HCL inks five-year, $500m IT deal with Merck & Co

By Staff reporter

- Last updated on GMT

India-based HCL Technologies has entered into a five-year, $500m (€380m) agreement with Merck & Co to provide the big pharma with business and technology services.

HCL and Merck have worked together since 2004 and this relationship is expanding to make the Indian company “an integral business and technology services provider​”. The new deal covers software-led IT solutions, remote infrastructure management, engineering and business.

By outsourcing operations to HCL over the past six years Merck has streamlined operational efficiencies and consolidated its IT portfolio, according to Richard Branton, vice president of application services at the big pharma.

Branton explained that in the new deal Merck will benefit from the “depth of technology and pharmaceutical domain experience​” at HCL. Leveraging the expertise and global delivery services at HCL will allow Merck to meet its business imperatives, added Branton.

HCL expansion

To support the deal, which was described as “a landmark win​” by Shami Khorana, president of HCL Americas, the Indian company is expanding operations at its site in Raleigh, North Carolina, US.

The Raleigh site forms part of HCL’s near-shore delivery network in the US, which will be used to support Merck. HCL plans to hire local people to support the increased workload at the Raleigh site.

Of course, Merck’s operations extend far beyond the US and consequently HCL will deliver services to 20 locations around the world, including Poland, China and Brazil.

HCL offers a range of IT services spanning the pharmaceutical industry. These covers areas including finance and accounting support, in-silico ​drug discovery, clinical data capture, process validation and assistance with active pharmaceutical ingredient (API) production.

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