HCL Tech, CSC join hands to target applications services mkt

IT firms HCL Technologies and CSC today announced a strategic partnership, which will address the growing opportunities in the applications modernisation services market globally.
According to research firm Gartner's 2014 market outlook for IT services, the addressable market for applications services is estimated at USD 210 billion this year.
The joint partnership has already started operations with telecom major AT&T as their first client.
"We have joined hands with CSC on three core pillars, which are the application modernisation, enablement of cloud platform and other technologies," HCL Technologies President and CEO Anant Gupta said here.
The partnership seeks to address the substantial market opportunity created by the need for enterprises to modernise their applications and transition to the cloud, he added.

Commenting on the development, CSC President and CEO Mike Lawrie said: "It is a recognition that IT service providers and delivery models must evolve from traditional tools and processes to more rapid application innovation, enabling businesses to compete in an ever-changing world."

HCL and CSC will create an application modernisation delivery network to enable enterprises to shift from legacy technologies to a cloud-enabled platform, he added.
The first delivery centres will be launched in Bangalore and Chennai. These delivery centres will lower the risks and costs for clients transitioning to the cloud.
On the delivery centres, Lawrie said: "They will be built on existing structures. We will be re-purposing existing facilities."

The offering will be enhanced with vertical specific initiatives starting with Banking & Financial services through the creation of a banking centre of excellence, which will be at CSC's centre in Dallas, Texas (the US).
As per terms of the agreement, both companies intend to share equally all cloud application modernisation revenue and direct costs.
With a new governance board providing oversight, the partners will share dedicated employees and technologies, as well as production and development work.
As part of the partnership, HCL will white label CSC's BizCloud, industry leading, highly secure and highly flexible private cloud offering for the enterprise.

HCL and CSC will benefit from the increased scale of this offering, expanded coverage in new markets and incremental revenue opportunities.
US-based CSC, which employs about 81,000 people, reported a revenue of USD 13.5 billion for the 12 months ended September 27, 2013.
HCL Technologies is India's fourth largest software services exporter with revenues of about USD 4.8 billion and employs about 87,196 people.