Infosys, the second largest IT services company, on Friday announced the formation of a joint venture with Hitachi Ltd., Panasonic Corporation and Pasona Inc.
The joint venture will strategically enhance Infosys presence in Japan with a focus on helping clients navigate their digital journey.
In a release issued on Friday, the company said joining hands with iconic companies will accelerate business process transformation leveraging digital procurement platforms for the local and global needs of Japanese corporations.
Infosys will acquire 81% of the shareholding in Hitachi Procurement Service Co Ltd, Hitachi’s fully owned subsidiary that currently handles indirect materials purchasing functions for the Hitachi Group. Bengaluru- based IT giant is spending about JPY 2,762 million (approximately Rs 174 crore). Hitachi, Panasonic, and Pasona will be minority shareholders of the entity.
Infosys President Ravi Kumar said the joint venture will help Japanese corporations transform their procurement processes using next-generation digital platforms, as we bring together the combined power of deep procurement expertise, technology, global expertise and local skills.
"We are very excited to partner with the Hitachi group, Panasonic Corporation and Pasona, established conglomerates in this market," said Kumar.
Infosys will bring its global expertise in procurement processes, consulting, analytics and digital technologies such as artificial intelligence (AI) and Robotic Process Automation (RPA) to the venture.
Combined with Hitachi and Panasonic’s knowledge of their procurement functions and local teams, and Pasona’s human capital and BPM networks in Japan, the entity will provide differentiated, end-to-end, efficient and high-value procurement capabilities to corporations.
Deepak Padaki, Executive Vice President & Head, Corporate Strategy, Infosys, added that Japan is a strategic market for Infosys.
"This transaction is a significant demonstration of our commitment to building a local presence in the region in order to partner with our Japanese clients and accelerate their digital journey," said Padaki.
Masashi Murayama, Chief Procurement Officer, Hitachi said the company is delighted to build this new partnership, combining strengths and unlocking potential of Infosys, Panasonic, and Pasona.
"The procurement functions role is critical to Hitachi’ success, and this partnership will strengthen Hitachi Procurement’s global competitiveness with new operating models, and high quality delivery at speed enabled by digital technologies," he said.
According to analysts, Indian companies are looking at growing opportunities in Japan and setting up centres of excellence there. "Besides the presence of Indian IT services companies, Indian product startups are also actively participating to tap growing opportunities in Japanese market," said an analyst.
(With inputs from Furquan Moharkan)
