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Reader’s Digest Association signs a $350mn+ Total IT Outsourcing engagement with HCL

Published Date: 
Feb 16, 2009
Sunnyvale/London/Noida/Dubai/Sydney, March 16, 2009 – HCL Technologies Ltd. (HCL), leading global IT services provider, has entered into a 7 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 estimated to be approximately $350 million over a seven-year contract term.
  • The complex transformational engagement covers end-to-end of RDA's IT landscape from IT Infrastructure to applications
  • HCL's solution to RDA is based upon creation of globally focused business transformation CoEs (Centers of Excellence) for Global Fulfillment, Marketing, Digital Interactive and Shared Business Services leading to media, publishing and entertainment domain led innovation
  • It significantly leverages HCL's global delivery and onsite support capabilities by supporting RDA's operations in 45 countries and 14 languages across North America, Latin America, East and West Europe, and Asia
  • The engagement involves re-badging a number of employees globally into HCL's diverse multi-cultural workforce
  • HCL will Centralize and simplify RDA's IT from a "Site Heavy" model to a "Central Heavy and Site Lite" model by bringing common processes worldwide

 

Sunnyvale/ London/ Noida/ Dubai/ Sydney, March 16, 2009 - HCL Technologies Ltd. (HCL), leading global IT services provider, has entered into a 7 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 estimated to be approximately $350 million over a seven-year 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 global languages of 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 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 CoEs (Centers of Excellence) for Global Fulfillment, Marketing, Digital Interactive and Shared Business Services leading to media, publishing and entertainment domain led innovation.

Al Perruzza, Senior Vice President for Global Operations, IT and Business Redesign for RDA, said, "IT is a key enabler to 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 Vice President Sanjeev Nikore.

R Srikrishna, Sr. VP - 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 and 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."

HCL pioneered the concept of Remote Infrastructure Management (RIM) with a co-sourcing engagement model, which has added substantial value to customers including 90+ Fortune/ Global 1000 enterprises. The company was cited as a leader in Global IT Infrastructure Outsourcing in an independent vendor evaluation study by Forrester WaveTM, Q2, 2007 and No.1 'Specialty Offshore Infrastructure Services Provider' by NeoIT and 'Managing Offshore' magazine. The company currently manages more than 800,000 mission critical devices systems and supports 500,000 business users. HCL has also been ranked as the World No.1 Best Performing IT Infrastructure Services by Global Services 100 Survey 2008.

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