Nestle sets up IT center in India as part of digital focus

Nestle has set up Nestle Global Services in Bengaluru, India to provide IT services to its entities in over 45 countries across Asia, Oceania and Africa and to complement its network of IT hubs around the globe.
Nestle digital transformation
The food major said that it expects the IT center to be fully operational by the end of next year and will have a specialised IT team of about 150 people at the center. Nestle does not reveal its IT spending for its business.

“The Nestle Global Services India is the next step in the Group’s IT evolution journey to build the right skills and capabilities across the world, to be able to support Nestle’s digitalisation and rapidly changing business needs,” said Chris Wright, Head of Information Technology and Chief Information Officer, Nestle.

In the past, the Swiss food major had set up Nestle Research and Development (R&D) centre at Manesar in Haryana that focuses on product innovation and development.

Nestle earlier said it expects to nearly double its e-commerce sales to 25 percent of its group total by 2025 by stepping up marketing and technological investments, Reuters reported.

Nestle will push sales of its products to consumers directly via its own online channels, or direct to consumer, Nestle CEO Mark Schneider said.

“We plan to take e-commerce sales from about 13 percent in 2020 to 25 percent by 2025,” Bernard Meunier, head of Nestle’s strategic business units and marketing and sales, said at a virtual investor summit.

This will be achieved by increasing digital marketing investment to 70 percent by 2025 from 47 percent in 2020. E-commerce sales growth will be driven by markets such as the United States, Europe and China.

Nestle’s sales in 2020 were 84.34 billion Swiss francs ($90.71 billion). E-commerce sales represented 14.1 percent of the total in the first nine months of 2021, compared with 12.8 percent in the same period in 2020.