March 21: Technology giant HCL Technologies (HCL) has entered into a managed services agreement with Xerox, whereby HCL will manage portions of Xerox’s shared services, including global administrative and support functions, including, among others, selected information technology and finance functions, excluding accounting.
The agreement is for seven years and involves an incremental $1.3 billion to build on the success of the Xerox-HCL relationship, which began in 2009 with product engineering and support services.
As per the earlier agreement, HCL manages aspects of Xerox’s mechanical, electrical and software engineering activities for printer and imaging product lines. Reports said that HCL and Xerox have together delivered 215 US patents and have created world-class R&D labs that are tightly integrated with Xerox infrastructure and standards.
Going by the report, the expanded partnership endorses the strong Xerox-HCL relationship that has grown through multiple collaborations over the past 10 years. While it is believed that Xerox would benefit from HCL’s global scale, best-in-class processes and investments in artificial intelligence, robotic process automation and transformation tools, HCL is likely to make gains from a long-term agreement to provide product support and administrative services to Xerox.
With the agreement in place, a group of Xerox employees will be transferred to HCL, subject to compliance with European works council consultation and employment regulatory requirements. The employees who are transferring to HCL will have an opportunity to be part of a leading global technology company, it is being said.