Established IT company HCLTech secured a contract for engineering services from Volvo Group, a Swedish truck manufacturer, as announced on Thursday by the third-largest exporter of software services.

In recent months, a potential Volvo project valued at more than $1 billion was nearing completion of negotiations between HCLTech and its bigger competitor, Infosys, according to reports. Nevertheless, the deal that has been revealed is expected to be considerably smaller in scale.

“Volvo Cars has chosen HCLTech as one of its strategic suppliers for engineering service. This agreement significantly expands HCLTech’s role to cover the delivery of end-to-end engineering solutions at scale,” HCLTech says.

In 2016, HCLTech, the third largest IT company in the country, secured a deal worth over $1 billion with the Volvo Group, which included the acquisition of Volvo’s external IT services division for approximately $138 million (around Rs 895 crore at the time).

This acquisition was projected to generate $1 billion in revenue over five years. Meanwhile, Infosys, the second largest software services exporter, collaborates with Polestar, a subsidiary of Volvo, on various industrial engineering services.

In addition, HCLTech established an automotive center of excellence in Gothenburg, leveraging the expertise of the Volvo team to serve its global automotive and manufacturing clientele.

The strategic partnership will enable the company to support Volvo Cars’ future engineering objectives from its automotive Centre of Excellence in Gothenburg, as well as through its global offshore and nearshore delivery centers.

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“We are proud to broaden our relationship with Volvo Cars at such a pivotal moment in its transformation journey. HCLTech is investing substantially in nextgen automotive engineering. This strategic engagement reflects our commitment to delivering high performance, future-ready engineering solutions that help shape the mobility of tomorrow,” says Pankaj Tagra, HCLTech, corporate vice president, manufacturing and allied industries, Europe.