HCL Technologies signs multi-million deal with News Corp UK

India's major IT player HCL Technologies announced on Tuesday that it has entered five-year multi-million pound deal with News Corporation's British arm, News International, reports said.

Under the agreement, HCL will transform and manage the datacenter and datacenter of News International by migrating the media group's operating systems to a low-cost solution. Industry experts estimated the deal to be worth between $200 million to $250 million although company officials declined to provide the value of the deal.

HCL Technologies' senior Vice Pres. Pradeep Bindal told the Economic Times of India, the IT company would be consolidating and managing the data centers and information technology of News International. He added that they would also be in charge of the news company remotely from their India facilities and as well as onsite from the United Kingdom.

A report by Business Standard also said that HCL Technologies has already started partnering with other companies of News Corporation for the media firms' requirements for technology infrastructure management.

The Indian IT major said that it has more than 40 clients in the MPE or media, publishing and entertainment vertical, which contributes some 6.8 percent of the revenues the company and increased by 52.8 percent compared to the previous year. HCL Technologies recently announced its deals with Viacom where it would develop an online media platform and content, and Reader's Digest Association, which was worth $350 million.

The IT firm also has one of the biggest remote infrastructure facilities as compared to other Indian IT vendors.