As part of a $1.8-billion deal, HCL Technologies will take onboard nearly 2,000 employees of IBM. The deal between the two companies involved HCL acquiring some of IBM's software assets. The move comes as the former company is strategising to shore up its IP-led business faster than the traditional software services.
The deal is expected to be complete by June. The acquisition of IBM's products would give HCL access to over 5,500 clients globally. Chief Human Resources officer for HCL Tech, Apparao VV said to Economic Times in an interview, "Mode 3, which is the products and platforms segment, has their own salesforce. (With the IBM products), we have inherited somewhere around 1,500-2,000 people." Mode 2 and 3 are categories for the company's emerging tech and IP-led businesses that garner more than 28 per cent revenue.
Apparao also said that they were hiring a number of people such as customer experience architects and cloud architects. "Our acquisitions are selective, to build capability and not only to buy revenue," he said.
HCL Tech will be acquiring IBM products such as Appscan, BigFix, Unica, Commerce, Portal, Notes & Domino and Connections for secure app development, secure device management, marketing automation, omni-channel e-commerce, digital experience, email and low-code rapid app development and workstream collaboration, respectively.
HCL Tech, India's third-largest IT services provider in terms of revenue, said that it was making significant investments in creating innovation labs and other growth areas for IP-led businesses, as mentioned in the daily.
The company had said in December that it would acquire eight IBM IP-based products that would involve a total addressable market of more than $50 billion.