March 2009
HCL Technologies (HCL), a global IT services provider, has entered a seven-year Total IT Outsourcing Services engagement with The Reader's Digest Association, Inc. (RDA), a global multi-brand media and marketing company. The value of the agreement is approximately $350 million over the contract term.
The scope of this complex transformational engagement includes applications development and infrastructure support across the applications stack of Oracle Universe, Open Technologies and Mainframe, Infrastructure support for network, security, storage, end user computing and data centers (DC) including disaster recovery services.
The scope also includes DC and Application Portfolio optimization to consolidate applications globally and refresh of legacy assets to modernize RDA's IT environment.
As part of this engagement, HCL will also rebuild and migrate RDA's mainframe environment in its New Jersey Data centre facility. Additionally, HCL will implement cutting-edge tools framework to provide business-aligned, unified, real-time visibility into the health of the IT environment.
This global solution is enabled through an integrated helpdesk in 14 languages including Portuguese, French, Russian, Czech, Spanish, Polish, Finnish, German, Hungarian, Bulgarian, Chinese, Romanian, Slovak and Turkish. These will be supported across 45 countries through HCL's global delivery locations in Poland, US and India and supported by a worldwide onsite support network. HCL will also re-badge a number of RDA employees on its rolls.
HCL's solution to RDA is based upon creation of globally focused business transformation Centers of Excellence (CoEs) for Global Fulfillment, Marketing, Digital Interactive and Shared Business Services leading to media, publishing and entertainment domain led innovation.
Al Perruzza, SVP global operations, IT and business redesign, RDA said, "IT is a key enabler for our business. We expect that HCL will bring down cost of operations significantly, while improving services and bringing cutting-edge technology and capabilities to transform our IT functionality and service. We look forward to a long relationship of mutual trust with them."
On the sourcing side, HCL will be taking over several existing IT contracts from RDA and will manage them over the engagement period. This will also involve providing Telecom Expense Management Services for its worldwide network through HCL's ControlPoint solution, providing the company another significant cost reduction avenue.
"RDA partnership is a unique service offering in which HCL blends all its outsourcing strengths–applications and infrastructure capabilities, industry knowledge, and global reach, to help RDA achieve fundamental transformation at the enterprise level," said HCL Technologies Corporate VP Sanjeev Nikore.
R Srikrishna, SVP, North America, HCL Technologies ISD said, "This is yet another landmark engagement not only for HCL, but the entire Indian IT industry. With its large scale, complex scope and global scale it re-asserts our capabilities in delivering truly transformational and globally delivered IT Services. We are pleased to have been selected by RDA and are working hard on flawless execution."
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