Indian IT major Infosys has formed a joint venture with Japanese conglomerates Hitachi, Panasonic and Pasona to enhance its presence in the region, said a senior executive. The consulting firm said that they will work for business process transformation leveraging digital procurement platforms for the local and global needs of Japanese corporations.
“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 Deepak Padaki, Executive Vice President & Head, Corporate Strategy, Infosys.
Under the agreement, Infosys will acquire 81% of the shareholding in Hitachi Procurement Service, a Hitachi's fully owned subsidiary that currently handles indirect materials purchasing functions for the Hitachi Group. Hitachi, Panasonic and Pasona will be minority shareholders of the entity, said the company.
With Infosys expertise in procurement processes, consulting, analytics and digital technologies such as artificial intelligence (AI) and Robotic Process Automation (RPA) and 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 high value procurement capabilities to corporations, said a statement.
“This 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 Ravi Kumar, President, Infosys.
“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,” said Masashi Murayama, Chief Procurement Officer, Hitachi.