|By Elizabeth White||
|January 16, 2014 08:30 AM EST||
HCL Technologies and CSC have formed a strategic partnership to address the substantial market opportunity created by the need for enterprise clients to modernize their applications and transition to the cloud.
"Our strategic partnership with HCL is a new and innovative approach to delivering next- generation IT services which enable enterprises to achieve greater operational agility and significant reductions to operating costs," said Mike Lawrie, CSC's President and Chief Executive Officer. "It is a recognition that IT service providers and delivery models must evolve from traditional tools and processes to more rapid application innovation, enabling businesses to compete in an ever-changing world."
HCL and CSC will create an application modernization delivery network to enable enterprises to shift from legacy technologies to a cloud-enabled platform. The first delivery centers will be launched in Bangalore and Chennai. These delivery centers will lower the risks and costs for clients transitioning to the cloud.
The joint application modernization offering will be enhanced with vertical specific initiatives starting with banking and financial services through the creation of a banking center of excellence. The partnership will be standardizing the delivery of modernized applications and enable them to be brokered onto any cloud environment, using platforms such as CSC's ServiceMesh.
According to Gartner's 2014 Market Forecast for IT Services the addressable market for applications services is $210 billion in 2014.1 The strategic partnership addresses what we believe to be one of the fastest growing segments of the applications services market.
"We are pleased to partner with CSC. The company's strong technology portfolio and client base coupled with HCL's robust system integration capabilities will be a formidable combination in the application modernization market," said Anant Gupta, President and Chief Executive Officer of HCL Technologies. "Application modernization forms the first phase of HCL's Digital System Integration strategy. Enterprises today view digitalization as a route to business model transformation. Organizations have not been able to accrue the potential benefits from digitalization, as they are shackled by legacy technologies."
CSC's next-gen technology solutions coupled with the technology consulting, systems integration and global delivery capabilities of HCL will offer a new value proposition in the market. This value proposition will create a roadmap for bringing legacy products into next gen solutions and execution excellence leading to an optimized business case for application modernization for customers.
According to the terms of the agreement, both companies intend to share equally all cloud application modernization revenue and direct costs. With a new governance board providing oversight, the partners will share dedicated employees and technologies, as well as production and development work.
As part of the partnership, HCL will white label CSC's BizCloud, industry leading, highly secure and highly flexible private cloud offering for the enterprise. HCL and CSC will benefit from the increased scale of this offering, expanded coverage in new markets and incremental revenue opportunities.
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