Narayan AmmachchiDigital engineering services provider GlobalLogic, which runs offices in nearshore locations including Argentina, has been acquired by Japanese industrial conglomerate Hitachi for US$9.6 billion.
San Jose, Calif-based Globallogic was founded in 2,000 by four Indian Americans — Rahul Garg, Sanjay Singh, Manoj Agarwala, and Tarun Upadhyay.
Today, the company has employed more than 20,000 people around the world, with a major chunk of them operating out of India.
It has over 400 customers, including the likes of Volvo, Adobe, and Continental.
The acquisition confirms that Hitachi is diversifying into the IT services sector with an aim of capitalizing on the growing demand for digital transformation services.
“Nearly 65% of global GDP will be digitalized by 2022,” stated the Japanese company citing an estimation by research firm IDC.
“Digital transformation continues to be a priority for organizations everywhere, and the COVID-19 pandemic has only expanded demand for new data-driven business models, customer experiences, and connected ecosystems.”
The rising demand for digital services, combined with the shortage of IT talent, has created a tremendous opportunity for digital engineering services providers such as GlobalLogic.
The acquisition will “help us realize our goal to be the leading digital transformation innovator in social infrastructure worldwide” said Toshiaki Higashihara, President & CEO of Hitachi.
The Silicon Valley firm is expected to earn US$1.2 billion in the current financial year.
“Companies in every industry are transforming with digital technology – to better engage customers, create new revenue,” stated Shashank Samant, CEO, GlobalLogic.
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