HCLTech ends three-year mega-deal drought with $1.14 billion contract from European client

HCL Technologies Ltd has won a $1.14 billion, five-year contract from a European Fortune 50 company, ending a three-year mega-deal drought for the country’s third-largest technology services firm. The deal provides HCLTech with $228 million in annual revenue, representing approximately 1.6% growth in FY27.

“HCLTech is pleased to announce the signing of a significant strategic partnership with a Europe-based Fortune Global 50 Company to create 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 July 3. he said.

The company is expected to manage IT procurement, including providing hardware and software connections between laptops and servers to the client’s employees.

Mint It can detect the name of the European customer independently. Shares of HCLTech rose 4% on the BSE on the morning of July 3.

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The contract comes at a time when growth looks elusive this financial year; This is mainly due to automation tools eating up much of the work done by IT services firms and geopolitical tensions forcing customers to pull back on technology spending.

“This agreement also strengthens HCLTech’s credibility in the pursuit of large-scale competition at a time when businesses are consolidating strategic technology partners,” said Phil Fersht, CEO of HFS Research.

The deal comes a month after HCLTech bought a stake in an artificial intelligence firm, the first technology services company to do so. On June 17, HCLTech acquired 10% of Sarvam AI, a Bengaluru-based startup that offers AI models in Indian languages, for approximately $150 million.

HCLTech closed last year with $14.66 billion in revenue, up 6%, making it the fastest-growing technology services company among the top five. The new deal is expected to be a major blow for the company, which posted slower growth in the fiscal April.

European income growth

HCLTech expects growth of 1% to 4% in constant currency terms, compared to the 2-5% stated in April 2025. Fixed currency does not take into account currency fluctuations. The deal will boost European revenue, which accounts for just over a quarter of the total.

The contract is extendable for another five years and is HCLTech’s first major deal in three years. The company last achieved a deal worth more than $1 billion in August 2023, when it signed a five-year $2.1 billion managed services contract with US telecom company Verizon.

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This is the third mega deal under Chief Executive Officer C Vijayakumar, who took over in October 2016. The company first won an IT outsourcing deal with Xerox in 2019 worth $1.3 billion.

The deal also marks Indian IT’s first major deal in FY27 and fourth since January 2024. This comes nine months after two of its larger rivals ended their own two-year mega-deal drought.

In October, Infosys Ltd signed an IT modernization contract with the UK’s National Health Service. The agreement, worth $1.6 billion, will be valid for 15 years.

Two months later, Tata Consultancy Services Ltd won a deal worth more than $1 billion over 10 years from Telefónica UK, the British arm of Spanish telecommunications giant Telefónica. The country’s largest technology services company also won a 15-year deal worth $2.5 billion with British insurer Aviva in January 2024.

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In October last year, mid-market Coforge Ltd announced its largest deal, a 13-year contract worth $1.56 billion, with Saber Corp, a travel technology company based in Southlake, Texas. As part of the agreement signed in March last year, Coforge will handle software product delivery and AI functions for Saber.