State Street Corporation (NYSE:STT), a major player in the financial services industry, is set to acquire full ownership of Statestreet HCL Services, a joint venture established with HCL Technologies in 2012. The company announced today that the acquisition is scheduled for completion by the second quarter of 2024. This decision is part of State Street's broader strategy to consolidate its operations and enhance its global business services model.
The move to take complete control of the joint venture aligns with State Street's actions earlier in October 2023 when it assumed control of another Indian joint venture. These steps are indicative of the company's commitment to streamlining its operations and providing efficient services to meet client needs effectively.
Mostapha Tahiri, executive vice president and incoming Chief Operating Officer of State Street Corporation, has highlighted the acquisition as a natural progression of State Street's long-standing partnership with HCLTech, underlining their role as a pivotal technology partner. The collaboration aims to improve client experiences through service advancements.
Despite these structural changes, Srinivasan Seshadri from HCLTech maintains a positive outlook on the ongoing IT partnership with State Street. The relationship between the two companies has been fruitful, with State Street managing an impressive $40 trillion in assets under custody/administration and $3.7 trillion under management as of September 30, 2023. In comparison, HCLTech reported annual revenues of $12.9 billion for the same period.
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