# Google cuts HCLTech outsourcing contract by $50 million a year

2026-08-07T09:57:09+00:00 | Business & Economy | Indian Opinion Desk

Corroboration: 1 independent outlet

Google has reduced its outsourcing contract with HCLTech by about $50 million annually, Livemint reports, as it consolidates vendors and expands automation. The contract, estimated at roughly $200 million a year, has supported Google’s engineering operations for nearly a decade. The cut would equal about 0.3% of HCLTech’s annual revenue and could reduce around 6% of its projected incremental growth this financial year. About 1,000 HCLTech employees working on the account are expected to move to other projects rather than face widespread job losses. The change reflects pressure on India’s $315-billion IT services sector as clients seek fewer vendors and use AI for coding, testing and routine engineering. HCLTech continues to win large deals, including a reported $1.14-billion European contract.

## Coverage

- livemint.com <https://www.livemint.com/industry/infotech/is-ai-slowly-killing-it-outsourcing-inside-google-s-50-million-hcltech-contract-cut-11785760935589.html>

Tags: Artificial intelligence, Google, HCLTech, Indian IT, IT outsourcing
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