital transformation

Science-based multinational DSM is moving to a single supplier for its digital transformation, with India’s HCL and its digital execution framework chosen to take the project forward.

The Netherlands-headquartered company, focused on the health and nutrition sectors, signed a multi-year deal with HCL which will see the supplier modernise core IT systems and introduce a cloud-first strategy, agile delivery, and next-generation security and networking.

HCL will connect the entire company through a digital work environment and support DSM’s move to a product-based IT operating model.

“To underpin DSM’s strategy and our purpose to improve the health of people and the planet, we are in the midst of a digital transformation so that we can better serve our customers,” said Ipek Ozsuer, chief digital officer at DSM. “We wanted to transition from a multi-vendor landscape and work with a sole integration partner that has the deep expertise to help drive our digital ambitions.”

HCL will use its Fenix 2.0 digital execution framework to drive best practices and accelerate transformation at scale across DSM’s business units and product lines. Using automation and analytics, HCL will attempt to improve IT service delivery for approximately 18,000 users across 200 sites in more than 50 countries.

“We’re delighted DSM chose HCL to support its digital transformation,” said Ashish Kumar Gupta, chief growth officer for Europe and Africa at HCL Technologies.

“DSM is a pioneer in responsible business and led by a purpose that is very much aligned with HCL’s own culture, values and commitment to supporting our global communities. This engagement is a testament to our successful track record in working closely with clients to support digital transformation across their business.”

Read more about HCL in Europe

Peter Schumacher, CEO at management consultancy The Value Leadership Group, said HCL’s engagement with DSM underscores the enormous success Indian IT services firms continue to enjoy in Europe, particularly in the Netherlands. “This quarter, HCL Technologies reported 22.5% annual revenue growth in Europe.

“This growth is in part fuelled by deep structural local talent shortages that are challenging the abilities of European companies to up their investments in IT,” he said. “To access much needed talent, Dutch companies have also established sophisticated captive and engineering centres in India, which they are expanding.

“While companies continuously pivot between single and multi-vendor sourcing, DSM’s decision to pursue a single-vendor model with HCL is possibly related to their objective of modernising their core IT business systems and transitioning to a product-based IT operating model. To address this kind of a challenge, an overarching framework and common methodology is needed, and this should be more difficult to achieve when using multiple partners. 

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