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HCLTech has secured a $1.14 billion contract from a European client, ending a three-year gap in mega deals. The agreement reflects improving demand for large-scale digital transformation projects and strengthens the company's position in the global IT services industry. The company is expected to manage IT procurement work, including supplying the client’s employees with hardware and software connections across its laptops and servers.
HCLTech expects growth of 1% to 4% in constant currency terms, compared with 2-5% outlined in April 2025.
The deal assures HCLTech $228 million in annual revenue, translating to about 1.6% growth in FY27. “HCLTech is pleased to announce the signing of a significant strategic partnership with a Europe-headquartered, Fortune Global 50 Firm to establish an AI-driven operating model to transform and manage their Global Digital Workplace and Enterprise Networks,” the Noida-based company said in a press release dated 3 July.
This deal comes a month after HCLTech picked up a stake in an AI firm, the first tech services firm to do so. On 17 June, HCLTech acquired 10% in Sarvam AI, a Bengaluru-based startup that provides AI models in Indian languages, for about $150 million.
The contract comes when growth appears elusive in this fiscal, primarily due to the rise of automation tools eating up much of the work handled by IT services firms and geopolitical tensions forcing clients to pull back their tech spending.
“The deal also strengthens HCLTech’s credibility in large-scale competitive pursuits at a time when enterprises are consolidating strategic technology partners,” said Phil Fersht, chief executive of HFS Research.
HCLTech ended last year with $14.66 billion in revenue, up 6%, making it the fastest-growing tech services firm among the top five.
The deal also marks Indian IT’s first mega-deal in FY27 and the fourth since January 2024. In October, Infosys Ltd bagged an IT modernization contract with the UK’s National Health Service. The deal valued at $1.6 billion runs for 15 years.
Two months later, Tata Consultancy Services Ltd won a deal valued at more than $1 billion over 10 years from Telefónica UK, the British arm of Spanish telecom giant Telefónica. The country's largest tech services firm also won a 15-year deal worth $2.5 billion with Aviva, a British insurance company in January 2024.
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The contract is extendable by another five years and is HCLTech’s first mega-deal in three years. The company last bagged a deal exceeding $1 billion in August 2023, when it inked a $2.1 billion managed services contract with US telecom firm Verizon for five years. The company first won an IT outsourcing deal with Xerox worth $1.3 billion in 2019.
This is the third mega-deal under chief executive officer C Vijayakumar, who took over in October 2016.
The multi-billion-dollar agreement with HCLTech reflects the ongoing need for IT expertise from India on a global scale. Not only do large deals increase visibility, but they also affirm the reputation of India as a technology partner for AI and digital transformations.
