HCL Tech expands digital transformation delivery capabilities in the Baltics

HCL Tech expands digital transformation delivery capabilities in the Baltics
Photo Credit: VCCircle
17 Dec, 2019

Noida-headquartered information technology services company HCL Technologies has opened two new delivery centres in Lithuania to cater its digital transformation capabilities for clients in the Baltic, Nordic and Benelux regions of the world.

The Asgaard Keys and Technopolis Alfa sites located in the Lithuanian capital of Vilnius were inaugurated by government dignitaries in Lithuania, HCL said in a statement.

The strategic investments will see the company attract specialist talent to develop local capabilities in the areas of infrastructure automation, blockchain and other emerging digital technologies.

In a bid to build an ecosystem of collaborators for growth in the geography, HCL will work with local universities, local and international clients, fintech companies, and Invest Lithuania (IL), it said.

Founded in 2010, IL is a non-profit organization, owned by the ministry of economy of the Republic of Lithuania, which pursues foreign investment in the country.

HCL employs more than 10,000 people in Europe and serves over 200 clients. It has been present in Lithuania since 2016, where its growing employee base currently numbers about 500 as of September, according to its website. The new development will uptick the figure.

HCL hosts a number of innovation labs and delivery centers, world over. Vilnius already houses one of its largest technology hubs in the European region, wherein it provides end-to-end infrastructure and application development management services to its nearshore clients.

 “Lithuania is a country rich in talent and is strategically well positioned within the European Union, with strong connections and partnerships with nearshore Nordic countries. The opening of our new offices in Vilnius marks a significant milestone in our ongoing commitment to the region to help our clients play an even bigger part in the nation's growth and innovation agenda,” Sudip Lahiri, senior vice president and financial services head of HCL in Europe said.

Lithuania is a country with the highest GDP (gross domestic product) per capita in the Baltic region. HCL has exponentially expanded its operations in continental Europe over the last decade.

Earlier in October this year, HCL raised its FY20 revenue growth guidance to 15-17% in constant currency terms from 14-16% previously while retaining its operating margin expectations at 18.5-19.5%. The company posted 6.7% sequential consolidated revenue growth during the quarter ended September 30 to Rs 17,528 crore led by order wins by the newly launched business unit HCL Software. It’s consolidated net profit increased by 21.6% to Rs 2,711 crore. Higher revenues also aided HCL Technologies’ operating margin, which improved to 23.4% from 20.7%.

The same month, it was also in the news for winning a bid to become the primary digital transformation partner for automotive major Volvo Cars.