HCL Technologies Ltd has reorganized its technology services business around industry verticals, marking its biggest leadership overhaul in three years. The move reflects the company's push to sharpen industry expertise as artificial intelligence (AI) changes client demand and sales strategies.

India's third-largest software exporter has carved out dedicated industry verticals, replacing parts of its geography-led structure with sector-focused businesses. It has promoted existing executives to lead them and reassigned several senior leaders. The overhaul has also coincided with the departure of at least one key business head, according to a person with knowledge of the matter.

Tata Consultancy Services Ltd (TCS) undertook a similar leadership reshuffle last month, moving about a dozen senior executives across service lines, industry groups and country operations as it reorganized key businesses.

The restructuring at HCL Technology (HCLTech) was followed by the departure of Sudip Lahiri, who led the company's financial services business across Europe, the UK and Ireland until last month. Mint could not independently verify the reasons for his departure.

Lahiri's departure followed another senior leadership transition in April, when Avishek Chattopadhyay succeeded Ajit Kumar as chief information officer. Kumar is due to retire in January after more than 13 years at HCLTech, while Chattopadhyay has spent more than two decades at the company.

The changes come as demand remains weak across the IT services industry. HCLTech expects revenue growth of 1-4% in constant currency this fiscal year (FY27), unchanged from the guidance it reiterated last quarter. It ended FY26 with $14.66 billion in revenue, up 6% year-on-year, although revenue has declined in each of the past two quarters through June 2026.

An email sent to HCLTech on 25 July went unanswered.

From geographies to industries

Until FY25, much of HCLTech's business was organized by geography. Financial services and retail operations in the US, for instance, had dedicated leaders, while clients in those industries outside the US were managed through regional heads.

That began to change in October last year, when the company started carving out industry-specific businesses from broader regional organizations.

Retail and consumer packaged goods (CPG) were separated from the broader telecom, media and technology (TMT) and RCPG Americas business led by Anil Ganjoo. Former Ernst & Young executive Kristina Rogers was appointed to lead the new Retail and CPG business, while Ganjoo retained responsibility for the TMT segment. Rogers was the only external appointment.

The company also created dedicated businesses for mobility and Business Process Operations, appointing Pankaj Tagra and Upjit Ghuman, respectively, to lead them.

Another long-serving executive, Sandeep Kumar Saxena, became chief growth officer for Growth Markets 2, covering India, Middle East (West Asia), Africa, France, Spain, Portugal and Italy. He previously oversaw consumer, retail and growth markets across France, Africa and Iberia.

Several existing leadership roles were also recast. Ajay Bahl became global head of energy and manufacturing in October last year after previously leading the combined Manufacturing, Energy, Growth and Asset-heavy (MEGA) Industries business for the Americas. Arjun A. Sethi, who joined HCLTech in November 2024, was appointed to lead Public Sector, Aerospace & Defense and PE Practice after heading Strategic Segments.

Why now

According to two people with knowledge of the matter, the restructuring is intended to deepen HCLTech's expertise in specific industries, particularly across its largest markets in the US and Europe.

“Having a vertical setup gives us a lot more credibility when we pitch deals to customers because each domain has its own challenges. Some like financial institutions are more technically mature while some like retail and logistics are picking up pace when it comes to tech adoption,” said one of the two people.

The second person familiar with the developments said the vertical model applies only to clients in the US and Europe.

“Another aspect was that we had to deepen our focus in Europe and making verticalized offerings would help us with clients,” the person said. Europe contributes a little more than a fourth of HCLTech's revenue.

Analysts said the changes also reflect how AI is reshaping enterprise technology sales.

“This is mainly to do with the rise of new AI technologies. For sales executives to sell AI and humans in various deal constructs, the thought process needs to be different for each vertical. Whenever there is a tech reset, sales and delivery teams have to change,” said Amit Chandra, vice-president of HDFC Securities.

“HCLTech's leadership story is not one of changing the people at the top. What has changed is that HCLTech increasingly wants to own, engineer, and operate the environment in which AI runs,” said Thomas Reuner, principal analyst at Pierre Audoin Consultants.

HCL Technologies Ltd has reorganized its technology services business around industry verticals, marking its biggest leadership overhaul in three years. The move reflects the company's push to sharpen industry expertise as artificial intelligence (AI) changes client demand and sales strategies.

India's third-largest software exporter has carved out dedicated industry verticals, replacing parts of its geography-led structure with sector-focused businesses. It has promoted existing executives to lead them and reassigned several senior leaders. The overhaul has also coincided with the departure of at least one key business head, according to a person with knowledge of the matter.

Tata Consultancy Services Ltd (TCS) undertook a similar leadership reshuffle last month, moving about a dozen senior executives across service lines, industry groups and country operations as it reorganized key businesses.

The restructuring at HCL Technology (HCLTech) was followed by the departure of Sudip Lahiri, who led the company's financial services business across Europe, the UK and Ireland until last month. Mint could not independently verify the reasons for his departure.

Lahiri's departure followed another senior leadership transition in April, when Avishek Chattopadhyay succeeded Ajit Kumar as chief information officer. Kumar is due to retire in January after more than 13 years at HCLTech, while Chattopadhyay has spent more than two decades at the company.

The changes come as demand remains weak across the IT services industry. HCLTech expects revenue growth of 1-4% in constant currency this fiscal year (FY27), unchanged from the guidance it reiterated last quarter. It ended FY26 with $14.66 billion in revenue, up 6% year-on-year, although revenue has declined in each of the past two quarters through June 2026.

An email sent to HCLTech on 25 July went unanswered.

From geographies to industries

Until FY25, much of HCLTech's business was organized by geography. Financial services and retail operations in the US, for instance, had dedicated leaders, while clients in those industries outside the US were managed through regional heads.

That began to change in October last year, when the company started carving out industry-specific businesses from broader regional organizations.

Retail and consumer packaged goods (CPG) were separated from the broader telecom, media and technology (TMT) and RCPG Americas business led by Anil Ganjoo. Former Ernst & Young executive Kristina Rogers was appointed to lead the new Retail and CPG business, while Ganjoo retained responsibility for the TMT segment. Rogers was the only external appointment.

The company also created dedicated businesses for mobility and Business Process Operations, appointing Pankaj Tagra and Upjit Ghuman, respectively, to lead them.

Another long-serving executive, Sandeep Kumar Saxena, became chief growth officer for Growth Markets 2, covering India, Middle East (West Asia), Africa, France, Spain, Portugal and Italy. He previously oversaw consumer, retail and growth markets across France, Africa and Iberia.

Several existing leadership roles were also recast. Ajay Bahl became global head of energy and manufacturing in October last year after previously leading the combined Manufacturing, Energy, Growth and Asset-heavy (MEGA) Industries business for the Americas. Arjun A. Sethi, who joined HCLTech in November 2024, was appointed to lead Public Sector, Aerospace & Defense and PE Practice after heading Strategic Segments.

Why now

According to two people with knowledge of the matter, the restructuring is intended to deepen HCLTech's expertise in specific industries, particularly across its largest markets in the US and Europe.

“Having a vertical setup gives us a lot more credibility when we pitch deals to customers because each domain has its own challenges. Some like financial institutions are more technically mature while some like retail and logistics are picking up pace when it comes to tech adoption,” said one of the two people.

The second person familiar with the developments said the vertical model applies only to clients in the US and Europe.

“Another aspect was that we had to deepen our focus in Europe and making verticalized offerings would help us with clients,” the person said. Europe contributes a little more than a fourth of HCLTech's revenue.

Analysts said the changes also reflect how AI is reshaping enterprise technology sales.

“This is mainly to do with the rise of new AI technologies. For sales executives to sell AI and humans in various deal constructs, the thought process needs to be different for each vertical. Whenever there is a tech reset, sales and delivery teams have to change,” said Amit Chandra, vice-president of HDFC Securities.

“HCLTech's leadership story is not one of changing the people at the top. What has changed is that HCLTech increasingly wants to own, engineer, and operate the environment in which AI runs,” said Thomas Reuner, principal analyst at Pierre Audoin Consultants.