PUNE: Indian IT services companies are increasingly looking at Nordic countries, with most firms already having a sizeable presence in the region. Over the last few months, Tech Mahindra and Wipro said that they would set up centres in Finland, while HCL Technologies has been present there for a decade now. Infosys, in addition to working with companies in the region, got a foothold in the market through its acquisition of Fluido in 2018.

The Nordic countries — Finland, Sweden, Norway, Denmark and Iceland — are largely English speaking, which removes the language barrier that exists in some other countries within continental Europe.

Even as they are bound by EU guidelines, these countries are making it easier for foreign nationals to move there, given the shortage of highskilled local talent.


“The Nordic region of Europe is definitely one of the most progressive and innovative regions, with many leading technology companies — including chipmakers, semiconductor, equipment manufacturers and service providers — having their research and development base in the country,” said Jagdish Mitra, chief strategy officer, Tech Mahindra. “With such a futuristic communication ecosystem and a high-quality workforce that understands technology, it makes good sense to step-up our presence in the region.”

L&T Infotech (LTI), a group firm of engineering conglomerate Larsen & Toubro which was set up by two Danish engineers in 1938, looked at this region first when it decided to expand into Europe. “Nordics’ IT & BPO services market size is estimated to be over $25 billion, and has a high outsourcing maturity in the region… Our investment and expansion are further driven by the fact that Nordic countries have been at the forefront of innovation,” said Sudhir Chaturvedi, president-sales, LTI, which also provides services to the region from its nearshore centre in Poland. LTI recently won a multimillion dollar contract with Hoist Finance AB of Sweden. In recent years, IT sector growth has been led by digital trends like Cloud, AI and automation, and India has emerged as an important source of talent for the region. “Companies have access to the global market beyond just the Nordics. With 5G and 6G connectivity, there’s a lot of R&D being done here across industries like telecom and healthcare,” said Jukka Holappa, country manager India, Business Finland.

Interest in the region started with telecom, but over the last few years it has extended to almost all other industry segments.

“The Scandinavian strategy of Indian service providers is two-fold. First, increase share of wallet in large accounts where they have footprint but compete with other local and global firms. Second, target new accounts, typically medium size businesses,” said Pareekh Jain, founder, Pareekh Jain Consulting.

L&T Technology Services (LTTS), for instance, started out working with a few marquee customers in the region, and then scaled it up to multiple accounts. Today, it is the largest pure-play engineering services company in the Nordics belt. Alongside, it has also moved up the value chain, partnering with companies on their digital transformation initiatives.

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