HCLTech is likely to see the end of a key business process management (BPM) engagement with long-time client Xerox Corporation, a move that could affect nearly 170-200 employees associated with the project. The contract, which forms part of the broader relationship between the two companies, is expected to conclude in June.
Reportedly, Xerox has decided against extending the BPM agreement as part of a larger effort to reduce costs and streamline operations. The US-based technology company is reportedly shifting a significant portion of the work to its own operations in the Philippines, while transferring the remaining workload to a local third-party BPM provider in the country.
The transition is understood to be linked to Xerox’s ongoing business- transformation initiatives and efforts to improve profitability. Most of the work previously handled by HCLTech is expected to be absorbed internally by Xerox, with only a limited share moving to an external service provider.
The development could have a direct impact on employees working on the project, many of whom are based at HCLTech’s Noida campus. Sources suggest that affected staff members were informed several weeks ago that redeployment opportunities within the company may be limited. A section of the workforce linked to the project has already reportedly moved to the bench as the engagement nears completion.
Despite the setback, Xerox remains one of HCLTech’s longstanding clients, with the two companies having collaborated on multiple technology engagements over nearly two decades. The BPM contract represents only one component of a wider business relationship.
The latest development comes amid continuing uncertainty in the IT services sector, where clients are increasingly reassessing spending priorities, adopting automation, and pursuing cost-efficiency measures.
Separately, HCLTech recently announced workforce reductions in the US, including layoffs at a Florida facility as part of an operational restructuring tied to a client engagement. The company employs more than 2,26,000 people across 60 countries.
