Xerox turns troublemaker for HCLTech and TCS

A $1.3-BILLION OUTSOURCING deal from Xerox bagged by HCLTech, the third-largest Indian IT services firm, in 2019 seems to have become a matter of concern for the latter.

- SAMEER RANJAN BAKSHI

From seeing disruption during the pandemic and contractual work taken away by larger peer Tata Consultancy Services (TCS) to revenue leakage, this account has been under stress for HCLTech since the pandemic. Even TCS has been affected by the same account.

The digital printing company has a shared services arrangement with these two Indian IT services firms. As per regulatory filed documents, the firm's contractual cash obligations towards both HCLTech and TCS for 2023 totalled $296 million.

However, the Indian vendors could together secure only about $227 million from the US-based workplace-technology company - short of almost $70 million from their expected revenue for the same year.