HCL Technologies has sized a deal worth $400 million with a French telecommunications giant Alcatel Lucent. As the part of the deal HCL will garner support to Alcatel for rolling out 2G and 3G services and R&D development. The deal comes with the span of seven years and also furthers the plan of the French company to reposition itself from a telecommunications equipment provider to a specialist provider of IP networking and ultra-broadband access.
Commenting about the deal, Alcatel stated that, this seven year deal will help the company and will make it easy for us to transfer a part of our R&D department for certain legacy technologies. In its financial report, the French company also says, “As part of an initial three year transition and transformation phase, we are committed to restructuring those activities, which is estimated to cost 29 million. Overall, Alcatel-Lucent is committed, under this agreement, to purchase approximately 297 million (about $400 million) of HCL services until 2021.”
For HCL it is a great period as the company has also signed great deals in the past few months. The deals include a $400 million contract from Norway’s DNB Bank; under this deal the company will be managing the IT infrastructure and application operations of the bank. Along with this it also entered into an exclusive deal worth $500 million with the beverage giant Pepsi.