HCLTech has announced the acquisition of Hewlett Packard Enterprise’s telecom solutions business in a move aimed at strengthening its artificial intelligence driven network and digital engineering capabilities. The transaction marks a strategic expansion of HCLTech’s telecom portfolio as global operators accelerate investments in cloud native networks, automation and next generation connectivity.
The acquired business includes HPE’s communications technology group assets that support telecom operators in building, managing and modernising large scale networks. These solutions are used by telecom service providers worldwide for network planning, operations, assurance and monetisation. With this acquisition, HCLTech gains access to a specialised portfolio that aligns with growing industry demand for AI enabled network transformation.
HCLTech stated that the acquisition will enhance its ability to deliver end to end solutions across network engineering, operations and digital services. As telecom operators transition to 5G and explore early pathways toward 6G, the complexity of managing distributed, software driven networks has increased. AI led automation is emerging as a key enabler in improving network efficiency, reducing operational costs and supporting new digital services.
The deal is expected to deepen HCLTech’s relationships with global telecom clients by integrating HPE’s telecom software assets into its existing engineering and IT services portfolio. The company already works with telecom operators across network lifecycle management, enterprise solutions and digital experience platforms. The addition of HPE’s capabilities is intended to strengthen its positioning as a technology partner for telecom transformation.
HPE’s telecom solutions business focuses on helping operators manage hybrid networks that span legacy infrastructure and modern cloud native environments. The portfolio supports functions such as network analytics, orchestration and service assurance. These capabilities are increasingly relevant as operators seek to deploy AI models that can predict network issues, optimise performance in real time and improve service reliability.
HCLTech has highlighted artificial intelligence as a central theme of its growth strategy. Over the past few years, the company has expanded investments in AI engineering, cloud platforms and industry specific solutions. By acquiring a telecom focused software business with embedded AI and analytics capabilities, HCLTech aims to accelerate innovation in areas such as autonomous networks and intelligent service operations.
From HPE’s perspective, the transaction allows the company to sharpen its focus on core infrastructure and cloud offerings while ensuring continuity for telecom customers using its solutions. HPE has maintained a strong presence in telecom infrastructure, and the transfer of its telecom software assets to HCLTech reflects a broader industry trend toward specialisation and partnerships.
Industry analysts note that telecom operators are under pressure to modernise networks while managing rising costs and competitive demands. AI driven network management tools are increasingly seen as essential to meeting these challenges. Vendors that can combine deep telecom domain expertise with AI and cloud engineering capabilities are expected to play a growing role in operator strategies.
The acquisition also reflects a wider convergence between IT services and telecom technology. As networks become more software defined, the skills required to build and manage them increasingly overlap with enterprise IT and cloud engineering. HCLTech’s move positions it at the intersection of these domains, enabling it to support telecom clients with integrated solutions that span network and IT environments.
HCLTech has indicated that employees associated with the acquired business will transition as part of the deal, helping preserve domain expertise and customer continuity. The company plans to integrate the team into its engineering and telecom services units, supporting innovation and delivery across global markets.
For telecom operators, the combination of HCLTech’s services capabilities and the acquired telecom software portfolio could offer a more comprehensive partner ecosystem. Operators are seeking vendors that can support large scale transformation programmes while delivering measurable outcomes in areas such as network efficiency, service quality and time to market for new offerings.
The timing of the acquisition aligns with increased industry focus on AI led networks. Autonomous network operations, where AI systems manage routine tasks and respond to changes without human intervention, are gaining traction. These approaches are expected to become more prominent as networks grow in scale and complexity with the expansion of 5G and edge computing.
HCLTech has said the acquisition will support its long term vision of building AI first solutions across industries. In the telecom sector, this includes developing platforms that leverage machine learning for predictive maintenance, traffic optimisation and customer experience management. The company views AI not only as a technology layer but as a core driver of business value for clients.
The transaction is subject to customary regulatory approvals and closing conditions. Financial details of the deal were not disclosed. HCLTech expects the acquisition to be accretive over time as it integrates the portfolio and expands its reach within the global telecom market.
As telecom networks continue to evolve into software centric and data driven ecosystems, partnerships and acquisitions that combine domain expertise with advanced technology capabilities are likely to increase. HCLTech’s acquisition of HPE’s telecom solutions business underscores the growing importance of AI led network capabilities in shaping the future of connectivity and digital services.