State Street Corporation (NYSE: STT), a major player in the financial services industry, is geared up to take over the complete ownership of State Street HCL Services, a joint venture established with HCL Technologies (NS: HCLT) back in 2012. The company has announced its plans to finalize the acquisition by the second quarter of 2024. This decision is part of State Street's efforts to consolidate operations and enhance its global business services model.
Recent developments in taking full control of the joint venture align with State Street's previous actions when they accepted control of another Indian joint venture prior to October 2023. These strategic moves indicate the company's commitment to streamline operations and deliver efficient services to meet customer demands effectively.
State Street Corporation's Executive Vice Chairman and Incoming Chief Operating Officer, Mostafa Tahriri, highlighted this acquisition as a natural progression in their long-term partnership with HCLTech and underscored their pivotal role as technology partners. Improving client experiences through service advancements is the primary goal of this collaboration.
Despite structural changes, Shrinivasan Seshadri from HCLTech maintains a positive outlook on the IT partnership with State Street. Both companies have mutually beneficial ties, with State Street managing around $40 trillion in custody/administration assets and $3.7 trillion in assets under management until September 30, 2023. In comparison, HCLTech has reported an annual revenue of $12.9 billion for the same period.