HCL Tech Wins $2.1-Billion Deal From Verizon Business, Shares Jump Over 3.8 Per Cent
Following the deal on Thursday, share prices of HCL jumped over 3.8 per cent at Rs 1177.90 apiece, on the BSE on Friday morning
Indian IT services firm HCL Tech has said that it has signed a strategic global deal with Verizon Business for providing managed network services to its global enterprise customers. The deal valued at $2.1 billion will span over six years. According to a release by HCL Tech, in order "to execute the tightly-coordinated balance of responsibilities at enterprise scale", a select group of Verizon Business Global Customer Operations staff will transition to the Indian tech giant.
Following the deal on Thursday, share prices of HCL jumped over 3.8 per cent at Rs 1177.90 apiece, on the BSE on Friday morning.
"HCL Tech is pleased to announce the signing of a new mega deal with a Global 100 corporation today. We expect this deal to have a positive revenue impact over the next six years beginning in November 2023 with an estimated new total contract value of $2.1 billion over the term," HCLTech said in a separate filing.
Verizon Business will continue to lead all customer acquisition, sales, solutions, and overall planning and development with its customers. HCL Tech will lead post-sale implementation and ongoing support. The joint release said that the partnership combines Verizon's networking prowess, solutioning, and scale with HCLTech's Managed Service capabilities "to usher in a new era of large-scale wireline service delivery for enterprise customers.
C Vijayakumar, CEO and Managing Director of HCL Tech, said, "We're proud to collaborate with Verizon Business to lead MNS in all of their network deployments, modernisation and operations for private enterprise."
According to the HCL release, "The partnership will offer customers a best-in-class MNS portfolio, a highly digitised experience with data-driven service models, enhanced efficiency and lifecycle management with frictionless interface, a broad end-to-end partner ecosystem, and joint innovation on an integrated platform."
Verizon Business's global reach and localised enterprise presence alongside HCLTech's digitally optimised platforms for MNS aim to give customers a flexible networking framework to build out with new technology and drive more efficient operations. "HCL Tech is a widely recognised industry leader for Managed Network Services, and with their IT service expertise and ongoing support of our enterprise networking deployments, Verizon Business can modernise our service delivery and simultaneously heighten our focus on helping customers incorporate next-generation technology like 5G, SD-WAN and SASE into their operations and their own customer offerings," Kyle Malady, CEO of Verizon Business said.
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