GlobalLogic, a Hitachi group company, is setting ambitious targets, eyeing a $5 billion enterprise status by 2028, signaling a surging demand for digital engineering services. CEO Nitesh Banga revealed that the company is already approaching a $2 billion revenue run rate, surpassing Hitachi's forecast of $1.7 billion for the 2023-24 financial year, representing a remarkable 22% increase from the corresponding period last year.
Banga emphasized the company's commitment to excellence within its domain, transitioning from outsourced product development to design-led digital engineering and now advancing toward intelligent engineering. He highlighted the evolving role of software, asserting that it is progressing from being a third-class citizen in enterprises two decades ago to a second-class citizen in the last decade. He predicts that in the next decade, software will become the enterprise itself, providing ample room for growth due to GlobalLogic's specialization and the enduring demand for its services.
Despite Banga's optimism, Hitachi's integrated report for 2022 estimates GlobalLogic's revenue to reach $2.8 billion for the 2023-24 financial year. Banga remains enthusiastic about the potential in digital engineering, especially in collaboration with Hitachi's Lumada advanced digital solutions. The synergy between Lumada and GlobalLogic's capabilities spans solutions, design, system integration, connected products, and managed services. The acquisition of GlobalLogic by Hitachi for $9.6 billion in 2021 stands out as one of the largest in the digital engineering services space.
GlobalLogic achieved a milestone by closing its first $100 million account last year, with plans to secure another substantial account in the near future. The focus is on expanding their top accounts, which include key clients such as BMW, Volvo, and Continental. Banga highlighted the "sell together" approach with Hitachi, emphasizing co-creation and collaboration to provide comprehensive solutions, unlocking cross-selling and upselling opportunities. With over 30,000 employees and 500 customers, GlobalLogic continues to strengthen its position in the digital engineering services sector.
Piyush Jha, MD, and head of India and APAC at GlobalLogic, underscored the company's strategic emphasis on working alongside global capability centers (GCCs). Jha emphasized a shift from cost arbitrage to a value arbitrage model, focusing on designing, developing, and storing products in the cloud. This approach aims to make the cost per dollar per developer irrelevant, emphasizing collaboration and value creation.
Banga pointed out that GlobalLogic's value lies in collaborating with GCCs, leveraging deep domain expertise within enterprises. The company aims to fill gaps, provide scalability, and offer flexibility, emphasizing not only employee provision but also engagement in people transformation, talent development, and process enhancement.
Addressing the challenges and opportunities presented by genAI, Banga outlined efforts to enhance productivity on the home front, particularly in back-office functions such as legal, HR, and finance. GlobalLogic conducted in-depth analyses and experiments, revealing unique observations about productivity variations among different developer cohorts. The company has invested in prompt engineering training for developers, enhancing their ability to effectively utilize generated code.
GlobalLogic's strategic vision, backed by Hitachi's resources, positions the company as a key player in the evolving landscape of digital engineering services, with aspirations to reach $5 billion in revenue by 2028.