Xerox strikes outsourcing deal with HCL Techologies

SOURCE: Reuters
DATE: April 7th, 2009

ARTICLE
Xerox Corp (XRX.N). will pay $100 million over six years to outsource data-center services to HCL Technologies Ltd (HCLT.BO), one India’s largest information technology service providers, a Xerox spokesman said on Sunday.

As part of the deal, HCL will manage disaster-recovery preparation and consolidate Xerox’s data centers in North America and Europe, spokesman Bill McKee said.

Last year Norwalk, Connecticut-based Xerox cut about 3,000 jobs.

In November, the two companies announced a partnership, which called for HCL to help companies integrate Xerox’s manage print services into their systems.

Last month, Xerox chopped its first-quarter earnings forecast by as much as 85 percent, as the slowdown in office equipment spending badly hurt revenue and thwarted its cost-cutting efforts.

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