Xerox may not renew BPM contract, affecting up to 200 employees.
Company plans in-house operations and outsourcing shift to Philippines units.
Cost optimisation and restructuring drive changes in Xerox's outsourcing strategy.
HCLTech is likely to lose a business process management (BPM) contract with Xerox Corporation, which is part of a long-term contract with the American technology company. The project is set to conclude in June, after which around 170-200 employees working on the project are expected to be let go.
Xerox is unlikely to renew the BPM contract with the Noida-headquartered IT firm as it looks 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 same country.
1 May 2026
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This is reportedly because of a cost optimisation measure for Xerox that has been facing profitability challenges and trying to transform its business operations. “The majority of this BPM work Xerox will be doing in-house. Some portion of it will be going to a local third-party BPM firm in the Philippines, which would likely be an outsourcing contract for only about 30-40 people,” reported Moneycontrol.
The bigger challenge, however, will be for the 170-200 HCLTech employees, the majority of them working out of its Noida campus, who were asked to search for opportunities outside the company at least two months ago. Moneycontrol further reported that these employees were informed that the IT firm won’t be able to redeploy them on other projects.
“The project is expected to conclude in June. The first phase of the work is already done, and around 50 employees working on it are currently on the bench. They are looking for work internally and outside, but very unlikely that they will be deployed on some other projects,” said a second source.
Xerox has been a major client for HCLTech for over 17 years and across multi-billion dollar contracts. To be sure, the BPM contract is only a part of the various other technology work that HCLTech has been doing for the company.
Outsourcing Trends Evolve
According to Deloitte’s 2024 Global Outsourcing Survey, organisations are increasingly re-evaluating outsourcing arrangements to balance cost savings with operational resilience, talent availability and technology transformation goals.
The results suggest a growing tendency for firms to insource some functions, but still outsource specialised tasks, a sign of changing priorities in global business services.
