Hitachi Digital Services and specialty chemicals manufacturer allnex have expanded their strategic partnership with the establishment of a joint IT Global Business Services (ITGBS) capability in Pune. According to reports from Business Standard, the milestone was marked during a visit by allnex executives to Hitachi Digital Services' Pune Delivery Center, where leaders from both organizations participated in ceremonial activities before engaging with employees and strategic discussions with Hitachi leadership. The visit featured a fireside discussion moderated by HFS Research Executive Research Leader Ashwin Venkatesan, bringing together allnex Global CIO Jilles Eissen, Head of Digital Transformation & AI Innovations Leader Naga Setty, Hitachi Digital Services COO Raj Busani and Chief Delivery Officer NS Kumar to discuss the strategic priorities behind the SAP S/4HANA transformation, AI adoption, the joint ITGBS capability and allnex's broader digital transformation roadmap.
The partnership addresses allnex's strategic objectives to migrate from SAP ERP Central Component (ECC), which is approaching the end of mainstream support, to SAP S/4HANA. As reported by Business Standard, the transformation extends beyond a technology upgrade to a business transformation program focused on improving operational performance, strengthening enterprise data and enabling greater business value through standardized processes. The modernized ERP environment will improve cross-site data consistency and standardize core business functions across finance, supply chain and manufacturing while reducing technical debt. According to allnex, the second strategic objective is establishing a standardized enterprise platform capable of supporting future AI-driven operations across the company's global manufacturing footprint. The company already applies AI in areas such as Order Entry automation, Shop floor Safety and many other areas, while future initiatives are expected to extend AI deeper into manufacturing, research and development, and enterprise operations.
According to Business Standard, allnex executives described the migration as a business transformation program focused on improving operational performance, strengthening enterprise data and enabling greater business value through standardized processes. Jilles Eissen, allnex Global CIO, emphasized that while allnex has been on its AI journey for seven years, realizing the next phase of AI adoption requires stronger enterprise foundations. He explained that organizations must first establish end-to-end business processes and reliable enterprise data before they can fully capitalize on generative and agentic AI, using the analogy that "you can't cook AI in a dirty kitchen." Naga Setty, Head of Digital Transformation & AI Innovations Leader, highlighted that allnex's digital transformation strategy begins with business value rather than technology, focusing on enabling revenue growth, improving equipment efficiency and delivering better outcomes for customers. He noted that the foundational elements are critical, with process excellence, data quality and a AI centric ERP platform being the key building blocks.
As reported by Business Standard, Naga Setty, Head of Digital Transformation & AI Innovations Leader, highlighted the importance of the joint ITGBS capability in Pune. Rather than building an internal technology organization independently, allnex chose to establish a co-located operating model with Hitachi Digital Services that brings teams from both companies together to develop expertise in allnex's business processes and systems. The co-location is expected to improve productivity significantly through collaborative development of business process expertise. Naga explained that their plan is to build this team within ITGBS in Pune, with the team from Hitachi and team from allnex working together. The location was selected because of its close proximity to allnex India Headquarter and Mahad Plant, Hitachi Digital Services' established SAP expertise in the city and access to specialized engineering talent.
According to Business Standard, Hitachi Digital Services is leading the transformation to a single SAP S/4HANA instance across allnex's global operations, with the SAP transformation program expected to be completed in 2027. The company is drawing on experience from more than 40 SAP S/4HANA transformation programs completed over the past two and a half years, including automated assessment tools, code remediation, industrialized migration practices and specialized delivery teams. Raj Busani, COO of Hitachi Digital Services, noted that successful SAP transformation requires balancing customer objectives, technical viability and implementation feasibility while ensuring business users are prepared for change. He explained that the partnership reflects a broader commitment to long-term value creation rather than a traditional customer-vendor engagement, with both organizations sharing priorities around growth, operational performance, employee experience and safety. NS Kumar, Chief Delivery Officer, emphasized that the S/4 transformation is about the end users who are going to adapt to the change, noting that the company approaches each migration by understanding the customer's business objectives before evaluating the technical landscape, organizational readiness and implementation timeline.
