Friday, February 6, 2015

Everything points towards India for Volvo Information Technology – New Technology

It is only weeks left before the sale of Volvo’s large-scale IT operations with several thousand employees publication. The world’s major consulting firms have gold weathering but there may be a relatively unknown Indian consultant who wins the deal.

Volvo chief Olof Johansson confirmed the closing presentation last Thursday that there is an ongoing review of IT operations and that it will be an answer soon.

– We are working as fast as we can with this issue and we promise there will be an answer now in the first quarter, says Olof Pettersson.

One of Volvo’s major shareholder Christer Gardell has long been critical of Volvo IT would be part of Volvo.

– I do not think Volvo is the most efficient provider of IT services, said Christer Gardell Dagens Industri a year ago.

It was clear that several major IT consultancies courted Volvo with concrete proposals to take over Volvo IT.

Companies mentioned in the speculations are all great – from the American giants IBM, HP and CSC to European Tieto, CGI and Capgemini. Even Indian Tata Consultancy Services, which for decades has built up a large business in Sweden, are on the list.

But the company who increasingly singled out in the speculations are Indian Tech Mahindra, consultant part of the giant Indian industrial and services group Mahindra Group, whose subsidiary of Mahindra & amp; Mahindra was involved in the bidding for Saab Automobile.

– What is special with Tech Mahindra is that they are eager to grow and they are already inside the Volvo Sphere. It is a very hot kanditat, said IDC analyst Johan Hallberg Ny Teknik’s sister magazine Digital Technology in December ..

Tech Mahindra made his entry into Sweden for spring 2013 when it bought the Sony Mobile’s test lab in Lund and declared its intention to grow in Sweden and Scandinavia.

A year later, in March 2014, came the news that Tech Mahindra won the tender competition for a large consultancy contract with Volvo Cars. This applies to the support of IT infrastructure and service to the Volvo Cars factory in Sweden, Belgium and China.

The next move was to open a consultant office in Torslanda to be closer to his new major customer. The office was established in the fall when the agreement with Volvo Cars took effect.

– By establishing ourselves here, we want to become a serious player in Sweden and show that we are supposed to be here for a long time, said Sundar Sankaralingam, director of the office in Gothenburg, GP last fall.

Exactly how much of Volvo IT, which will be sold is still unclear.

– We are reviewing the entire IT operations, everywhere we engage. Some are specifically linked to our core business and fully conclusive, said Volvo AB’s CIO China Wileke to New Technology in November last year.

Volvo IT is one of the leading IT consulting firms. It has existed as an internal department within the Volvo Group for decades, long before cars were sold to Ford Motor Company

From the beginning it was mainly Volvo Group mainframes and industrial it was in focus but gradually came PC management and SAP business system into the picture. During the 1980′s and 1990 numbers outsourcing trend extended Volvo IT, their domains and took over the operation of many large enterprise IT operations.

The largest customers today, except for the Volvo Group and Volvo Cars, SCA, Assa Abloy and Stockholm City.

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