HCL Technologies Ltd bagged 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 tech services firm. 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.
The company is expected to manage IT procurement work including supplying the client’s employees with hardware and the software connections across its laptops and servers.
Mint could independently ascertain the name of the European client. HCLTech shares rose 4% on the BSE in morning trading on 3 July.
The contract comes when growth appeared 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.
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.
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 new deal is expected to come as a shot in the arm for the company, which had outlined slower growth in the fiscal in April.
Europe revenue growth
HCLTech expects growth of 1% to 4% in constant currency terms, compared with 2-5% outlined in April 2025. Constant currency does not take currency fluctuations into account. The deal should boost its Europe revenue, which makes up a little more than a fourth of the total.
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.
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 worth $1.3 billion in 2019.
The deal also marks Indian IT’s first mega-deal in FY27 and the fourth since January 2024. It comes nine months after two of its larger peers ended their own two-year mega-deal drought.
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.
In October last year, mid-sized Coforge Ltd announced its largest deal, a 13-year contract worth $1.56 billion with Sabre Corp, a Southlake, Texas-based travel technology company. As part of the deal signed in March last year, Coforge will handle software product delivery and AI functions for Sabre.