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HCL signs $500 mn software services contract with Merck

HCL signs $500 mn software services contract with Merck
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First Published: Tue, May 04 2010. 10 43 PM IST

Photo: Bloomberg
Photo: Bloomberg
Updated: Tue, May 04 2010. 10 43 PM IST
New Delhi: Information technology (IT) firm HCL Technologies Ltd has signed a $500 million (Rs2,230 crore) contract to provide a range of software services to pharmaceutical firm Merck Sharp and Dohme Corp.
HCL will support the US-based firm’s remote infrastructure management, and offer engineering, business and knowledge process services to the pharma firm in the five-year deal, executives from both companies said.
HCL first signed a contract to provide IT services to Merck in 2004, which was renewed in 2007 to include application development and remote infrastructure management.
Photo: Bloomberg
The new contract is more broadbased, focusing on managed services and integration, said Prem Kumar, senior corporate officer and president of HCL’s banking, financial services and insurance and healthcare division.
Besides India, HCL will provide support services to the pharma company from some 20 global locations, including the US, Poland, China and Brazil.
In the US, HCL’s delivery centre at Raleigh, North Carolina, will play the largest role. “The Raleigh centre currently has a strength of 500 people, which will be further increased,” Kumar said.
“For five years, Merck has leveraged HCL’s extensive expertise in life sciences and healthcare to streamline operational efficiencies and consolidate its IT portfolio,” said Richard G. Branton, vice-president of application services, Merck Sharp and Dohme.
“As we continue to leverage global delivery services to meet our business imperatives, we have chosen HCL as our strategic partner,” he said.
Life sciences, which includes pharma clients, is one of HCL’s fastest growing divisions. It contributed 7.5% to its revenue during the three months ended 31 March, a 43.7% growth over last year.
It is after a long gap that HCL has signed a deal of this magnitude. Big-ticket deals had virtually dried up for the IT services industry during the slowdown.
Viral Thakker, executive director at consultancy firm KPMG, said large deals have started making a comeback as the global economy revives. “We are working on a couple of them for our clients, so they are definitely back in the picture,” he said.
surabhi.a@livemint.com
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First Published: Tue, May 04 2010. 10 43 PM IST