Infosys sets up JV with Hitachi, Panasonic and Pasona

Infosys said it would help set up procurement processes, consulting, analytics and digital technologies fueled by artificial intelligence (AI) and Robotic Process Automation (RPA)

April 1, 2019

The venture, Hitachi Procurement Service, will offer differentiated, end-to-end, efficient and high value procurement capabilities to corporations

Hitachi Procurement Service will be headquartered in Japan with more than 200 employees and Infosys will control 81 per cent of the joint venture

Government of India is aiming to set up a software Industry with valuation of US$70-80 billion, and providing employment of 3.5 million by 2025

Indian IT-BPM players are focussing on artificial intelligence (AI), machine learning (ML), Internet of Things (IoT), robotics, blockchain, among others

Infosys Ltd said on April 1 that it has completed the formation of a joint venture (JV) with Hitachi Ltd, Panasonic Corp and Pasona Inc, strategically enhancing its presence in Japan. The Indian IT-BPM firm had first announced the partnership in December 2018. The JV will support business process transformation, leveraging digital procurement platforms for the local and global needs of Japanese corporations. Infosys said it would help set up procurement processes, consulting, analytics and digital technologies fueled by artificial intelligence (AI) and Robotic Process Automation (RPA). This will support Hitachi and Panasonic’s procurement functions and local teams, as well as Pasona’s human capital and BPM networks in Japan.

The venture, Hitachi Procurement Service Co Ltd (HIPUS), will offer differentiated, end-to-end, efficient and high value procurement capabilities to corporations, according to an official statement. It will be headquartered in Japan with more than 200 employees. Infosys will control 81 per cent of HIPUS, with Hitachi, Panasonic and Pasona owning the rest of the entity. The growing capabilities of Indian IT-BPM firms in next-gen technologies such as artificial intelligence (AI), machine learning (ML), Internet of Things (IoT), among others, have helped expand their global footprint. Currently, more than 200 Indian IT-BPM firms are working in over 80 countries, providing services to a third of the Fortune 500 firms.

The Indian IT- BPM sector is expected to have registered a growth of around 9 per cent in 2018-19. In 2017-18, India’s IT-BPM export was reported at US$129 billion. The sector is expected to report revenue of US$350 billion by 2025, from US$167 billion in 2017-18. In february 2019, India’s Union Cabinet had approved the National Policy on Software Products-2019 to develop the nation as a software product hub. The Government has budgeted over US$215 million to implement programmes and schemes envisaged under the policy over a period of seven years. India is aiming to set up a software Industry with a valuation of US$70-80 billion, and providing total new employment of around 3.5 million by 2025.

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