HCL Offers a Way Forward for Asset-Heavy Incumbents with a Cloud Quandary

​Earlier this year HCL announced a large IT outsourcing agreement with Swedish automotive giant Volvo with a strong emphasis on Cloud transformation. While the deal can be seen as just another IT services engagement, it is a signal of an emerging scenario in a broader set of industries, specifically those with strong but asset heavy incumbents, such as Energy & Utilities.

HfS expects to see more of these transformational deals but not as a new trend counter to the As-a-Service Economy. Rather as a lifeline for enterprise IT stuck in the past, not able to write off all legacy at once and skip this step and go directly to the Cloud.