New Delhi: HCL Tech has signed a multi-million dollar pact with Japan's EXA. HCL Tech will provide offshore IT services to EXA's clients.
The company will provide offshore IT services to EXA?s clients. HCL Tech has a target of $100 million revenue over the next five years from the deal.
EXA is a 51:49 joint venture between IBM Japan and JFE Steel.
Analysts say that there are a few reasons why the company is focusing on the big Japanese market.
Japan is the third largest in terms of IT spending. Again its margins are comparable to the US and the European region. Hence, focussing on this market is good for HCL Tech as there are not many Indian IT companies tapping this market.
Further, HCL Tech is looking at the Japanese market to contribute 10 per cent of their revenues. They have recently launched a joint venture with NEC, targeting revenue of around $100 million in the next five years. The current EXA joint venture is also looking at getting about similar amount of revenue in the next five years.
While NEC joint venture focuses on technology development, this venture will focus more on application and infrastructure services.
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