Delhi-based HCL Technologies has signed a $500 million (Rs 2,225 crore) strategic pact with pharmaceutical major MSD (also known as Merck & Co) for a period of five years.
HCL will offer software-led information technology solutions, remote infrastructure management, engineering and business and knowledge process services to MSD.
"We expect the revenue to kick in from calendar year 2010 and beyond. We will be offering them managed services across many development lines. Moreover, we expect technology work arising from the integration of Merck and Schering-Plough to come in soon," said Prem Kumar, senior corporate officer and president, BFSI and healthcare, HCL.
The life sciences division contributed 7.5 per cent to HCL's revenue in the third quarter ended March 31.
In 2007, the two companies signed a $150-million (Rs 670 crore) deal and the new one is an extension of the relationship. HCL is to expand its US team in Cary, North Carolina, which has a headcount of 500. HCL will use its near-shore delivery network in the US, comprising its operations center in Raleigh, North Carolina, and its global data centre delivery system.
The company will do local hiring to staff this project. In all, HCL would deliver services out of 20 worldwide locations, including in the US, Poland, China and Brazil.
"This time, our engagement is much deeper than in 2004 or 2007, and we have more managed services in this deal. Some part of the order will be executed from China and Poland and we will expand there also," Kumar added.
In the quarter gone by, HCL forged a strategic partnership with Wellogic, a software solutions provider for the healthcare community. The companies have collaborated to provide interoperability and health records management solutions.
The HCL stock closed at Rs 398.35, up 2.1 per cent on the Bombay Stock Exchange on Tuesday.
Image: HCL founder Shiv Nadar
