HCLTech acquires HPE telco unit to strengthen 5G, AI services

UTTAR PRADESH, INDIA, and TEXAS, UNITED STATES — HCLTech has signed a definitive agreement to purchase Hewlett Packard Enterprise’s Telco Solutions business, strengthening its position in the global telecommunications market.

The acquisition, expected to close in about six months pending regulatory approvals, aims to significantly expand HCLTech’s intellectual property portfolio and engineering talent in the telecommunications sector, accelerating its shift toward higher-value services.

HCLTech’s global reach and telecom expansion

HCLTech has established itself as a global technology firm, with consolidated revenues reaching $14.2 billion over the twelve months ending September 2025, driven by its industry-leading capabilities in AI, digital, and engineering services across major market verticals. 

This extensive reach, serving clients across financial services and the public sector, underscores its role as a broad-based enabler of enterprise transformation, a strategic approach complemented by more focused players in the technology ecosystem. 

The company ranked #12 in the OA500 2025, an objective index of the world’s top 500 outsourcing companies. The 2026 edition of the OA500 is expected to be released in March.

Meanwhile, HPE Telco Business Solutions operates as a specialized force within the telecommunications sector, providing critical Operations Support Systems (OSS) assurance and public 5G subscriber management software to communications service providers. 

Its growth strategy is anchored in developing telecom-specific products and leading large, complex network transformation projects, positioning it as a key partner for CSPs navigating the evolving digital landscape.

Expansion through IP, talent acquisition

The deal grants HCLTech industry-leading IP for Operations Support Systems (OSS), Home Subscriber Server (HSS), and 5G Subscriber Data Management (SDM), which currently support more than 1 billion devices across over 200 global deployments. 

This directly builds on HCLTech’s earlier 2024 acquisition of certain assets from HPE’s Communications Technology Group, including Business Support Systems (BSS), network transformation, and Network-as-a-Service (NaaS) offerings.

The human element is equally critical to this strategic expansion. As part of the agreement, nearly 1,500 engineering and telecom specialists from 39 countries will transition to HCLTech’s global delivery team. 

This infusion of talent is designed to help scale the newly integrated business rapidly. Chief Growth Officer and Global Head of Telecom, Media, Publishing & Entertainment and Technology (TMT), Anil Ganjoo of HCLTech emphasized, “Integrating this highly skilled HPE team and their market-proven IP strengthens our product-aligned model and accelerates our shift toward higher-value, IP-led services and non-linear growth.”

Accelerating telecom digital transformation

This acquisition empowers Communication Service Providers (CSPs) to evolve from traditional telecommunications companies into full-fledged technology firms, a shift often termed “telco to techco,” as noted by Ganjoo. 

HCLTech positions itself as a key enabler of this transformation by leveraging the newly acquired capabilities to offer more advanced, software-defined services. 

The Telco Solutions business delivers advanced AI-led closed-loop network automation capabilities, essential for seamless network monetization and the development of AI-led autonomous networks.

HPE’s Executive Vice President, President and General Manager, Networking, Rami Rahim, noted that “This transaction will yield benefits for CSPs for many years to come, as both HPE and HCLTech pursue their unique, differentiated approaches to supporting this vital sector of the market, through strategic focus and commitment to innovation.”

This move signals a focused commitment to providing CSPs with the integrated, AI-driven infrastructure and support systems necessary to compete in a rapidly evolving digital landscape, shifting the industry value chain toward higher-value software and service models.