Xerox has entered into a significant IT services agreement valued at over $1 billion with Tata Consultancy Services (TCS) and HCLTech, marking a major development in its strategic technology partnerships. This agreement includes a $590 million deal with HCLTech for a five-year term and a $490 million arrangement with TCS for a seven-year period, according to Xerox’s filing with the U.S. Securities and Exchange Commission.
The deal represents an expansion of existing relationships between the Connecticut-based company and the two Indian IT giants. Months prior, both TCS and HCLTech had revealed the growth of their respective partnerships with Xerox, focusing on enhanced technology services.
The new contracts are part of Xerox’s ongoing digital transformation efforts. TCS, which has been providing business process outsourcing services for Xerox’s global finance and accounting functions, will now help consolidate Xerox’s technology services to drive more efficient business outcomes. Additionally, TCS will assist in migrating Xerox’s legacy data centers to the Azure cloud, deploying a cloud-based ERP platform, and incorporating generative AI to foster sustainable business growth.
Meanwhile, HCLTech, which extended its 15-year partnership with Xerox in August, is focusing on AI-driven engineering services and digital process operations as part of the extended collaboration. HCLTech’s previous outsourcing deal with Xerox, valued at $1.3 billion over seven years, was signed in 2019.
In addition to the deals with TCS and HCLTech, Xerox’s regulatory filing also revealed significant commitments with Microsoft and SAP, including $125 million for seven years with Microsoft and $50 million with SAP over the same duration.
TCS and HCLTech did not respond to requests for comment by the time of publication.