HCLTech said on August 10 that it has signed a $2.1-billion deal with Verizon Business for providing managed network services to its global enterprise customers. This deal will be a shot in the arm for country's third largest IT services firm, following a sluggish April-June quarter performance. Share prices of the tech giant were up 3.7% at Rs 1176 in early trade on Friday morning.
As of Q1FY24, HCLTech's deal wins stood at $1.56 billion, a significant drop from its $2 billion plus order book in the previous seven quarters.
"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 informed the stock exchanges about the deal.
Under this collaboration, Verizon's networking power, solutioning, and scale will be combined with HCLTech's managed service capabilities to offer large-scale wireline service delivery for enterprise
customers.
Verizon will lead all "customer acquisition, sales, solutioning, and overall planning and development with its customers", whereas, HCLTech will lead post-sale implementation and ongoing support, the press release noted.
A select group of Verizon Business Global Customer Operations staff will also transition to HCLTech, to execute the collaboration, which will require tight coordination and balance of responsibilities at enterprise scale.
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Vijayakumar said, “Our data-driven service delivery, advanced network capabilities and frictionless customer interfaces combined with the unique strengths and resiliency of the Verizon network will enable enterprises to drive better business outcomes and time to market."
“HCLTech is a widely recognized industry leader for Managed Network Services, and with their IT service expertise and ongoing support of our enterprise networking deployments, Verizon Business can modernize 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,” added Kyle Malady, CEO, Verizon Business.
Interestingly, this deal will fall under the telecom and technology segments, which witnessed major ramp downs in the previous quarter.
Speaking to Moneycontrol last month, Vijayakumar had shared that the company has started building a very strong pipeline from the first quarter itself and the company is seeing an "all-time high" order book at present.
"We expect it to be a good booking in this quarter, which I think will help us continue to have better growth sequentially from here on, which leads us to meet the 6-8 percent (CC revenue growth) guidance for the year," he added.
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