Indian IT services provider HCL Technologies and CSC will create an application modernization delivery network to enable enterprises to shift from legacy technologies to a cloud-enabled platform.
The first delivery centers — in Bangalore and Chennai — will lower the risks and costs for enterprises transitioning to the cloud.
HCL and CSC will share equally all cloud application modernization revenue and direct costs. With a new governance board providing oversight, HCL and CSC will share employees and technologies, as well as production and development work.
As part of the partnership, HCL will white label CSC’s BizCloud for the enterprise. HCL and CSC will benefit from the increased scale of this offering, expanded coverage in new markets and revenue opportunities.
The joint application modernization offering will be enhanced with vertical initiatives starting with banking and financial services through the creation of a banking center of excellence. The partnership will be standardizing the delivery of modernized applications and enable them to be brokered onto any cloud environment, using platforms such as CSC’s ServiceMesh.
“Application modernization forms the first phase of HCL’s Digital System Integration strategy. Enterprises today view digitalization as a route to business model transformation,” said Anant Gupta, president and chief executive officer of HCL Technologies.
Mike Lawrie, CSC’s President and Chief Executive Officer, said that CSC’s solutions coupled with the technology consulting, systems integration and global delivery capabilities of HCL will offer a new value proposition in the market.
This proposition will create a roadmap for bringing legacy products into next gen solutions and execution excellence leading to an optimized business case for application modernization for customers.
According to Gartner’s 2014 Market Forecast for IT Services the addressable market for applications services is $210 billion in 2014.