Exclusive: HCLTech's Xerox BPM Contract Expires, Impacting 170-200 Employees

HCLTech to Lose BPM Contract with Xerox, Affecting 170-200 Employees

HCLTech, a leading IT services giant, is expected to lose a business process management (BPM) contract with Xerox Corporation, a part of a larger long-standing contract with the American technology company. The contract loss is expected to impact around 170-200 employees working on the project, who will be let go once their tenure ends in June, according to people familiar with the development.

The loss of the BPM contract is attributed to Xerox's decision to take part of the work in-house to its Philippines unit, while outsourcing the remaining work to a local third-party BPM firm in the country. This move is part of a cost optimization measure for Xerox, which has been facing profitability challenges and attempting to transform its business operations.

The affected employees, majority of whom are working out of HCLTech's Noida campus, were asked to search for opportunities outside the company at least two months ago. Sources indicate that these employees were informed that the IT firm won't be able to redeploy them on other projects, making it unlikely that they will be deployed on some other projects.

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The BPM contract loss is a significant development, given that Xerox has been a major client for HCLTech for over 17 years, with the company working across multi-billion dollar contracts. The contract is only a part of the various other technology work that HCLTech has been doing for the company.

In addition to the BPM contract loss, HCLTech's US subsidiary has initiated plans to lay off 120 employees in Florida, as part of an operational restructuring linked to a client engagement at an Orlando worksite. The layoffs began on May 29 and will continue through December 31, with a small number of additional separations extending into early 2027.

HCLTech has a workforce of over 226,000 in 60 countries, with the company reportedly eliminating over 100 positions from its workforce on another project in Florida on February 19, 2026. This development reflects the ongoing demand uncertainties for Indian IT services companies as clients reassess technology budgets and strategies amid the growing need for automation and cost optimization to ride through macroeconomic headwinds.

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