HCL Technologies (HCL), a global technology company, announced that it signed a managed services agreement with Xerox.
Under the terms of the agreement, 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).
Leveraging HCL's global scale and capabilities, Xerox will strategically evolve its shared services into process-first, technology-led digital operations.
This seven-year agreement for an incremental $1.3 billion continues to build on the success of the Xerox-HCL relationship, which began in 2009 with product engineering and support services.
Under that agreement, HCL currently manages aspects of Xerox's mechanical, electrical and software engineering activities for printer and imaging product lines. Together, HCL and Xerox have delivered 215 U.S. patents and have created world-class R-D labs that are tightly integrated with Xerox infrastructure and standards.
HCL CEO C Vijayakumar says, “This expanded partnership is a testament to the strong Xerox-HCL relationship that has grown through multiple collaborations over the past 10 years.
“This is a win-win agreement. Xerox will benefit from our global scale, best-in-class processes and investments in artificial intelligence, robotic process automation and transformation tools, and HCL will benefit from a long-term agreement to provide product support and administrative services to Xerox.
Xerox COO Steve Bandrowczak says, “The evolution of our shared services represents our culture of continuous improvement and allows us to more efficiently address customer needs while delivering significant cost savings to reinvest in the business.
“We selected HCL as our partner for this strategic initiative due to our successful track record together thus far and our shared values.
As part of the agreement, a group of Xerox employees will transfer to HCL.