Indian tech firm HCLTech has signed a major deal with a Europe-based Fortune Global 50 firm to establish an artificial intelligence model for the latter. This is one of the biggest deals announced by an Indian tech firm this year.
In a filing at the National Stock Exchange on Thursday, July 2, HCLTech disclosed that the initial term of the agreement is around five years, which is extendable for another term of same duration. The value of the initial term of the deal is $1.14 billion, according to the filing.
“HCLTech is pleased to announce the signing of a significant strategic partnership with a Europe headquartered, Fortune Global 50 Firm to establish an AI driven operating model to transform and manage their Global Digital Workplace and Enterprise Networks,” the filing read.
Also read: Viral chaos as battery management apps turn smartphones into ‘kill switch’ for e-rickshaws
“The initial term of the agreement is from July 2026 to December 2031, extendable for a further period of 5 years. The estimated value of the agreement during the initial term is US $ 1.14 Billion. This is entirely a net new business for the Company,” it added.
HCLTech has, however, not disclosed the identity of the company but clarified that it is Europe-based and is a Fortune Global 50 firm.
HCLTech is a global technology company and calls itself “home to more than 227,000 people across 60 countries, delivering industry-leading capabilities centered around AI, digital, engineering, cloud and software, powered by a broad portfolio of technology services and products”, according to its website.
Also read: After WhatsApp, Centre’s notices to Telegram, Signal today over username feature
C Vijayakumar, CEO and managing director of the company, told CNBC in an interview that the ambition of the firm is to “be the best AI solutions company in the world”.
Fortune Global 50 refers to the top top 50 companies in the ‘Fortune Global 500’, which is an annual ranking of the world’s 500 largest corporations.
Also read: Why PM Modi referred to Japanese PM Takaichi as his ‘little sister’
According to Fortune, the corporations on their annual list of the world’s 500 largest companies combined to “generate $41.7 trillion in revenue in 2024, up 1.8% from the previous year”.
“Together, these firms employ 70.1 million people, and their revenue represents more than one-third of the world’s GDP. The Global 500 earned $2.98 trillion in profit in its second-most-profitable year ever; $1 trillion of that was generated by companies in finance. For the 12th consecutive year and the 20th time since 1995, Walmart was No. 1 on the list,” reads its website.
