Adoption of Windchill Product Lifecycle Management Focus of PTC and ITC Infotech Expansion of  20-Year Alliance  

By Craig Resnick

Acquisition or Partnership

PTC and ITC Infotech announced an agreement to help accelerate customer digital transformation initiatives focused on the adoption of PTC's Windchill product lifecycle management (PLM) software as a service (SaaS). ITC Infotech will acquire a portion of PTC's PLM implementation services business and create a new Product Lifecycle Managementbusiness unit of ITC Infotech, called DxP Services, that will combine PLM professional services experts from both companies. The two companies will work together to deliver 'in-flight' Windchill implementation services for a broader set of existing PTC customers while also enabling a growing number of customers to move from their existing, sometimes highly-customized on-premises implementation of Windchill to next-generation, best-practice SaaS.

Across all aspects of business, digital transformation and SaaS adoption continue to get more mainstream, with forecasts showing that over half of all commercial software is expected to be sold as SaaS this year. In the manufacturing industry, the SaaS adoption curve continues to accelerate, with much of that growth initially driven by the COVID pandemic beginning in early 2020. To meet this fast-emerging market need, PTC is investing heavily to bring its entire product portfolio to the cloud via its PTC Atlas SaaS Platform. With this new agreement, PTC and ITC Infotech will bring together professionals from both companies into a unified team dedicated to creating, and jointly offering, the tooling and methodologies required to expedite the transition to SaaS.

ITC Infotech has been partnering with its customers and helping them change the way they consume technology, including embracing SaaS. The firm has helped its customers better understand the innovation and value that is realized at the intersection of technology, domain, and industry, which has helped the company to become an important partner to these customers. Increasingly considered a backbone of digital transformation, PLM implementation for industrial companies is one of ITC Infotech's core competencies, with the firm having delivered hundreds of global PLM engagements. The depth of domain expertise, the longevity of collaboration between the two companies, and the fact that many PTC PLM implementation experts will be joining DxP Services, will help to provide for a smoother transition for customers as the new business unit commences operations. Over time, DxP Services expects to expand the range of services it provides.

Subject to applicable closing conditions, the transaction is expected to be completed in PTC's fiscal Q3 (second calendar quarter of 2022). 

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