HCL Tech inches up after arrangement with Xerox Corporation

HCL Technologies rose 0.55% to Rs 1,018.10 at 09:25 IST on BSE after the company entered into arrangement with Xerox pursuant to which Xerox will outsource certain global administrative and support functions.

The announcement was made after market hours yesterday, 18 March 2019.

Meanwhile, the S&P BSE Sensex was up 69.56 points, or 0.18% to 38,164.63

On the BSE, 2,012 shares were traded in the counter so far compared with average daily volumes of 65,000 shares in the past two weeks. The stock had hit a high of Rs 1,023.55 and a low of Rs 1,013.60 so far during the day. The stock hit a 52-week high of Rs 1,124.50 on 25 September 2018. The stock hit a 52-week low of Rs 880 on 5 June 2018.

HCL Technologies (HCL) has entered into a shared services arrangement with Xerox Corporation (Xerox) pursuant to which Xerox will outsource (subject to compliance with European works council consultation and employment regulatory requirements) certain global administrative and support functions, including, among others, selected information technology and finance functions (excluding accounting). The transaction revenue over the course of seven years will be $1.3 billion.

HCL is expected to make certain up-front and ongoing investments in software, tools and other technology to consolidate, optimize and automate the transferred functions with the goal of providing improved service levels and significant cost savings to Xerox.

HCL Technologies' consolidated net profit rose 2.8% to Rs 2605 crore on 5.6% increase in revenues to Rs 15699 crore in Q3 December 2018 over Q2 September 2018.

HCL Technologies (HCL) is a leading global technology company that helps global enterprises re-imagine and transform their businesses through digital technology transformation.

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