Xerox has signed major IT services agreements worth over USD 1 billion with Tata Consultancy Services (TCS) and HCLTech, marking a substantial investment in digital transformation over the next five to seven years.
The deals, outlined in a recent regulatory filing, include a USD 590 million contract with HCLTech for five years and a USD 490 million contract with TCS for seven years. These collaborations are expected to advance Xerox's digital capabilities and streamline its operations.
The new agreements come after both TCS and HCLTech previously announced expansions of their ongoing partnerships with Xerox, headquartered in Connecticut.
While TCS disclosed in June that it would support a comprehensive transformation program for Xerox, the value of that contract was not specified at the time. Similarly, HCLTech in August extended its 15-year relationship with Xerox to focus on AI-driven engineering and digital process operations without disclosing specific figures.
These announcements build on an existing USD 1.3 billion outsourcing contract between HCLTech and Xerox, signed in 2019 for a seven-year period.
Under the expanded terms with TCS, the Mumbai-based IT giant will provide business process outsourcing for Xerox’s finance and accounting divisions and consolidate Xerox’s technology services to enhance business outcomes. The partnership includes migrating Xerox’s legacy data centers to Microsoft Azure, deploying a cloud-based digital ERP platform, and using generative AI to drive growth and efficiency across the company. HCLTech, headquartered in Noida, will focus on delivering strategic AI-powered engineering services and process optimizations.
Additionally, Xerox disclosed separate commitments to other technology providers, including a USD 125 million investment with Microsoft and USD 50 million with SAP, both spanning a seven-year term.
