HCL Tech bags IT transformation contract from New Zealand's Fonterra

The IT major will bring together Fonterra's IT infrastructure services under one umbrella.

HCL Technologies on Tuesday announced a new large contract with New Zealand dairy co-operative Fonterra to modernise and manage the entire technology infrastructure Fonterra employees around the world use every day.

The multi-year partnership with HCL Technologies will consolidate Fonterra's technology suppliers and bring together the Co-op's IT infrastructure services under one umbrella. The technology edge services provided by HCL will enhance Fonterra's employee experience, to navigate through their business operations.

This partnership will also extend HCL's New Zealand presence to three offices within the country and will bring around 60 new jobs to the Waikato region, as the local support services for Fonterra employees will be based at its Hamilton Delivery centre.

The partnership will reinforce HCL's focus in supporting the local New Zealand IT ecosystem by investing in local skills and partnering with regional companies and tertiary education groups to develop the local expertise to fill these roles over the coming years

Fonterra is a global dairy nutrition company owned by 10,000 farmers and their families.

On a consolidated basis, HCL Tech's net profit rose 8.59% to Rs 2,944 crore on a 3.46% rise in net sales to Rs 18,135 crore in Q3 December 2019 over Q2 September 2019.

HCL Tech is engaged in providing a range of software development services, business process outsourcing services and information technology (IT) infrastructure services. The firm's segments include software services, infrastructure management services and business process outsourcing services.

Shares of HCL Technologies fell 1.04% to Rs 607. In the past one month, the scrip rose 1.17% to its current market price of Rs 605.85.

On the technical front, the stock's RSI (relative strength index) stood at 55.415. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was currently trading between its 10-day moving average (DMA) placed at Rs 608.72 and its 20-DMA placed at Rs 603.24.

Powered by Capital Market - Live News