IT firm HCL Technologies said on Monday that it has entered into a six-year, multi-regional data center services and transformation engagement with Xerox Corporation. While the company has not disclosed the value of the deal, reports suggest that Xerox will pay HCL $100 million over six years. Xerox has been restructuring to cut costs and has laid off 4,900 workers last year.
The contract will span mid-range services, business continuity and disaster recovery for Xerox's information management operations. As part of the agreement, HCL will manage data center hosting and migration, virtualization, consolidation and storage architecture services across North America and Europe. In addition, HCL will provide architecture and consulting services for new technology and system design, adoption and lifecycle improvement.
HCL will use its business service management process to centralize and standardize Xerox's data centers' infrastructure. The engagement will also leverage HCL's unique zero-business disruption based transition framework to ensure an accelerated risk-free transition across distributed regional data centers.
Data center environments are the heart of our business operations and we look to partner with companies that can manage our centers and take them to the next level.
HCL has demonstrated their leadership position in delivering global, transformational infrastructure services, said John McDermott, chief information officer, Xerox.
Commenting on the engagement, Shami Khorana, Sr. Corp VP and President, HCL America Inc (a wholly owned subsidiary of HCL), said, Our engagement with Xerox is a testament to HCL's competencies and capabilities which continue to help the customer in its IT transformation by providing innovative IT services scalable to their needs. We are proud of this association and are committed to creating exponential value to enable accelerated returns for Xerox.
According to reports, HCL has also bagged a five-year IT services contract worth around $170 million or Rs.848 crore from software giant Microsoft. HCL is yet to make an official announcement.
On the Bombay Stock Exchange, HCL Technologies was last trading at Rs.114.95, up 7.68% over the previous close on a volume of 5.24 lakh shares so far during the day compared to a 2-week daily average volume of 1.87 lakh shares.
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