Narayan AmmachchiIndian IT services provider HCLTech has secured a US$1.14 billion digital transformation contract from an unnamed European client, marking one of the company’s largest-ever deals and underscoring growing enterprise spending on AI-led IT modernization.
The five-and-a-half-year agreement, with an option to extend for another five years, is expected to contribute approximately US$207 million to US$230 million in annual revenue. HCLTech said the contract is entirely new business rather than a renewal or restructuring of an existing client engagement.
While HCLTech did not disclose the customer’s identity, multiple media reports citing people familiar with the matter said the client is likely German luxury automaker Mercedes-Benz. Neither company has confirmed the reports.
Under the agreement, HCLTech will deploy an AI-powered operating model to modernize and manage the client’s digital workplaces, global enterprise network, cybersecurity, and automation systems. The contract reflects a broader shift in the IT services industry from traditional infrastructure maintenance toward higher-value, AI-enabled digital transformation services.
The deal is HCLTech’s largest since its US$2.1 billion agreement with Verizon in 2023 and strengthens its long-term order book by roughly $985 million.
The contract also builds on the company’s expanding AI strategy. HCLTech recently invested US$150 million in Indian startup Sarvam AI and has entered enterprise AI collaborations with OpenAI. The company said its annualized Advanced AI revenue has surpassed US$620 million, highlighting rising demand for AI-driven enterprise services.
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