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New Delhi, Sept 11

General Electric Company (GE) has selected HCL Technologies to set up and operate global development centres (GDCs) in India and China over the next three years.

GE selected HCL as one of its partners after due diligence conducted by the GE team.

"We are excited about this partnership and will continue to deliver the near-shore alternatives and LCC leverage to GE. Our leadership in the areas of multi-service offerings, flexibility and transparency in business models, and success with HR policies like `Employee First' are contributing to our demonstrated track record of high value, cost-effective partnerships," said Mr Shami Khorana, President, HCL America, a 100 per cent subsidiary of HCL, in a release issued from Sunnyvale, US.

Executives from HCL Technologies India were not available for comment.

Details regarding the deal size or the nature of the contract were not released.

"This is a significant win for HCL as it leverages our vast domain and deep technology expertise," said Mr Ravi Reddy, Vice-President and Head of Enterprise Consulting Services Division at HCL America.

Market analysts said that the deal was in line with the trend that companies involved in operating captive business process units are now increasingly outsourcing their requirements to third party companies.

They said that similar deals may be in the offing in the next few months involving large Indian BPO and ITeS units.

Industry sources said that the agreement with GE could fetch revenues of over $50 million for HCL.

HCL has signed five major deals since December 2005 and all of them have been above the $50-million mark.

HCL Technologies reported 31 per cent growth in revenues to Rs 4,388 crore and 27 per cent increase in net profit from to Rs 773 crore for 2005-06.

(This article was published in the Business Line print edition dated September 12, 2006)
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