HCLTech signs $2.1 billion managed network services deal with Verizon

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IT major HCLTech has signed a deal worth $2.1 billion with Verizon Business, the enterprise arm of US-based Verizon Communications, for providing primary managed network services (MNS) for the latter’s global enterprise customers.

HCLTech said it expects this deal to have a positive revenue impact over the next six years beginning in November 2023, with an estimated new total contract value of $2.1 billion over the term.

The partnership combines Verizon’s networking power, solutioning, and scale with HCLTech’s managed service capabilities to usher in a new era of large-scale wireline service delivery for enterprise customers.

“Verizon Business will continue to lead all customer acquisition, sales, solutioning, and overall planning and development with its customers. HCLTech will lead post-sale implementation and ongoing support,” the company said in a statement.

To execute the tightly-coordinated responsibilities at the enterprise scale, a select group of Verizon Business Global Customer Operations staff will transition to HCLTech.  

The partnership is expected to help customers navigate complex operating environments – across diverse locations, geographies, and devices – while incorporating new technologies into their stack, including 5G, SD-WAN and SASE capabilities.

“HCLTech is a widely recognised industry leader for managed network services, and with their IT service expertise and ongoing support of our enterprise networking deployments, Verizon Business can modernise our service delivery and simultaneously heighten our focus on helping customers incorporate next-generation technology like 5G, SD-WAN and SASE into their operations and their own customer offerings,” said Kyle Malady, CEO, Verizon Business.

“Our data-driven service delivery, advanced network capabilities and frictionless customer interfaces combined with the unique strengths and resiliency of the Verizon network will enable enterprises to drive better business outcomes and time to market. I am excited to welcome the incoming employees from Verizon Business Global Customer Operations and look forward to a successful and fulfilling journey together,” said C. Vijayakumar, CEO and MD, HCLTech.