HCL Tech signs 5 year deal with News Corp UK – India’s fifth largest company, HCL Tech has signed a five year deal with media conglomerate News Corp for organizing its data centers and IT all across UK newspapers such as The Sun, The Times and The Sunday Times.
According to the deal, HCL will be transforming News Corp’s UK subsidiary News International’s data centers and move its OS (Operating systems) to a lower cost solution. It will includes transformation projects like migrating operating systems to lower cost industry standard solutions, business continuity improvements and virtualization, consolidation and standardization of storage and servers.
In addition, as per the industry expertise, the deal has been nailed down to be in the range of $200-250 millions. The company officials have refused to reveal the size of the deal.
The senior VP and worldwide sales head at HCL Tech Infrastructure Services Division stated to Economic times that, “We will be managing and consolidating News International’s data centers and IT. The data centers will remain hosted in the UK. We will be managing them remotely from our facilities in India, and also onsite from UK. This will drive a reduction in their capex and result in significant savings for the client.”
Yesterday on Tuesday, according to the post announcement done in the afternoon, HCL Tech scrip had been arisen 0.8% on the BSE to close at Rs. 348.90. The Noida situated IT major arrogates to have more than 40 clients in the MPE i.e. media, publishing and entertainment verticals.
About 6.8% of HCL Tech revenues have been made up from the MPE vertical. All across the country, the company has one of the biggest remote infrastructure management functionalities among all IT vendors. In the month of March, this year HCL Tech had signed a 7 year, $350 million deal with Reader’s Digest Association, earlier to the US-based publishing major filed for a bankruptcy petition in August.
In addition, the company had also inked deal with Viacom that is the owner of brands like MTV Networks, VH1 and Nickelodeon for formulating online media content and platform. In the next 5 years, Mckinsey and Nasscom have jointly determined IT infrastructure management to gross by $28 billion.
After entering into a multi million pound, IT major HCL Tech has moved up 5 year technology infrastructure management and transformation engagement with news international, a British subsidiary of News Corporation. The stock traded at Rs. 357, high by Rs. 8, 2% on the BSE. It is also the 52 week high for the stock.
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