Verizon Business inks technology deal with HCLTech valued at $2.1 bn

Verizon Business announced a global partnership making HCLTech its primary managed network services collaborator in all networking deployments for enterprise customers

Verizon Business on Thursday announced a strategic global partnership making HCLTech its primary managed network services collaborator in all networking deployments for enterprise customers in a mega deal valued at USD 2.1 billion over six years.

In order "to execute the tightly-coordinated balance of responsibilities at enterprise scale", a select group of Verizon Business Global Customer Operations staff will transition to HCLTech, a release said.

"HCLTech is pleased to announce the signing of a new mega deal with a Global 100 corporation today. We expect 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 USD 2.1 billion over the term," HCLTech said in a separate filing.

Meanwhile, the joint release said that the partnership combines Verizon's networking prowess, 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, solutions, and overall planning and development with its customers.

HCLTech will lead post-sale implementation and ongoing support.

"The partnership will offer customers a best-in-class MNS portfolio, a highly digitised experience with data-driven service models, enhanced efficiency and lifecycle management with frictionless interface, a broad end-to-end partner ecosystem, and joint innovation on an integrated platform," the release said.

Verizon Business's global reach and localised enterprise presence alongside HCLTech's digitally optimised platforms for MNS aim to give customers a flexible networking framework to build out with new technology and drive more efficient operations.

It explained that customers can better control and scale their consumption of network services, better incorporate their broader ecosystem of technology partners, converge informational and operational technology (IT/OT) undertakings, and generally become more agile in accommodating ever changing technology needs.

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, Kyle Malady, CEO of Verizon Business said.

Terming managed network services as core to the company's business, C Vijayakumar, CEO and Managing Director of HCLTech said, "we're proud to collaborate with Verizon Business to lead MNS in all of their network deployments, modernisation and operations for private enterprise.