HCL bags service deal from Equitable

HCL Technologies won a long-term service contract from British insurance company Equitable Life Assurance Society, the IT firm announced on Monday.

Under the deal, which is roughly valued at $200 million, HCL will administer complete solutions for Equitable life including IT operations, call center services, finance, policy administration and actuarial services.

The contract, which is effective in March 2011, is evergreen. The maximum period of the contract will be 30 years, said HCL Technologies' Vice Pres. Stuart Drew on an interview with the Economic Times of India. He added that the revenue from the deal would turn up in the first five years and gradually decline as policies fall off.

According to the information technology firm's press release, Equitable Life targets to cut costs by roughly $13.2 million in the first year of the deal. It also said that the UK-based insurance firm expects a major improvement in cost certainty for the entirety of the contract.

ET's report also said that HCL Technologies would handle the work of 240 employees and take care of more than 50 jobs from the IT firm's Chennai facilities.

HCL Technologies, one of the leading IT services providers in India, also offers a wide range of services, such as remote infrastructure management and business process outsourcing. Its combines revenues are worth $2.3 billion as of September.

The company also considered this deal with Equitable Life as a major win since it acquired Liberata Financial Services last year.