The contract was previously split and executed by multiple vendors. Ericsson has consolidated it now under HCL.
When TOI contacted Ericsson, its spokesperson said, “Ericsson can confirm that it has entered an agreement with a new IT partner, HCL. We refrain to comment further on the particulars of the deal.” An email to HCL did not elicit a response till the time of going to the press.
Global technology and research advisory Omdia said there are 56 deals in the telecom space that will come up for renewal between now and December that’s worth $13.9 billion. “Most of the deals are concentrated in the EMEA and APac regions and IBM is the major incumbent in these deals, followed by Nokia Networks. Most of these are infrastructure deals that were signed between 7-10 years ago and will likely involve a complete infrastructure refresh and a significant apps portion as well,” said Hansa Iyengar, principal analyst in Omdia.
Last year, Tech Mahindra bagged an over $1 billion deal from AT&T Communications, its largest ever. It’s bigger than that with British Telecom, with which it has had a long relationship.
The space is getting a lot of attention as early 5G adopters are set to benefit from the efficacy of time and speed to deliver a host of services. The latest Gartner forecast shows that worldwide 5G network infrastructure market revenue will almost double in 2020 to reach $8.1 billion and this would open up newer opportunities for IT service providers.
Jimit Arora, partner in US IT research advisory Everest Group, said he is seeing a lot more situations where clients who are seeking to pursue significant acceleration in their digital transformation programmes are looking to construct larger deals.
“Consequently, we expect to continue to see mega deals in the landscape as clients seek more savings (typically with some form of financial engineering to bring in savings up front). As part of this it is not surprising that we will expect to see incumbents being dislodged as clients seek to get innovation and cost savings that they are not getting from their current suppliers,” he said.