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Volkswagen Group to open IT centre in Pune with 1000 engineers

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Volkswagen group to open IT centre next month in Pune

Volkswagen the German Automobile group with 12 brands under its umbrella will be opening an IT development centre in Pune. The centre will opened next month as a measure to secure VW`s critical processes, technical knowledge, speed-up in house processes and lower the dependence on outsourcing.

The Regional competency centre in Pune will employ close to 1,000 engineers over the next 4 years. Volkswagen`s IT development centre will be headed by Milan Kumar and will provide IT support to all its group companies around the world. Many Global companies like Hyundai, Fiat, General Motors and Ford are increasing their investments in R&D and IT resources in India.

As per reports the IT centre will be officially inaugurated in November this year and 500 engineers would be employed initially. This centre is strategically located in Hinjewadi which will be an extension of the VW group`s Chakan plant. Siddharth Yadav, Regional CIO of Volkswagen Group for the Asia Pacific region mentioned that the aim is to secure group processes and technical knowledge by keeping them in-house.

Auto component manufacturer Bosch has its own team of 4,000 IT engineers in Bangalore, which works on critical system processes and takes care of the company`s development work globally. Volkswagen`s IT centre in Pune will start with the IT function initially and may eventually expand by doing critical development work for the group. IT is becoming increasing important in the automotive space right from the initial manufacturing stage to the final product development phase as information technology is the backbone on which processes are dependent.

The main reason for Volkswagen to start an in-house IT centre is because most of these processes were outsourced and vendors had a lot of knowledge and it was becoming increasingly difficult for Volkswagen to understand their own systems. Security was also a big concern for VW and the car manufacturer did not want key processes and technical knowledge to be with a vendor. Kumar stated that whenever a new vendor is brought on-board it took effort to train them as there was a knowledge gap. By doing these activities in-house VW will be able to reduce the time frame and would also be able to innovate and create new processes.

Source : ETAuto