HCL bags new order

In an ongoing recession, for an IT company to bag an order is really a good news.

In what is being termed as a landmark deal in these tough market conditions for IT companies, HCL Technologies has bagged a seven-year IT outsourcing services contract worth $350 million from The Reader's Digest Association Inc (RDA), a global multi-brand media and marketing company. The complex transformational engagement will cover the end-to-end IT landscape of RDA from IT infrastructure to applications.

Applauding the win, Som Mittal, president of the IT industry body, Nasscom said, "We congratulate HCL for this landmark engagement". Mittal added, "This deal reinforces the fact how global sourcing helps economies to take advantage of the talent and new opportunities, which will help revive the current economic situation."

The recessionary environment in many economies of the world, especially the US and Europe, has forced global corporations to squeeze their IT spending with a complete freeze on budgets in certain cases. With the situation worsening, Indian IT companies are coming by very few large-size contracts along with significant pricing pressures on existing contracts. Apart from the sheer size of the deal, the present market scenario adds to the significance of the deal.