Xerox enters $1 Bn IT services agreement with TCS and HCLTech

Xerox has committed over $1 billion in IT services deals with Tata Consultancy Services (TCS) and HCLTech, as outlined in a recent regulatory filing. The digital printing giant will source services from these Indian tech firms over the next five to seven years, with HCLTech securing a $590 million contract for five years and TCS a $490 million contract for seven years, according to Xerox’s filing with the U.S. Securities and Exchange Commission.

The agreements highlight expanded partnerships with both companies, following recent announcements by TCS and HCLTech about strengthening ties with Xerox. TCS revealed plans in June to broaden its role with Xerox, focusing on an extensive digital transformation without specifying the contract’s value. Meanwhile, HCLTech, in August, announced an expansion of its longstanding, 15-year partnership with Xerox, concentrating on AI-driven engineering and digital process services.

Xerox’s filing also detailed commitments with other tech partners, including a $125 million agreement with Microsoft and a $50 million deal with SAP, each extending over seven years.

Under the expanded TCS partnership, the Mumbai-based company will support Xerox in overhauling its technology infrastructure, consolidating services to improve business efficiency, transitioning legacy data centers to Microsoft’s Azure cloud, and implementing a cloud-based ERP system to modernize business processes. TCS also aims to leverage generative AI to boost sustainable growth for Xerox.

Noida-based HCLTech has been a strategic partner to Xerox, particularly in outsourcing and digital transformation services. Their previous seven-year, $1.3 billion outsourcing agreement from 2019 has set the foundation for this latest expansion, with HCLTech providing strategic AI-powered solutions to enhance Xerox's engineering and digital operations.