HCL Tech bags $200-m deal from UK co

HCL Technologies said it has bagged a long-term deal worth about $200 million from UK-based insurance firm Equitable Life Assurance Society.

“The contract is ‘evergreen,’ it is for a period of 30 years. The revenue from the deal will come (mostly) in the first five to six years and decline gradually as policies decline,” HCL Technologies’ senior vice-president Stuart Drew said.

The deal has been awarded to HCL Insurance Business Services, the IT firm’s UK-based life and pensions administration business.

Currently, about 340 people are servicing the account. “We expect about 100 people will be taken in by Equitable Life, rendering about 240 people surplus. They will be relieved under suitable schemes,” Equitable Life Chief Executive Chris Wiscarson said.

“HCL will take care of the work of these 240 employees, with about 50-70 jobs being taken care of from HCL’s Chennai centre,” he added.

As part of the deal, HCL will provide complete solutions, including policy administration, finance, actuarial services, IT operational support and call centre services.