From offshoring to outcomes: Roshni Nadar Malhotra and HCLTech’s vendor response to the AI disruption of IT outsourcing

This teaching case examines the strategic challenges faced by HCL Technologies Limited (HCLTech) as Generative Artificial Intelligence (AI) reshapes the global technology services industry. Set in 2026, the case places students in the position of Roshni Nadar Malhotra, Chairperson of HCLTech, who must determine the appropriate pace and scale of the company’s AI-driven transformation. Although HCLTech has invested significantly in AI-enabled platforms, strategic partnerships, workforce reskilling, and enterprise AI solutions, AI-related revenues remain a relatively small proportion of the company’s overall business. At the same time, Generative AI is challenging traditional labor-based service models, intensifying competition, and creating new expectations regarding productivity, innovation, and responsible AI governance. Students are required to evaluate the opportunities and risks associated with three strategic alternatives: Accelerated AI Leadership, Balanced Transformation, and Selective Client-Led Expansion. The case encourages analysis of digital transformation, organizational capability development, workforce reskilling, business-model evolution, and AI governance in a technology-intensive environment. Designed for MBA, Executive MBA, and postgraduate courses in Strategic Management, Digital Transformation, Information Technology Strategy, and Innovation Management, the case enables application of frameworks such as Dynamic Capabilities, Resource-Based View (VRIO), Organizational Ambidexterity, and Stakeholder Theory to a contemporary strategic decision.