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Indian IT firms partner with clients to market third-party products

Many recent deals of IT firms show that vendor-client relationships are taking the shape of business partnership between the two parties, wherein either IT companies are doing business with their clients/former clients or monetising clients’ assets by selling products to third parties.

On Tuesday, IT major Wipro and General Motors along with auto parts supplier Magna announced that they are developing a B2B sales platform to buy and sell automotive software. General Motors has been a client for Wipro for many years. While Wipro disclosed that it has made an investment of $5.85 million by acquiring a 27% stake in SDVerse, GM and Magna will hold 46% and 27% stake, respectively.

Similarly, on Wednesday, Aramco Digital, the digital and technology subsidiary of Aramco, and LTIMindtree signed an agreement to form a joint venture in an IT services company in the Kingdom of Saudi Arabia, to provide information technology services in the Middle East and North Africa (MENA) region. Aramco has been a client for the larger L&T group for many years. Sudhir Chaturvedi, president and executive board member, LTIMindtree, said, “With Aramco Digital, we will bring our global capabilities and expertise and leverage new technologies to deliver digital transformation suitable for giga projects, the government sector, high growth industries, energy, manufacturing, and the financial services sector”.

In August last year, Tata Consultancy Services (TCS) was selected as a strategic partner by Lexmark, a global imaging and IoT solutions provider, to transform its enterprise applications. As part of the deal, TCS is also supposed to help Lexmark take its Optra platform, which bridges IoT device data with core business systems, to manufacturing and retail clients worldwide.

Similarly in the same month, Infosys signed a deal with leading converged video, broadband and communications company Liberty Global, wherein they expanded their collaboration to evolve and scale Liberty Global’s cutting-edge digital entertainment and connectivity platforms. As part of the deal, Infosys will help Liberty Global monetise its internal platform. “Liberty Global is licensing these platforms to Infosys so the digital services provider can offer best-in-class services to new operators and new markets outside the Liberty Global family,” Infosys had said in a statement.

Prior to that, Infosys had collaborated with Shell Global Solutions International BV (Shell), to be the commercialisation partner of the “Shell Inventory Optimiser” solution. Through this collaboration, Shell and Infosys launched “Shell Inventory Optimiser” as the first product offered to its energy customers. The solution uses artificial intelligence that enables companies to optimise warehouse inventory levels based on historical consumption.

Pareekh Jain, founder of Pareekh Consulting, said, “Monetising clients’ solutions is the next level of partnership between IT companies and clients. They are not only reducing clients’ cost of operations through cost take out deals and building capabilities, but also helping them directly in generating revenues. These deals are modern and non-traditional in nature and help clients transform their cost centre to profit centres and open up new business avenues”. Financial Express

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