More than a month after signing an IT transformation agreement with Tata Consultancy Services (TCS), digital printing company Xerox has announced a $355 million technology spending commitment under the seven-year contract.
In a regulatory filing in the US, Xerox also disclosed spending commitments of $125 million with Microsoft and $45 million with SAP over the same period as part of this multi-party agreement.
TCS did not respond to an email seeking comment sent on Monday morning.
In June, TCS announced the expansion of its partnership with Xerox to execute an end-to-end transformation programme, without disclosing the deal value. The Mumbai-based company has been providing business processing outsourcing services for Xerox’s global finance and accounting organization.
In its recent regulatory filing, Xerox stated it entered into a seven-year agreement with TCS to consolidate its technology services to improve business outcomes, migrate legacy data centers to the cloud, deploy a cloud-based digital ERP platform, and incorporate generative artificial intelligence (GenAI) into operations to drive sustainable growth.
As part of the TCS deal, Xerox also entered into seven-year agreements with SAP, which will provide a cloud-based digital ERP platform, and with Microsoft for its Azure cloud platform services.
TCS will develop a new cloud-first operating model and build an AI-first enterprise platform for Xerox.
The expanded deal follows Xerox’s announcement of a 15% workforce reduction as part of a “reinvention” strategy. Additionally, Xerox has a $1.3 billion outsourcing deal with Noida-based HCLTech, signed in 2019.
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