Nearly 200 HCLTech employees could be impacted as Xerox transfers work to the Philippines

A long-running business process management (BPM) engagement between Xerox and HCLTech is set to conclude this month, potentially affecting up to 200 employees as the US technology company reshapes its outsourcing strategy and brings more work in-house.

According to reporting by Moneycontrol, Xerox Corporation is unlikely to renew a BPM contract with HCLTech, ending a relationship that has formed part of the broader partnership between the two companies for more than 17 years.

The project is scheduled to conclude in June. Once it ends, around 170 to 200 employees associated with the engagement are expected to be impacted.

The development comes as Xerox continues efforts to improve profitability and streamline operations amid wider changes in how global companies manage outsourcing and shared services functions.

Xerox shifts work to Philippines operations

Moneycontrol reported that Xerox plans to move a significant portion of the work currently handled by HCLTech to its own operations in the Philippines.

The remaining work is expected to be outsourced to a local third-party BPM provider in the country.

People familiar with the matter told Moneycontrol that the move forms part of a broader cost optimisation initiative at Xerox.

According to the report:

• The majority of the BPM work will move to Xerox's in-house Philippines operations

• A smaller portion is expected to be transferred to a local third-party BPM firm

• The outsourced component could involve work equivalent to around 30 to 40 employees

The shift reflects a growing trend among multinational companies seeking greater control over business operations while selectively outsourcing specialised functions.

Employees face limited redeployment prospects

The biggest immediate impact is likely to be felt by employees working on the Xerox account, many of whom are based at HCLTech's Noida campus.

According to Moneycontrol, affected employees were informed nearly two months ago that they should begin exploring opportunities both within and outside the company.

The report stated that HCLTech is unlikely to redeploy many of the workers to alternative projects.

One source quoted by Moneycontrol said the first phase of the project has already been completed and approximately 50 employees are currently on the bench, with limited prospects of being reassigned internally.

The source added that the project is expected to conclude fully in June.

End of one chapter in a long client relationship

While the BPM engagement is ending, Xerox remains one of HCLTech's longest-standing clients.

According to Moneycontrol, the two companies have worked together for more than 17 years across multiple technology and business services engagements, including contracts worth billions of dollars over the course of the relationship.

The BPM project represents only one component of the wider technology work that HCLTech continues to deliver for Xerox.

As a result, the conclusion of this engagement does not necessarily signal the end of the broader client relationship between the two companies.

Outsourcing priorities continue to evolve

The Xerox decision comes amid changing dynamics in the global outsourcing industry.

According to Deloitte's 2024 Global Outsourcing Survey, organisations are increasingly reassessing outsourcing arrangements to balance cost efficiency with operational resilience, talent availability and digital transformation requirements.

The survey found that companies are becoming more selective about which functions they outsource and which they retain internally.

That shift has encouraged a hybrid approach where businesses insource strategic operations while continuing to rely on external partners for specialised services.

Industry observers view Xerox's reported move as part of this wider trend, where organisations seek greater operational control without fully abandoning outsourcing models.

What comes next

With the project scheduled to end this month, attention will now turn to how many affected employees are ultimately able to secure alternative roles within HCLTech or elsewhere.

For Xerox, the transition marks another step in its ongoing operational restructuring efforts. For HCLTech, it highlights the challenges service providers face as clients increasingly recalibrate outsourcing arrangements in response to cost pressures, automation initiatives and changing business priorities.

As enterprises rethink how and where work gets done, the balance between outsourcing and insourcing is becoming an increasingly important factor shaping the future of the global BPM industry.