HCL Tech set for pact with T-Systems

Indian software services major HCL Technologies is understood to be in advanced talks for a strategic alliance with T-Systems, one of Europe 's leading providers of information and communications technology (ICT).

T-Systems, a division of Deutsche Telekom Group, creates customised information technology (IT), telecommunications and convergence solutions for its global customers and recorded sales of E10.6 billion in 2003.

Headquartered in Frankfurt, Germany, the company has nearly 44,000 employees worldwide but is one of the few European majors which does not have an India story so far. With service costs spiralling it is reliably learnt that a senior team from T-Systems visited HCL Technologies facilities in Chennai a couple of months back.

Within the Deutsche Telekom group, T-Systems is responsible for serving major business accounts. The company has operations in more than 20 countries across the globe.

"HCL is looking at setting up an offshore development centre (ODC) for T-Systems, though it is not clear as to what will be the nature of work that will be executed out of the Indian operation when it begins," a source close to the deal said.

At this point in time it is not clear whether the ODC would be set up on a build operate transfer (BOT) model or not.

HCL has in the recent past been knocked off the public mindshare radar by competitors like Infosys, Wipro and Cognizant which have grown very aggressively both organically and inorganically. The deal if it comes through has the potential to become a money-spinner for HCL.