GlobalLogic taps into Hitachi network to speed up growth

Hitachi is the world’s third largest technology company and GlobalLogic is tapping into the complementary industry and capability strengths across group companies.

“Earlier, where we would have done a part of the project, we can now collaborate with other group firms and take on larger projects,” said Sumit Sood, vice president and head of APAC, GlobalLogic.

This has helped increase its scope of work for clients, resulting in large project sizes. The company had already set up an office in Japan, where Hitachi is headquartered, and would use this to further strengthen its presence in countries that form the Association of Southeast Asian Nations (Asean), as well as the Asia Pacific region.

Sood said India was the largest growth engine for the company, and the largest talent factory. Globally, Hitachi intends to add 31,000 new employees to its existing workforce by 2024, over half of which would be done through GlobalLogic, he said. GlobalLogic has 28,000 employees globally, of which 14,000 are in India.

Talent remains a challenge, he admitted, especially given the rapid pace of change in technology. The company has set up internal academies to train employees on key skills, ranging from six-month programmes to longer term ones.

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The company has identified new areas for growth under Hitachi, including energy and rail and transport.

“We are working aggressively in this space (energy) and doing a lot more in collaboration with Hitachi,” he said.

The companies were also working together on creating solutions where Hitachi could offer ‘ride as a service’ to a country or city.

There is now a hyperconvergence of technology to deliver seamless experiences, irrespective of platforms. This will open up newer opportunities for clients in terms of how they would offer services to their end customer, and for providers like GlobalLogic, he added.

GlobalLogic reported revenues of $1.28 billion for the fiscal year ended March 31, growing at 38% year on year.

Sood said India was at the centre of its growth.

“We are operating in the fastest growing industry in tech, the firm is the fastest growing in the industry and India is the fastest growing geography inside the firm,” he said.

In the medium term, the company is focused on managing the situation in Ukraine where it had about 7,000 people, and setting up additional operations in Eastern European countries.

Sood said potential acquisitions would be driven by three factors – access to a geography, capabilities or industry, and would not be done simply to boost revenue.