HCL forms JV with NEC for software engineering solutions

Japanese company NEC Corporation, provider of Internet, broadband network and enterprise business solutions, and HCL Technologies Ltd, an Indian IT products and services company, have announced the formation of a JV company. This venture would provide offshore led software engineering solutions in embedded software, hardware design, network and security, R&D, high performance computing, and mobile technology to NEC, its subsidiaries and their clients, in Japan and globally. NEC Corporation and its subsidiary, NEC System Technologies will have a 51% stake in the JV while remaining 49% will be held by
HCL. 

Speaking on the occasion, NEC Corporation EVP and NEC System Technologies President, Toshihiko Takahashi informed that NEC would invest $ five million in this venture. He added, “The JVC would be established in August and would start operating in October. The company would employ 70 people by this year-end and expects this to increase to 250 people in the next three years.”

Toshihiko further added, "This alliance is a part of NEC's strategic intent to harness Indian IT prowess and leverage its IT eco system advantages to provide greater value and higher quality of IT products and services to its subsidiaries and their clients globally. We would also explore business in areas not covered in the current focus of JV.” 

The JV is expected to grow to about $25 million in three years and has a potential to scale up to $75 million to $100 million of revenues per annum in five years time frame. The JVC would be based out of Noida and HCL shall provide the CEO and CTO along with some key technical people to kick start the JV. 

Speaking on the occasion, HCL Founder and HCL Technologies Chairman and CEO, Shiv Nadar said, "It is a first JV of its kind where a Japanese technologies giant and one of the largest IT groups of India have come together to form a JV focused on Japan business. This JV is not meant to exploit technology developed by NEC but would strive towards developing new technology for NEC to cater to its clients globally." 

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