Hexaware Pours £25M into UK AI Research & Quantum R&D, 1,200 New Jobs

Hexaware’s £25 million commitment to onshore AI and quantum R&D marks a significant moment for the UK’s machine learning community. By planting research hubs in Manchester and Leeds—cities with strong academic linkages—the firm is moving beyond typical IT services delivery into genuine co-creation of AI solutions with government and enterprise. The promise to work with ‘unique published datasets’ and to incubate young talent suggests a model where UK researchers can directly shape citizen-facing AI systems, from healthcare to public administration.

On June 18, 2026, Hexaware Technologies (NSE: HEXT) announced a strategic £25 million investment to significantly expand its UK footprint, a move that will create approximately 1,200 high-skilled jobs across Manchester, Leeds, and Birmingham over the next three to five years. The announcement follows the UK Government’s rollout of international AI commitments at the G7 Summit on June 16, 2026, where Hexaware’s plan was highlighted as part of a broader national agenda for artificial intelligence and clean energy. The Mumbai-headquartered IT services firm, which has operated in the UK for over three decades, is doubling down on its onshore presence by establishing dedicated R&D centres in Manchester and Leeds while scaling its existing delivery centre in Birmingham. The investment targets emerging technology domains—AI, digital services, and quantum computing—with a clear mandate to develop local talent, accelerate applied research, and modernize citizen and public services.

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The announcement follows the UK Government’s rollout of international AI commitments at the G7 Summit on June 16, 2026, where Hexaware’s plan was highlighted as part of a broader national agenda for artificial intelligence and clean energy.

This expansion arrives at a pivotal moment for the UK’s technology sector. The government is actively courting foreign direct investment to position the country as a global AI hub, leveraging recent regulatory moves like the AI Safety Summit and pro-innovation frameworks. Hexaware’s commitment mirrors a wider trend among Indian IT majors (TCS, Infosys, Wipro) who have long used the UK as a nearshore base for European clients, but with a fresh emphasis on sovereign AI capabilities. By embedding R&D talent locally, Hexaware can co-create solutions with its UK clients—many of whom are in the fast-moving financial services, healthcare, and public sectors—rather than delivering projects from offshore centres. Param Iyer, EVP and Head of UK & Europe, crystallised this sentiment: “Our UK clients are moving fast on AI, and having research and delivery talent on the ground here means we can build with them rather than for them.”

The job creation figures are substantial for the regional economies. Manchester and Leeds, already vibrant tech corridors outside London, will gain R&D hubs that promise to attract and incubate early-career talent, with CEO R. Srikrishna emphasising a focus on “young talent” and “unique published datasets.” These hubs will not only service Hexaware’s existing client base but also fuel innovation for public sector digital transformation, aligning with the government’s ambition to use AI for citizen services. The £25 million injection—while modest compared to hyperscaler investments—signals a high-quality, high-value job creation path in advanced technologies, exactly the kind the UK’s industrial strategy seeks to incentivise.