HCL Technologies Ltd (HCL) has signed a five-year outsourcing agreement for IT infrastructure services with Helsinki-based UPM.
As part of this agreement, HCL will provide data centre, end-user support, network services and professional IT services to UPM. HCL will also set up a data centre in Finland and strengthen its existing Espoo Delivery Center to provide the services.
The deal value is estimated to be $300 million, according to information given by the company to the BSE.
Around 250 UPM employees are expected to move to HCL by August-end, subject to signing of local transfer agreements and customary closing conditions.
The CIO of UPM, Mr Turkka Keskinen, said: “With this, we aim to increase scalability and flexibility as well as ensure access to world-class competences and best practices.”
“Through this engagement we will aim to optimise and transform UPM's IT infrastructure to ensure enhanced and cost-efficient IT operations,” said Mr Venu Gopal Lambu, AVP and Head of Continental Europe, HCL Technologies.
UPM makes products made of renewable raw materials. The company consists of three business groups: energy and pulp, paper, and engineered materials. The group employs around 24,000 people and it has production plants in 16 countries. UPM's annual sales exceed €10 billion and its shares are listed on the Helsinki Stock Exchange.