HCLTech bags $2.1B deal from Verizon Business
As part of the deal, which is spread over six years, HCLTech will provide managed network services for Verizon Business.
IT services company HCLTech has bagged a $2.1-billion contract from Verizon Business for the next six years.
In a notice to the stock exchanges, HCLTech said, “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 will provide managed network services (MNS) for Verizon Business, a technology and communications company based out of the United States. As part of the contract, Verizon Business will lead sales, solutioning, and customer acquisitions, while HCLTech will take care of post-sale implementation and ongoing support.
With this deal, HCLTech joins its peers Tata Consultancy Services (TCS) and Infosys in winning large IT contracts. It should provide a boost to HCLTech, which registered a lacklustre performance for the first quarter of FY24.
Verizon Business’s global reach and localised enterprise presence, along with HCLTech’s digitally optimised platforms for MNS, will give customers a flexible networking framework to build with new technology and drive more efficient operations, HCLTech said in a statement.
“Managed network services is core to our business, and we’re proud to collaborate with Verizon Business to lead MNS in all of their network deployments, modernisation, and operations for private enterprise,” said C Vijayakumar, CEO and Managing Director, HCLTech.
“HCLTech 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 heighten our focus on helping customers incorporate next-generation technology like 5G, SD-WAN and SASE into their operations and their own customer offerings,” said Kyle Malady, CEO, Verizon Business.
Edited by Swetha Kannan
