HCL Technologies signs five-year contract with Singapore Exchange

HCL Technologies has signed a five-year IT (information technology) infrastructure outsourcing agreement with Singapore Exchange (SGX) for S$110 million (Rs 366 crore).

The IT services company will provide SGX with infrastructure support and management services, including the exchange’s S$250-million (Rs 833 crore) Reach initiative, which aims to create the world’s fastest trading engine. The initiative was announced on June 3.

Though HCL will offer services like dual data centre to SGX in the first eight months, the contract will reach its steady state in February 2011, when it will manage the exchange’s data centre and infrastructure. Earlier collaboration and work on building up the IT management system would see HCL receiving revenue from the October-December quarter.

“It is a fixed price contract and revenue from the deal is expected to start kicking in from the October-December quarter, while the steady state revenues will flow in from the January quarter next year,” said Kiran Bhagwanani, senior V-P and worldwide head, system integration sales (infrastructure services division), HCL Tech.

Both companies previously worked together in the application space for projects of short duration. Infrastructure services contributed 22 per cent to HCL’s revenue for the quarter.

The execution of the contract would require more than a 100 people. The IT company has a 700-plus team at its regional headquarters and delivery centre in Singapore.