HCL adds Rs 910 cr Skandia UK deal to kitty

By siliconindia   |   Thursday, 21 December 2006, 18:30 IST
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New Delhi: In yet another notch-up HCL Technologies today announced a Rs 910 crore multi-service, contract with Skandia UK. This five-year contract takes its cumulative order position in this calendar year to over $600 million (around Rs 2,730 crore). According to the new deal, provider of long-term savings solutions, Skandia UK will outsource application optimization (including development, maintenance and support) and remote infrastructure management to HCL. The deal enables Skandia UK to retain all customer-facing activities. Significantly, HCL’s new businesses now account for 17 per cent of its total revenue while the industry standard is around 8 per cent. Vineet Nayar, President, HCL, said: “This deal is the latest in a series of large-scale wins for us. Like DSG International ($330 million), Autodesk and Teradyne, this contract with Skandia UK is part of our ‘Blue Ocean’ strategy, which has helped us deliver value rather than volume and concentrate on customer relationships. We are not concentrating on full time equivalent (FTE) employee rates but on output-based pricing and this deal is a reflection of that strategy.” The deal will accelerate Skandia UK’s move to a Service Oriented Architecture (SOA) approach. HCL will play the enabling role in Skandia UK’s initiative to make its IT landscape a world class, agile infrastructure that will make the savings provider more competitive. The new architecture will deliver productivity improvements and gains guided by an extensive service level agreement.

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