HCL Technologies is bracing for a hit to its Google account, with the tech giant paring back outsourced work worth an estimated $50 million a year. The scale-back stems from Google’s push toward vendor consolidation and heavier reliance on automation to run its IT operations.The affected work spans application development, engineering and infrastructure management — areas where Google has increasingly been folding tasks into AI-driven tools rather than routing them to external service providers.
Industry watchers peg the hit at roughly a quarter of HCLTech’s total Google business, underlining just how central the account has been to the IT major’s revenue base.The restructuring is being driven by Marc Berson, who took over Google’s Internal Systems in 2025 and has since been narrowing the company’s vendor base.
Reports suggest HCLTech will retain parts of its engineering and enterprise software integration mandate, even as it loses ground on application development and maintenance — the segments most exposed to automation. For HCLTech, the bigger concern now is what becomes of the nearly 1,000 employees who were working on this account. The plan is to shift them onto other projects internally, but analysts will be watching closely to see how well that transition actually goes when quarterly numbers come in.
Across India’s IT services sector, big global clients are leaning on AI-driven automation to renegotiate contracts and cut down on outsourcing spend. For an industry that has long run on scale and headcount, that’s a real shift in how tech work gets valued and handed out — one that goes far beyond this one client relationship.
HCLTech has not issued a detailed public statement on the redeployment plan, and analysts say client commentary in coming quarters will offer more clarity on how the broader trend is reshaping revenue expectations across the sector.