The development comes months after Xerox revealed its intention in January to reduce its workforce by 15 percent as part of a ‘reinvention’ strategy. The US-based workplace technology company (a global leader in digital print technology and related solutions) has also an $1.3 billion outsourcing deal arrangement with HCLTech, signed in 2019.
As per regulatory filed documents with US Securities and Exchange Commission (SEC), the firm’s contractual cash obligations for the year ended December 2023, towards both HCLTech and TCS for 2023 totalled $296 million. But both the Indian vendors could together secure only about $227 million from the US-based company – almost $70 million short of their expected revenue for the same year.
Under the expanded agreement, TCS will consolidate Xerox’s technology services to better business outcomes, migrate complex legacy data centers to the Azure public cloud, deploy a cloud-based digital ERP platform to transform business processes and use generative artificial intelligence (Gen AI) to help drive sustainable growth, the company said in an exchange filing.
Tino Lancellotti, chief information officer, Xerox, said, “This digital transformation initiative is an important enabler for reinventing our operating model to simplify our geographical, offering, and operational footprint while transforming our clients’ experience. We believe TCS is the right partner to deliver such a complex program, given their proven experience both within Xerox and across the industry.”
V Rajanna, president, technology, software and services, TCS, said, “Xerox and TCS have been on a collaboration and co-innovation journey for over two decades, which has grown from strength to strength transforming business functions from finance to HR along the way. We are now excited to partner with Xerox to support their Reinvention to create the foundation for long-term, sustainable growth…”
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Amit Bajaj, president, North America, TCS, said, “Xerox’s Reinvention is a bold initiative founded in the belief that a 100+ year-old organization can rapidly transform itself to be a much simpler, agile, and technology-led firm to better serve its clients. GenAI has catalyzed the next S-curve of enterprise transformation, and we are proud to be partnering with legends of American industry, such as Xerox.”
