HCLTech has announced a strategic partnership with Hewlett Packard Enterprise (HPE) to extend its presence in the telecom services market. The global tech company has purchased certain Communications Technology Group (CTG) assets from HPE.  

Through this arrangement, HCLTech will acquire industry-leading intellectual property (IP), Engineering and Research & Development (R&D) talent, and client relationships with top global Communication Service Providers (CSPs). The company will also gain a portfolio of service offerings like industry-leading IP, solutions, and systems integration around Business Support Systems (BSS), network applications, service cloudification, and data intelligence. These capabilities will complement HCLTech’s highly digitized services with artificial intelligence (AI), Internet of Things (IoT), and data-driven models. 

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HPE will retain a part of its former CTG business focused on Operations Support Systems (OSS). The Telco Solutions group within HPE Aruba Networking, with 5G SDM and private 5G networking, will continue to serve HPE’s telco customers and partners.   

“With this transaction and our planned strategic partnership with HPE, we are strengthening our telecom practice to address the rapidly expanding and transforming global telecom market,” said C Vijayakumar, CEO and Managing Director of HCLTech. “With the incoming top engineering talent and industry-leading IP from the CTG group of HPE, we are adding significant capabilities and direct relationships with 20 (of top 30) global CSPs, accelerating our growth strategy in the global telecom industry. We envision an even larger strategic partnership with HPE, paving the way for strong growth through innovation, joint integrated propositions, and transformation services.“  

However, the companies maintain that the transaction is subject to regulatory approvals and other customary closing conditions. The deal is expected to close in 6 to 9 months. 

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Antonio Neri, President and Chief Executive Officer of Hewlett Packard Enterprise, commented, “HPE is pleased to have identified HCLTech as the right partner to support the ongoing transformation of global telecom, media, and tech companies. In joining HCLTech, our Communications Technology Group will become part of a strong partner that understands and appreciates the significant heritage of our CTG business, its strategy, and its potential for the future.”  

As part of this agreement, around 1,500 employees of CTG with telecom industry experience will transfer to HCLTech to service clients globally across countries like Spain, Italy, India, Japan, and China.  

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