Saturday, January 21, 2006

Outsourcing deal -- HCL seals $335m with UK’s DSG International

According to the news acquired by Offshoreoutsourcingworld from Economic Times, the outsourcing pie is getting bigger for Indian software majors. HCL Technologies is learnt to have bagged India’s largest IT outsourcing deal so far. At $335m (Rs 1,500 crore) spread over five years, it betters the previous record of $260m set by Tata Consultancy Services (TCS) for its deal with ABN Amro.

The company, however, refused to confirm or deny the size of the deal from British specialist electrical retailer DSG International.

“We can’t share the numbers with you, but we know that it’s bigger than the one signed by TCS with ABN Amro Bank,” HCL Tech’s president Vineet Nayar told ET. According to him, the deal was won against stiff competition from other Indian IT majors.

Industry sources say that under the terms of the deal, DSG will transfer its complete IT team to HCL. “Over 350 people working at DSG’s IT department will now become our employees,” Mr Nayar said. Besides, HCL Tech plans to hire a minimum of 1,000 IT professionals at its existing Indian development centres in Noida and Chennai to service its newest clients.

According to the terms of the deal, HCL Technologies will provide systems development, application delivery, infrastructure support and maintenance services to DSG International, Europe’s leading specialist electrical retailer.
For more read here.

The article is sponsored by A-1 Technology Inc, dealing in offshore outsourcing and offshore software development.