#Japan #Tokyo #Hitachi #GlobalLogic #Lumada 3.0

Hitachi's Strategic Merger for Lumada 3.0 Growth

In a groundbreaking move to accelerate the global growth of its Lumada 3.0 initiative, Hitachi Ltd., a leading global technology company, has announced the integration of its subsidiaries, GlobalLogic Inc. and Hitachi Digital Services LLC. The merger aims to bolster Hitachi's digital system and service delivery capabilities, navigating through an increasingly complex digital landscape.

Lumada 3.0 is a strategic endeavor by Hitachi that leverages its digital competencies and domain knowledge, cultivated in mission-critical sectors, to facilitate digital transformation (DX) for its customers and the surrounding infrastructure. With this merger, Hitachi seeks to enhance its offerings across the entire DX lifecycle, from strategic development to operational execution.

GlobalLogic's current president and CEO, Srinivas Shankar, will lead the integrated operations, which are set to commence in April 2026. This merger comes at a crucial time when companies are facing heightened demands for reliable mission-critical systems and AI implementations across various sectors.

Enhancing Digital Transformation

The integration of GlobalLogic and Hitachi Digital Services is strategically designed to cater to the surging customer demand for end-to-end digital capabilities. By harnessing a global network of operational bases and deep domain knowledge, the new entity will serve as a formidable partner from strategy formulation through to operational management.

One of the focal points of this integration is the development of a unified 'AI Factory.' This ecosystem will capitalize on GlobalLogic's `VelocityAI` and the resources of Hitachi Digital Services' `Hitachi Application Reliability Centers (HARC)` to create bespoke AI offerings tailored to real-world applications. The ultimate goal is to ensure seamless implementation of these solutions in mission-critical areas, fostering rapid realization of business outcomes.

Furthermore, merging both companies' strengths in digital engineering, chip-to-cloud software development, and AI tech will allow for more effective tackling of complex issues within key industries such as mobility, energy, and manufacturing. This partnership will also leverage Hitachi's enduring domain knowledge in operational technology (OT) and product areas.

Remarks from Leadership

Jun Abe, Hitachi’s executive vice president and head of the Digital Systems and Services division, emphasized the importance of this strategic merger. He stated, “Our integration aligns with Hitachi’s management plan, `Inspire 2027`. By consolidating the complementary digital services of GlobalLogic and Hitachi Digital Services, we are firmly positioning ourselves to drive social innovation through Lumada 3.0. It’s an essential step forward for us.”

Similarly, Mike Krut, Senior Vice President of IT & CIO at Penske Transportation Solutions, expressed optimism regarding the merger, highlighting how it signifies a shift towards having a single partner that thoroughly understands the industry's nuances. Krut noted the existing capabilities of both companies and is confident that their merger will expand the opportunities for shared growth.

Conclusion

The unification of these two tech powerhouses is expected to magnify the impact of Lumada 3.0 while significantly contributing to the realization of a harmonized society—where environmental sustainability, happiness, and economic growth coexist seamlessly. Through the efficiencies gained from this strategic merger, Hitachi not only aims to meet rising customer demands but also to set a new technological precedent in digital transformation.

In summary, Hitachi's strategy to merge GlobalLogic and Hitachi Digital Services is a noteworthy move aimed at enriching its Lumada 3.0 initiative, advancing digital transformation, and significantly enhancing its capabilities in AI integration across varied sectors.