HCL Tech wins $200 mln order from Equitable Life
NEW DELHI (Reuters) - Software services firm HCL Technologies on Monday said it won a contract worth $200 million from British insurer Equitable Life.
The contact begins in March 2011, HCL said in a statement, but the Indian firm would receive 8 million pounds ($13 million) by then as it begins work towards the implementation of the project, Stuart Drew, HCL's senior vice president, financial services, told reporters on a conference call.
While the deal runs for 30 years, the bulk of the revenue would accrue in the first eight years, Drew said.
Equitable Life, Britain's oldest mutual insurer with 1.5 million policyholders at its peak, closed to new business after it almost collapsed in 2000 after being forced to honour unsustainable guarantees stretching back 30 years.
HCL edged out 10 global IT firms to win the contract, Equitable Life Chief Executive Chris Wiscarson said.
Around 240 of Equitable Life's employees would be made redundant as a result of the contract, some of whom could be taken on HCL's payrolls, Drew said.
(Reporting by C.J. Kuncheria; Editing by Prem Udayabhanu)
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