HCL To Roll Out 2G-3G For Alcatel Lucent

by CXOtoday News Desk    Aug 08, 2014

deal

HCL Technologies has bagged a $400 million deal from French telecom giant Alcatel Lucent for rolling out 2G/3G support services and R&D development. The seven-year deal is part of the latter’s ambitious ‘Shift Plan’ that was announced in 2013 to reposition itself from a telecom equipment provider to a specialist provider of IP networking and ultra-broadband access, says a TOI report.

Alcatel also said in its half yearly report that in conjunction with the targeted cost savings of its Shift Plan, it entered into a 7-year master service agreement with HCL Technologies regarding the transfer of a part of our R&D department for certain legacy technologies.

The company’s Shift Plan banks on IP networking and ultra-broadband access that would represent 85% of R&D investment in 2015. Alcatel has set a target to reduce 1 billion euros in the group’s fixed cost structure by bringing down sales, general and administrative (SG&A) expenses, refocusing on R&D, and improving operational efficiencies, the report mentions.

For HCL, the deal comes as a big win, after it bagged major contracts - a $400 million contract from Norway’s DNB Bank and a $500 million contract from food and beverage giant Pepsi for managing the companies’ IT infrastructure and application operations in a span of only a few months.

Experts believe, the IT major has won major contracts from Europe, indicating a growing appetite for offshoring in the region. The region which was more inward looking earlier, is now relying on this model with increased competition and cost pressures.