HCLTech has launched a dedicated business unit called Neo.AI to serve mid-sized businesses, making it the first major Indian IT services company to create a separate division for this fast-growing market. The move marks a strategic shift for the company, which has traditionally focused on large global enterprises, and reflects the growing role of artificial intelligence in transforming IT services.
By combining AI-powered automation with human expertise, HCLTech aims to expand its customer base and create a new engine for long-term growth.
Targeting A Massive Untapped Market
Neo.AI will primarily focus on companies with annual revenues ranging between $1 billion and $5 billion. These businesses often require enterprise-grade technology solutions but may not have the budgets or dedicated IT resources of Fortune 500 companies.
The new business unit will offer software development, application maintenance, data analytics and AI-driven IT services using HCLTech’s proprietary AI platforms.
This strategy allows HCLTech to diversify beyond its traditional dependence on a small number of large enterprise clients.
AI To Handle Majority Of IT Work
One of the biggest highlights of Neo.AI is its heavy reliance on artificial intelligence. HCLTech plans to deliver nearly 60% of client work through AI agents, while the remaining 40% will continue to be handled by human professionals.
The company intends to onboard multiple customers onto a shared AI-enabled software platform that can be customised according to each client’s business requirements. This model is expected to improve efficiency, reduce costs and accelerate project delivery.
Competing With Mid-Tier IT Companies
The launch places HCLTech in direct competition with established mid-sized IT services companies such as Coforge, Persistent Systems and Mphasis, which have traditionally served this customer segment.
Reports indicate that Neo.AI has already taken over around 90 customer accounts and is targeting more than 500 additional clients. The unit currently has approximately 300 executives, with its sales network largely in place.
Expanding Beyond Fortune 500 Clients
India’s largest IT companies derive a significant share of their revenue from Fortune 500 corporations. HCLTech’s new strategy aims to reduce dependence on a limited number of large accounts by creating a scalable business model for smaller enterprises.
The company believes AI-powered shared services will make advanced technology solutions more affordable for mid-market businesses while opening up a new source of recurring revenue.
Strengthening HCLTech’s AI Strategy
The launch of Neo.AI aligns with HCLTech’s broader investment in artificial intelligence. The company has recently expanded its AI capabilities through new platforms, AI services and infrastructure investments, including large AI data centre projects.
As enterprises increasingly adopt AI for software development, automation and analytics, HCLTech expects Neo.AI to play a key role in driving its next phase of growth.
Summary
HCLTech has launched Neo.AI, a dedicated business unit for companies with annual revenues of $1 billion to $5 billion, becoming the first major Indian IT services firm to target this segment separately. The company plans to automate nearly 60% of IT work using AI agents, while expanding beyond Fortune 500 clients and creating a new growth avenue in the rapidly growing mid-market technology services sector.
