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Five-year Fonterra gig helps HCL New Zealand soar in 2021

Five-year Fonterra gig helps HCL New Zealand soar in 2021

Local revenues at fellow India-based ICT outsourcers languish.

Credit: Dreamstime/Oleksandr Shnuryk

Revenue at India-based ICT outsourcer HCL's New Zealand business accelerated sharply in the year ended 31 March, 2021.

Statements filed with the Companies Office show HCL NZ increased its revenues from $35.9 million in 2020 to $90.1 million for 2021.

A single contract win is likely to be the biggest contributor to HCL's surge: at cooperative dairy giant Fonterra, which is New Zealand's largest company by revenue. Last February, Fonterra announced it had consolidated from running a bench of external ICT service providers down to HCL, under a five-year deal expected to deliver significant savings.

HCL had been supporting Fonterra for over a decade, managing its IT application support and maintenance portfolio, including SAP. Its new gig at Fonterra includes not just managing the coop's technology infrastructure but modernising it as well.

It was understood Datacom and DXC both used to supply Fonterra with some of the services that then went to HCL. 

HCL breaks out of the pack on the back of a new services deal with Fonterra.Credit: Reseller News
HCL breaks out of the pack on the back of a new services deal with Fonterra.

The deal served to reverse a revenue slide for HCL in the local market. The company's New Zealand subsidiary reported $40 million in revenue for the year ended 31 March 2019, down from $43.9 million in 2018. In 2020, that fell further, to $35.9 million.

In comparison, HCL's fellow India-based ICT services providers operating in New Zealand saw their revenues flatline.

Infosys NZ reported sales of $36.9 million for the year to the end of 31 March, 2020, up from $29.5 million in 2019. In 2021, however, that tracked down again to $31.2 million.

Tech Mahindra reported a small revenue gain from $26.3 million in 2020 to $28.8 million this year.

Tata Consultancy Services also operates locally but does not report its New Zealand numbers separately from the global business.



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