HCL Technologies (HCLTech), one of India’s largest IT services companies, has launched a dedicated business unit focused on serving small and mid-sized businesses. This marks a new push into the fast-growing mid-market technology segment.
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The new unit, called Neo. AI, will combine HCLTech’s AI capabilities with its IT services portfolio to offer software development, application maintenance and data analytics solutions to smaller businesses. The move is expected to help the company reach clients that may have traditionally relied on mid-sized IT services providers for their technology needs.
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With Neo. AI, HCLTech is also stepping into more direct competition with mid-tier IT companies such as Coforge, Persistent Systems and Mphasis, which have built significant businesses by catering to small and mid-sized enterprises. The new unit is aimed at businesses with relatively smaller technology budgets. HCLTech plans to use its AI Force platform to deliver shared technology services at scale, allowing these companies to access IT capabilities without the cost of maintaining large technology teams.
The strategy could put pressure on mid-tier IT services firms that depend heavily on small and mid-sized companies for a significant share of their business. By using AI to automate parts of software development and IT operations, HCLTech hopes to offer services at a competitive cost while expanding its presence in the mid-market segment.
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HCLTech plans to deliver around 60% of the IT work through in-house AI agents, while human employees will handle the remaining 40%. The approach reflects the broader shift in the IT services industry towards AI-driven delivery models, where companies are increasingly combining AI agents with human expertise.
Indrani Priyadarshini is a journalist and editorial professional specialising in technology, artificial intelligence, smart cities, green energy, and digital transformation. With over four years of experience in tech journalism and digital media, she is known for turning complex industry developments into clear, engaging, and insightful stories. Her expertise spans reporting, editorial strategy, digital publishing workflows, and in-depth coverage of emerging technologies shaping the future.
