Verizon Business and HCLTech seal $2.1b megadeal to redefine managed network services

Enterprise leaders in the telecom space face a critical challenge in today’s fast-paced landscape: simultaneously reducing operational costs and meeting customers’ demands for high-speed data and connectivity. In response to these challenges, Verizon Business has embarked on a groundbreaking $2.1 billion partnership with HCLTech.

This partnership is set to redefine Verizon Business’ managed network services, encompassing service assurance, service delivery, and managed service support; it spans six years and extends across 32 countries. This partnership marks a significant milestone in the telecom industry’s evolution, where the imperative to partner and build ecosystems is vital to thrive.

Despite a long history of collaboration, HCLTech secured this deal through a rigorous RFP process

Securing this deal took much more than HCLTech’s longstanding relationship with Verizon Business. We believe HCLTech secured the partnership with Verizon Business through four key factors:

• Demonstrated telecom and network expertise: HCLTech entered the RFP with a significant industry advantage. With more than two decades of experience, HCLTech has earned its stripes in the telecom industry, running core networks, modernizing networks, providing remote operational services with automation at its core, and effectively managing infrastructure.
• HCLTech’s Managed Network Services (MNS) portfolio supports operational efficiencies: The MNS solution gave HCLTech an advantage in its ability to meet Verizon’s needs to control its network’s scale, consumption, and coverage. Further, this solution allows Verizon to more effectively operate its network services as IT and IoT usage of network services increases, while leveraging HCLTech’s automation capabilities solutions from HCLTech and other partners to deliver business and consumer services.
• Co-creating new value: HCLTech’s agility complements Verizon Business’ stability, promising a partnership to co-create and innovate on an integrated platform. Customers will benefit from cutting-edge solutions like 5G, SD-WAN, and SASE capabilities when incorporated with HCLTech’s digital-native MNS platforms and interfaces, which help customers manage their operational environment seamlessly, allowing complete visibility and observability.
• Broadened ecosystem and partnerships: Verizon Business will benefit from HCLTech’s broad and integrated partner ecosystem and accelerators, including key technology vendors and OEMs, such as Cisco, Palo Alto, Ericsson, and Pega.

The partnership is aimed to help Verizon Business incorporate new technologies, improve efficiency, drive enhanced services to its customers, and remain competitive in a rapidly evolving landscape. For HCLTech, this partnership will allow it to leverage extensive telecom capabilities and the market presence of Verizon Business.

The magnitude of transformation facing the telecom industry demands strategic partnerships and collaboration

The competitive landscape and evolving customer expectations, compounded by the rapid pace of technological advancement, have made it challenging for telecom services to maintain their foothold and adapt swiftly in isolation. Industry players now recognize the need to find partners to attain market share, customer loyalty, and technological leadership.

We at HFS believe partnerships are critical to success in this competitive landscape. This partnership between Verizon Business and HCLTech aligns with the concept of HFS OneEcosystem™, which underscores the importance of forging symbiotic relationships across industries to drive innovation and growth. By joining forces, Verizon Business and HCLTech are enhancing their capabilities and tapping into adjacent broader technology and service provider ecosystems (see Exhibit 1). This collaborative approach fosters an environment where shared expertise, resources, and technologies can be leveraged to meet evolving customer expectations and industry demands.

Exhibit 1: The HFS OneEcosystem adds partner experience to employee and customer experience

Source: HFS Research, 2023

The Bottom Line: Enterprise leaders must recognize that strategic partnerships hold the key to unlocking new territories of value and ushering in a future of connectivity and growth in the telecom industry.

As we look ahead, this mega-deal serves as a model for the telecom industry. It illustrates success in this dynamic landscape hinges on identifying and embracing innovative partners capable of co-creating value and amplifying capabilities.