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Xerox Commits $355 Million to Transformative Seven-Year Deal with TCS

IT Services

Xerox Commits $355 Million for IT Innovation

Business Honor
09 August, 2024

Xerox's commitment to innovation and efficiency, leveraging top-tier technology partners to navigate its future course

In a bold move to spearhead its technological transformation, Xerox has earmarked a staggering $355 million for a seven-year IT agreement with Tata Consultancy Services (TCS). This announcement comes over a month after the digital printing giant inked the deal, which is poised to revolutionize its operational landscape.

In a recent regulatory filing in the US, Xerox further disclosed additional commitments of $125 million with Microsoft and $45 million with SAP, making this a multi-faceted strategic partnership. Despite reaching out for comments, TCS has yet to respond.

Back in June, TCS revealed its expanded collaboration with Xerox to undertake an extensive end-to-end transformation program, although the financial specifics were not disclosed at that time. TCS has long been a crucial partner, delivering business processing outsourcing services to support Xerox’s global finance and accounting operations.

Xerox's filing last week provided clarity on the scope and scale of this initiative. The seven-year agreement with TCS aims to consolidate Xerox's technology services, enhance business outcomes, migrate legacy data centers to the cloud, deploy a cloud-based digital ERP platform, and integrate generative artificial intelligence (GenAI) into its operations to fuel sustainable growth.

The partnership with TCS is complemented by concurrent seven-year agreements with SAP and Microsoft. SAP will deliver a cloud-based digital ERP platform, while Microsoft's Azure will provide essential cloud platform services.

TCS is set to develop a new cloud-first operating model and construct an AI-first enterprise platform for Xerox. This expanded collaboration is a strategic move following Xerox's announcement of a 15% workforce reduction as part of its “reinvention” strategy. Additionally, Xerox maintains a significant $1.3 billion outsourcing deal with HCLTech, initiated in 2019.