HCLTech has announced to extend its leadership in the telecom services market with Hewlett Packard Enterprise (HPE), carving out certain Communications Technology Group (CTG) assets to HCLTech.
Through this arrangement, HCLTech will acquire industry-leading intellectual property (IP), engineering and research and development (R&D) talent and client relationships with top global communication service providers (CSPs).
HCLTech will gain a portfolio of service offerings that includes industry-leading IP, solutions, and systems integration around business support systems (BSS), network applications, service cloudification and data intelligence. These capabilities will also complement HCLTech’s existing highly digitised services with artificial intelligence (AI), internet of things (IoT), and data-driven models, enhanced efficiency, frictionless integration, and an end-to-end partner ecosystem. In addition, HPE will retain the part of its former CTG business focused on operations support systems (OSS).
As part of this agreement, approximately 1,500 employees of CTG with telecom industry experience will transfer to HCLTech in various countries including Spain, Italy, India, Japan and China to service clients globally.
Furthermore, this transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in six to nine months.
Commenting on the announcement, C Vijayakumar, chief executive officer (CEO) and managing director, HCLTech, said, “With this transaction and our planned strategic partnership with HPE, we are strengthening our telecom practice to address the rapidly expanding and transforming global telecom market. With the incoming top engineering talent and industry-leading IP from the CTG group of HPE, we are adding significant capabilities and direct relationships with global CSPs that include 20 of the top 30, accelerating our growth strategy in the global telecom industry. As we chart our course forward, we envision an even larger strategic partnership with HPE, paving the way for strong growth through innovation, joint integrated propositions and transformation services.”
Meanwhile, Antonio Neri, president, and CEO, HPE, said, “At HPE, we continually refine and innovate our portfolio to meet the dynamic needs of our customers. HPE is pleased to have identified HCLTech as the right partner to support the ongoing transformation of global telecom, media, and technology companies. In joining HCLTech, our CTG will become part of a strong partner that understands and appreciates the significant heritage of our CTG business, its strategy and its potential for the future.”
