Verizon Business, the enterprise division of Verizon Communications, announced on Aug 10 that it has designated HCLTech as its primary managed network Services (MNS) collaborator in all networking deployments for global enterprise customers. HCLTech informed the exchanges in a filing that the deal value has an estimated new total contract value (TCV) of $ 2.1 billion for a six-year term.

This comes at a time when large IT providers have been announcing mega deals despite a drop in technology spending due to macroeconomic concerns in the United States and Europe. Such large transactions could be a result of companies seeking cost savings and consolidating their vendors.

In recent weeks, Infosys announced a $2 billion 5-year contract with a large client, as well as a $1.5 billion deal with BP. Meanwhile, TCS, India's largest IT services company, announced a $1.9 billion decade-long deal with UK-based Nest in June.

"Managed Network Services is core to our business, and we're proud to collaborate with Verizon Business to lead MNS in all of their network deployments, modernization, and operations for private enterprise," C Vijayakumar, CEO of HCLTech, said.

Verizon Business will continue to be in charge of all customer acquisition, sales, solutioning, and overall planning and development. HCLTech will be in charge of post-sale implementation and support. A subset of Verizon Business's global customer operations staff will be transferred to HCLTech.