HCL Technologies Ltd.

HCL Technologies signed a 5-year deal with UK-based publisher Mecom that was expected to generate Rs 567 crore business for the Indian company for providing IT services. Service provision will commence in the first half of 2012 and will last for 5 years. The deal could be further extended by two years and would cover other area of IT.

Under the deal, HCLT will initially provide Mecom with infrastructure and in certain cases application management services in the Netherlands, Denmark and Norway. Over the five years the total cost to Mecom of services to be provided by HCL will be in excess of 90 million euro (about Rs 567 crore).The company estimates this cost will be one-third of Mecom's anticipated future IT cost base.

In the next 18 month, Mecom will bear transition and other exceptional up-front cash cost which is estimated to be in the tune of 19 million euro (Rs 119 crore), as well as outsourcing-related capital expenditure costs of approximately 12 million euro (Rs 75.6 crore). The larger of which will be incurred in 2012. crackcrack