HCL Technologies Ltd, India’s third-largest IT services firm, is set to lose up to $50 million in annual revenue as Google consolidates its vendor base, according to livemint.com. The vendor consolidation drive, led by Marc Berson who became head of Google Internal Systems in February last year, is expected to impact about a quarter of HCLTech’s business from Google.
The reduction primarily affects application development and maintenance services, one of the three key areas HCLTech handles for Google. The move follows Google’s broader strategy to bundle work and reduce reliance on multiple IT service providers amid rising adoption of automation tools. This shift has prompted Google to revisit and trim its existing technology contracts with vendors including HCLTech.
This development highlights a growing trend among large global tech companies to streamline their IT spending and vendor relationships. Indian IT firms like HCLTech, which have historically depended on large clients such as Google for significant revenue, are now facing pressure as these clients adopt automation and consolidate contracts. The $50 million potential loss underscores the challenges Indian IT providers face in adapting to evolving client demands and technology landscapes.
HCLTech’s exposure to Google accounts for roughly 25% of its annual business with the client, making the vendor consolidation a notable revenue risk. The company has yet to disclose its specific response or mitigation plans. The vendor consolidation effort by Google began after Marc Berson’s appointment in February 2025, marking a strategic shift in how Google manages its internal systems and vendor ecosystem.