06 Apr 2009

Xerox signs $100m data centre contract

Xerox has signed a $100 million (£67 million) deal to outsource the management of its data centre.

The document management company will hand over control of nine data centres in Europe and the US to HCL Technologies.

Included in the six-year contract is disaster recovery and business continuity cover in addition to architecture and consulting services for new technology and system design, with the contract being the third large one gained by HCL so far this year.

Xerox has revealed it will cut 3,000 jobs from its 57,000 staff as it aims to reduce costs, but says this deal is not related to the restructuring of the firm.

HCL's shares increased by eight per cent to Rs115.70 (£1.55) on the New York Stock Exchange, following the announcement of the deal.

John McDermott, chief information officer at Xerox, says: "HCL has demonstrated their leadership position in delivering global, transformational infrastructure services."