Google has cut its annual outsourcing contract with HCLTech by roughly $50 million, reducing an application development and maintenance deal from about $200 million a year to around $150 million, according to reports first published August 3, 2026. Around 1,000 HCLTech employees working on the Google account will be reassigned to other engagements over a transition period of roughly three months, rather than laid off.
The reports describe the cut as vendor consolidation. Google is reducing the number of outsourcing partners it uses for engineering and application work, and is increasing use of AI-assisted coding and testing tools for work HCLTech previously handled. Reports tie the decision to Marc Berson, who has led Google’s Internal Systems organisation since February 2025. Google has not commented publicly on the specifics.
The contract being reduced is separate from HCLTech’s Google Cloud partnership, under which the two companies have previously announced joint initiatives on generative AI tools, including a 2023 partnership expansion and a 2024 initiative to scale Google’s Gemini models for enterprise clients. The reduction reported this week affects the application development and engineering services HCLTech provides to Google’s own internal systems, not the Google Cloud partnership.
HCLTech reported roughly $14.7-14.8 billion in trailing 12-month revenue as of mid-2026, making the $50 million reduction approximately 0.3% of total revenue. One report estimated the reduction could lower HCLTech’s incremental growth for the current financial year by about 6%. The application development and engineering work affected had been part of HCLTech’s Google account for close to a decade. HCLTech has also secured a new $1.14 billion multi-year contract with a European Fortune Global 50 company, according to the same reporting.
