TCS expands in the Nordics with new Pace Studio in Sweden

Tata Consultancy Services (TCS), the largest IT service provider in India, has inaugurated its latest TCS Pace Studio in Stockholm, Sweden, aimed at providing customers in the Nordic region—comprising Sweden, Norway, Finland, and Denmark—with exclusive access to its innovation ecosystem.

This innovation hub and research centre will facilitate enterprises in exploring cutting-edge technological advancements and implementing them on a large scale to enhance their digital transformation efforts, the IT firm said in a regulatory filing on Tuesday.

Situated within the Epicenter House of Innovation, a collaborative space housing over 600 technology firms and entrepreneurs, the TCS Pace Studio Stockholm is strategically positioned to address the business challenges and objectives of the local market. TCS Pace Studios are specifically designed for growth markets characterised by dynamic innovation ecosystems.

As the fourth TCS Pace Studio globally and the first in the Nordic region, the Stockholm facility contributes to the extensive TCS Pace innovation ecosystem, which spans key cities around the world. The TCS Pace network includes three additional studios located in Riyadh, Sydney, and Letterkenny, along with seven TCS Pace Ports situated in Tokyo, Amsterdam, New York, Pittsburgh, Toronto, London, and Paris.

In March, TCS secured a multi-million dollar agreement with Nuuday, Denmark's leading digital connectivity provider. Additionally, in February, the company collaborated with Enento Group, a provider of credit and business information in the Nordics, to enhance its IT applications, cloud services, digital workplace, and IT security for more resilient business operations.

With nearly 20,000 employees in the Nordic countries, TCS is also one of the region's largest clients. In April, TCS was recognized as the top IT service provider for customer satisfaction in the Nordics, according to Whitelane Research’s survey of leading IT spending organisations. This marks the 15th consecutive year that TCS has achieved the highest ranking in this survey.

Leading Indian IT companies, such as Infosys, HCLTech, Wipro, and Tech Mahindra, are significantly enhancing their operations in the Nordic region. The IT services market in the Nordic countries has experienced growth, rising from $24.4 billion in 2018 to $29.5 billion in 2023.

These companies are establishing a stronger foothold in this area by creating centres, developing localised strategies, and recruiting a dedicated workforce within these nations. Infosys employs over 2,500 individuals in the region and secured a five-year digital transformation contract valued at $454 million with Danske Bank in June 2023. Wipro has a workforce exceeding 2,000, while HCLTech employs approximately 1,600 individuals in the region as of December 2023. In September, Tech Mahindra unveiled a new local innovation centre in Espoo, Finland, following a period of consistent growth in the area.

Analysts attribute this increase in demand from Nordic clients to the competitive pricing, the capacity to serve as long-term strategic partners in digital transformation, and the high-quality technological services offered by Indian IT service providers.