HCL Tech's AR Gamble: The Next Big Thing in IT Infrastructure?

Wesley ParkFriday, May 9, 2025 6:50 am ET
38min read

The world of IT infrastructure is about to get a whole lot smarter—and HCL Technologies (HCL) is betting big on augmented reality (AR) to lead the charge. In a move that could redefine how companies manage their tech ecosystems, HCL has partnered with CareAR and ServiceNow to launch an AR-driven platform that promises to slash downtime, boost efficiency, and future-proof businesses. Let’s dive into why this could be a huge win for investors—and what risks lurk in the shadows.

The Tech Stack: AR Meets AI, Backed by Heavy Hitters

HCL’s new solution isn’t just about gimmicky glasses—it’s a full-stack platform integrating three powerhouses:
1. CareAR’s enterprise-grade AR tools for real-time remote troubleshooting.
2. ServiceNow’s IT platform for workflow automation and predictive analytics.
3. HCL’s own AI expertise, including its GenAI and Agentic AI frameworks.

The goal? To turn IT infrastructure management into a seamless, self-healing system. For industries like manufacturing, energy, and retail—where a single equipment failure can cost millions—this isn’t just a luxury; it’s a necessity. Imagine a technician in Mumbai solving a problem in a Texas oil rig via AR-guided steps, while AI flags potential issues before they occur. That’s the vision here.


Note: A rising stock price would reflect investor optimism about these moves, but volatility is expected.

Why This Matters for Investors

  1. Market Dominance in Growth Sectors:
    With 400+ clients already on board—including giants in energy, manufacturing, and utilities—HCL is targeting industries that spend $1.2 trillion annually on IT infrastructure. The AR platform isn’t just a product; it’s a recurring revenue engine. Clients pay for subscriptions, support, and upgrades, creating steady cash flows.

  2. Partnerships = Lower Risk, Higher Scalability:
    HCL isn’t going it alone. Its alliances with ServiceNow, AWS, and Microsoft (a recent "Partner of the Year" winner) ensure seamless integration into existing enterprise ecosystems. The newly launched Fluid NOW Centers of Excellence in London, New York, and Noida act as innovation hubs, accelerating adoption globally.

  3. AI-Driven Moats:
    The platform’s Agentic AI, which automates decision-making via "AI Agents," isn’t just cutting-edge—it’s defensible. Competitors like IBM or Accenture would struggle to replicate HCL’s deep ties to ServiceNow’s platform and CareAR’s AR tech.

  4. Talent & Leadership:
    With 3,000+ certified experts and a #1 Forbes ranking as the best employer for new grads, HCL is staffing up to scale. The appointment of new CFO Shiv Walia—a seasoned financial strategist—adds credibility to its ability to manage growth without burning cash.

The Numbers Tell a Story

  • Revenue Growth: HCL hit $13.8 billion in 2025 revenue, up from $11.3B in 2024, driven by cloud and AI solutions. The AR platform alone could contribute $500M+ in annual revenue by 2026.
  • Client Retention: Clients using the platform report a 90% reduction in downtime and 30% lower operational costs, making them sticky customers.
  • Valuation: Analysts at HDFC Securities recently set a target of Rs 1,650 ($20.50 USD) for HCL’s stock, implying 20% upside from current levels.

But Wait—The Risks

  • Execution Speed: Competitors like Cisco or SAP might leapfrog HCL with their own AR tools.
  • Regulatory Hurdles: Data security in AR could attract scrutiny, especially in energy or healthcare sectors.
  • Client Adoption: Some enterprises might resist overhauling their IT systems for a "shiny new toy."

Conclusion: A Buy With a Big Vision

HCL’s AR play isn’t just a tech upgrade—it’s a strategic pivot to become the go-to partner for autonomous IT infrastructure. With $13.8B in revenue, a fortress of partnerships, and a talent machine churning out AI experts, this stock has the mojo to thrive.

The numbers back it up:
- 400+ clients already onboard.
- $500M+ in annual AR-driven revenue by 2026.
- 27 skilled ITSM/ITOM experts per client, ensuring deep integration.

For investors willing to bet on the future of IT, HCL is a BUY. The AR platform isn’t just a gimmick—it’s a $1.2T market’s next operating system. Strap in—the autonomous infrastructure era is here, and HCL is driving.


Note: Outperforming peers would signal investor confidence in HCL's innovation edge.

Final Takeaway: This isn’t just about AR glasses—it’s about owning the future of how businesses keep the lights on. For growth investors, HCL is a no-brainer.