HCLTech bags $1.14 billion AI deal

Noida-headquartered IT services provider HCL Technologies (HCLTech) on Friday announced that it has signed a deal with a Europe-based Fortune Global 50 company to establish an AI-driven operating model for transforming and managing the client's global digital workplace and enterprise networks.

The agreement -- which runs from July to December 2031 with an option to extend it for another five years -- has an estimated value of $1.14 billion during the initial term, the IT company said in an exchange filing.

It added that the engagement is entirely net-new business and is expected to strengthen its order book ahead of the company's quarterly earnings.

Under the partnership, HCLTech will leverage artificial intelligence to modernise and manage the customer's global digital workplace and enterprise network operations.

The deal marks another milestone in HCLTech's AI strategy, following a series of partnerships, acquisitions and investments announced in recent months.

In June, the company signed a long-term strategic agreement with a renewable energy company to consolidate IT services and drive AI-led operational transformation.

It also partnered with Nokia to accelerate autonomous telecom network optimisation using AI-driven rApps and teamed up with Circles and GreySkies to develop AI-powered telecom software solutions.

Separately, HCLTech completed the acquisition of business intelligence platform Jaspersoft from Cloud Software Group and invested in sovereign AI startup Sarvam AI as part of its $234 million Series B funding round.

Following the announcement, HCLTech shares jumped as much as 5.68 per cent to an intraday high of Rs 1,138.75 on the BSE in early trade. The stock has touched a 52-week high of Rs 1,770 and a 52-week low of Rs 1,030 on the exchange.

The IT stock has remained under pressure, falling over 30 per cent in the last one year as well as over the past six months.