HCLTech Secures $2.1 Billion Deal with Verizon Business for Managed Network Services

• ByStartupStory     |    August 11, 2023

HCLTech, a prominent IT services company, has successfully clinched a substantial $2.1 billion contract from Verizon Business, spanning the upcoming six years. In a communication to stock exchanges, HCLTech stated, “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”

The scope of the contract involves HCLTech delivering managed network services (MNS) to Verizon Business, a US-based technology and communications enterprise. Within the terms, Verizon Business will lead sales, solution development, and customer acquisition, while HCLTech will oversee post-sale implementation and continuous support.

This significant achievement propels HCLTech into the ranks of its peers, Tata Consultancy Services (TCS) and Infosys, who have also secured major IT contracts. The deal is poised to invigorate HCLTech’s performance, following a subdued showing in the initial quarter of FY24.

Highlighting the collaboration, HCLTech emphasized that Verizon Business’s extensive global reach coupled with localized enterprise presence, along with HCLTech’s digitally optimized MNS platforms, will offer customers a versatile networking foundation to embrace new technologies and drive enhanced operational efficiency. C Vijayakumar, CEO and Managing Director of HCLTech, expressed, “Managed network services are central to our business, and we take pride in partnering with Verizon Business to spearhead MNS across their network deployments, modernization, and private enterprise operations.” Kyle Malady, CEO of Verizon Business, echoed this sentiment, stating, “HCLTech is a widely recognized industry leader for Managed Network Services, and their IT service expertise, combined with our ongoing partnership, will empower Verizon Business to modernize service delivery and intensify our focus on assisting customers in integrating next-generation technologies like 5G, SD-WAN, and SASE into their operations and customer offerings.”

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