HCL Tech Bags $2.1-Billion Technology Contract From Verizon

HCL Technologies Ltd. has won a $2.1-billion contract from Verizon Communications Inc. to manage the networks for the business customers of U.S.' biggest telecom operator by subscribers.

The deal, with a total contract value of $2.1 billion over the next six years, will see Verizon Business lead sales and development, while HCL Tech will take care of post-sale network rollout and support. Some Verizon employees will also move to HCL Tech.

The partnership combines Verizon’s networking power, solutions expertise, and scale with HCL Tech’s market-leading managed services capabilities to usher in a new era of large-scale wireline service delivery for enterprise customers, according to 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,”  HCL Tech's Chief Executive Officer C Vijayakumar said in the statement.

“Our data-driven service delivery, advanced network capabilities and frictionless customer interfaces combined with the unique strengths and resiliency of Verizon network will enable enterprises to drive better business outcomes and time to market."

Verizon's wireline business, which includes selling to business customers, has been a drag on its revenue for several years. The company is banking on HCL Tech’s IT services expertise to modernise its service delivery to enterprise clients, Verizon Business' CEO Kyle Malady said.

“IT/OT (information technology/operational technology) convergence is the future of data-centric business operations, and with the fast-accelerating pace of digitalisation, customers need a well-coordinated delivery framework to realise that future.”