HCL Technologies Ltd has created a new business unit called Neo.AI, designed specifically to serve small and mid-sized enterprises. This initiative makes the company the first Indian IT services provider to establish a dedicated division for this market segment.
The new unit will focus on clients with annual revenues between $1 billion and $5 billion. Neo.AI plans to provide software development, maintenance, and data analytics services to these mid-market customers, leveraging HCLTech’s existing artificial intelligence platform and IT offerings.
This move represents a strategic diversification for the company. Historically, the largest Indian IT services firms have relied heavily on large enterprise accounts. The country’s top five technology companies, including Tata Consultancy Services Ltd, Infosys Ltd, Wipro Ltd, and Tech Mahindra Ltd, have traditionally drawn significant revenue from Fortune 500 clients.
Each of these major firms reportedly derives at least one-fifth of its total revenue from its ten largest accounts.
By targeting the mid-market, HCLTech aims to reduce its dependence on large corporate clients and create a new growth engine. The strategy is intended to broaden the company’s revenue base beyond its traditional focus on large enterprises.
The establishment of Neo.AI follows a model previously adopted by Accenture Plc, which has successfully built a business serving smaller companies. HCLTech, currently the third-largest IT services company in India, is now entering this space with a specialized structure.
