HCLTech Acquires HPE’s CTG Assets To Expand Telecom Capabilities

HCLTech on Thursday said it was expanding in the telecom services market through a strategic acquisition of certain assets from Hewlett Packard Enterprise’s (HPE) Communications Technology Group (CTG). 

This transaction, which is anticipated to close within 6 to 9 months pending regulatory approvals, will bring industry-leading intellectual property (IP), engineering and R&D talent, and key client relationships with top global Communication Service Providers (CSPs) under HCLTech’s umbrella.

This deal will see approximately 1,500 CTG employees, who possess extensive telecom industry experience, transferring to HCLTech. These employees are spread across several countries, including Spain, Italy, India, Japan, and China, and will support clients globally.

“With the incoming top engineering talent and industry-leading IP from the CTG group of HPE, we are adding significant capabilities and direct relationships with global CSPs that include 20 of the Top 30, accelerating our growth strategy in the global telecom industry,” C Vijayakumar, CEO and Managing Director of HCLTech.

The acquisition is expected to significantly enhance HCLTech’s portfolio, adding new capabilities in Business Support Systems (BSS), network applications, service cloudification, and data intelligence. 

These new assets will complement HCLTech’s existing services, which are highly digitised and incorporate artificial intelligence (AI), the Internet of Things (IoT), and data-driven models. The integration will look to boost efficiency and provide seamless integration within an end-to-end partner ecosystem.

HPE will retain its Operations Support Systems (OSS) business, which includes OSS, orchestration and assurance, and both public and private 5G networking. This segment will continue to operate within HPE Aruba Networking, maintaining its focus on delivering value to HPE’s telecommunications customers and partners.

“With this transaction and our planned strategic partnership with HPE, we are strengthening our telecom practice to address the rapidly expanding and transforming global telecom market,” added the HCLTech CEO.