HCLTech bags $1.14 billion AI-led digital transformation deal from European client

HCLTech has secured a $1.14 billion digital transformation contract from a major European enterprise, adding another large deal to India's IT services sector as companies continue to invest in artificial intelligence-led enterprise modernisation.The company said the 4.5-year agreement, which includes an option to extend for an additional five years, will see it build and manage an AI-driven operating model for the client's global digital workplace and enterprise network infrastructure.While HCLTech did not disclose the identity of the customer, it clarified that the engagement represents new business rather than an expansion or renewal of an existing contract.The announcement was positively received by investors, with HCLTech shares rising around 4.6% in early trade. The broader Nifty IT index also advanced, reflecting optimism around large deal wins and enterprise technology spending.Also read: WhatsApp issues clarification on usernames, says only legitimate owners can claim protected namesAccording to the company, the engagement will focus on using AI to streamline workplace operations, strengthen enterprise network management and improve operational efficiency across the client's global technology environment.The contract comes ahead of HCLTech's first-quarter FY27 earnings, scheduled to be announced on July 13. The company has guided for 1% to 4% revenue growth for the current financial year, amid cautious enterprise spending and continued demand for AI-enabled digital transformation projects.Large, multi-year technology contracts have become an increasingly important growth driver for Indian IT services firms as enterprises prioritise automation, cloud migration and AI integration while keeping overall technology budgets under close scrutiny. (Inputs from Reuters)