Fonterra signs up HCL for IT infra transformation

New Zealand’s dairy co-operative Fonterra has entered an agreement with India-based HCL Technologies to upgrade and manage its global IT infrastructure

February 18, 2020

The deal will extend HCL’s New Zealand presence to three offices within the country, adding around 60 new jobs

Fonterra, one of the world’s largest dairy cooperatives, is owned by 10,000 farmers. It has operations in India

Riding on the back of next-gen innovations, India has emerged as one of the most reliable destinations for IT solutions

The target of recording annual IT revenue of US$350 billion by 2025 is a major building block for a US$5-trillion economy

New Zealand’s dairy co-operative Fonterra has entered an agreement with India-based HCL Technologies to upgrade and manage its global IT infrastructure, as per a joint statement on February 18. As per the multi-year deal, HCL will streamline Fonterra’s technology suppliers and consolidate its IT infrastructure services under one umbrella. The service aims to boost Fonterra’s employee experience and improve navigation across the company’s business operations. The deal will extend HCL’s New Zealand presence to three offices within the country, adding around 60 new jobs to the Waikato region, home to about 11 Fonterra sites. Fonterra, one of the largest dairy cooperatives in the world, is owned by 10,000 farmers. 

Riding on the back of constant innovations and improving capabilities in next-gen technologies, India has emerged as one of the most reliable destinations for IT solutions. An increasing number of Indian IT-ITeS firms have been winning clients from around the world, expanding the market for Indian IT services. In 2018-19, over 25 per cent of India’s total exports was contributed by the Information Technology and Information Technology enabled services (IT-ITeS) industry. The sector, growing at an annual rate of up to 9 per cent, is also a major force in employment generation. Additionally, the Government’s target of recording annual IT revenue of US$350 billion by 2025 is a major building block for a US$5-trillion economy. 

To enable more such global opportunities, last year the Government of India 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. The policy augers well for R&D into emerging technologies, while aligning with Digital India, Startup India, Skill India and Make in India programmes. India is rushing to set up a software product industry that is driven by intellectual property (IP), which will lead to a 10-fold increase in India’s share of the Global Software product market by 2025, building on new enterprises and skills.

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