HCL Technologies signed a strategic pact with leading South Korean software company HANCOM Inc on Tuesday to “share advanced software technology and establish a mutual bridgehead for overseas expansion,” as said by the Indian IT firm in an exchange filing.
The partnership is expected to open doors to new international markets for the companies, giving HCL access to the inroads of South Korean market whereas HANCOM would be able to venture into countries like Vietnam, Taiwan, Bangladesh and Middle Eastern countries.
HCL Technologies has stated that it would aid training for software development at HANCOM’s research and development (R&D) centre in India. The firm also expressed its intent to share its development studio and to provide HR support according to the growth requirements of the R&D centre. According to a regulatory filing, the R&D centre was established in 2016. HCL Technologies is looking into promoting technological cooperation in order to bolster HANCOM products’ competitiveness at a global scale.
With America and Europe being the largest markets contributing to HCL technologies’ revenue, South Korea comes under the Rest of World (ROW) category for HCL. HCL Technologies Corporate Vice-President Sanjay Gupta said, “South Korea is a key strategic market for HCL, and this engagement with HANCOM will further help us grow and establish ourselves in the region…We look forward to leveraging HCL’s next-gen technological skills and HANCOM’s strong presence in the region to mutually support each other.”
HANCOM Chief Operating Officer Daeki Kim said HCL Technologies’ modern applications and architecture principles will allow HANCOM to scale its products to make them more suitable for enterprise customers in the global market and ultimately achieve global aspirations with its products. “HANCOM will continue to support HCL in its endeavour to scale its growth in the South Korean market,” Kim added.
Post this partnership, HCL technology saw its shares hit a record high on Tuesday.