HCL, Infy in race for multi-million dollar deal from Rockwell Automation

K GIRIPRAKASH VENKATESH GANESH Bangalore | Updated on June 05, 2014 Published on June 05, 2014

For modernising IT infrastructure and creating cloud eco-system for the US company

HCL and Infosys are in the race for a $150-200 million contract from the US-based Rockwell Automation, an automation equipment and software maker.

Sources in both the companies told Business Line that the contract is for modernising their IT infrastructure commonly known as IMS (infrastructure management services) and creating cloud eco-system hub for Rockwell Automation.

The Noida--based HCL is supposed to be a front runner for bagging the deal, but Infosys, it is learnt, is also making a strong pitch with its CEO and Managing Director SD Shibulal personally driving the efforts. If Infosys bags the contract, it will be its biggest during the last two fiscals.

IMS is one of the fastest growing businesses for the IT sector. In the 2014 fiscal, this vertical contributed 7.1 per cent to Infosys’ revenues.

What might give Infosys the edge is the fact that its customer, Harley Davidson has recommended the company to Rockwell Automation, another Milwaukee-based entity. The Harley Davidson account is considered one of the biggest deals Infosys has bagged so far. Rockwell Automation is a $6-billion company and has over 22,000 employees. It services customers in over 80 countries.

Two phases

Sources also said that there could be a possibility of splitting the entire contract into two phases. The contract for the first phase could go to either of the two and the next will be opened up for other vendors as well. An Infosys spokesperson said that the company does not comment on its clients.

In September, 2012, Infosys expanded its presence in the US by opening a new delivery centre in Milwaukee, Wisconsin. This centre was started to support its marquee client, Harley Davidson.

The centre has a capacity to house 125 employees, some of whom are from the US company itself.

The workforce is expected to be expanded later. Infosys expects to service other customers from this location as well.

The contract with the motorcycle maker, Harley Davidson will run for five years and will provide technology services including application management, data network engineering, data centre operations and hosting services.

The deal from Harley Davidson was won when Ashok Vemuri was the head of Infosys’ US operations. Since then, Vemuri has moved over to head the mid-size outsourcing company, iGATE.

Infosys has over 16,000 employees based out of the US and client locations as of last fiscal. It has this year hired 1,000 employees in the US.

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Published on June 05, 2014
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