What slump? HCL gets $350 mn deal from Reader’s Digest

Delhi-based HCL Technologies Ltd has bagged one of its biggest deals yet in a slump-hit global IT market, from a company that publishes Reader’s Digest, a household name in the world of magazines. HT Correspondent reports.

Delhi-based HCL Technologies Ltd has bagged one of its biggest deals yet in a slump-hit global IT market, from a company that publishes Reader’s Digest, a household name in the world of magazines. The seven-year deal is valued at $350 million (about Rs. 1,800 crore), and involves cost benefits for the client.

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The deal could be proof that a slump in Western economies can provide new business opportunities for Indian IT and business process outsourcing (BPO) companies.

“This deal reinforces the fact how global sourcing helps economies to take advantage of talent, new opportunities which will help revive the current economic situation," Som Mittal, president, National Association of Software and Service Companies (Nasscom), said in a statement.

HCL will provide software applications development, infrastructure support and consolidation of applications to operations of Reader’s Digest Association Inc (RDA) across 45 countries through its delivery centres located in Poland, United States and India. The outsourcing deal will also involve HCL taking on some of RDA’s employees on its rolls.

An HCL spokesperson declined comment on whether this was the company’s largest deal yet.