India’s fourth largest software firm HCL Technologies has formed an alliance with United States based Computer Sciences Corporation to bolster their presence in the fast-growing cloud computing and application services market.
The alliance announced on Wednesday comes as software vendors are increasingly tapping into the enterprise infrastructure market as companies look to reduce costs by moving their traditional enterprise applications on to the cloud.
HCL and CSC are rivals in the technology services market, but through this alliance the two companies will take solutions jointly to their existing as well as new clients.
“It is a new market and many companies are going after. Together, we hope to get there more quickly,” said Mike Lawrie, chief executive officer of CSC.
Noida based HCL already has a strong presence in the infrastructure management segment, which contributed 33% to the company’s revenue in the September quarter. Lawrie said while HCL would leverage CSC technical expertise CSC would benefit from HCL’s large client base.
US-based telecommunications firm AT&T is their first client.
Anant Gupta, chief executive of HCL said the two companies will tap into financial services and telecom sector clients that are modernising their enterprise applications. HCL and CSC will share revenues and costs equally, and would use their existing development centers in Bangalore and Chennai to develop solutions, he said.
Gupta said the companies are currently shortlisting a senior executive who will head this alliance.
HCL is expected to announce its second quarter financial results on Thursday. The company’s stock ended at Rs 1,335, up 0.97% on the Bombay Stock Exchange, ahead of the announcement.