Hcl Co-Operate Strategy

Topics: Shiv Nadar, HCL Technologies, Strategic management Pages: 7 (1415 words) Published: February 17, 2013

HCL Enterprise

Alagu Sundarraj S (11AD02)

Industry Profile:

Company profile:

HCL Enterprise is a garage startup founded in the year 1976. It started as Microcomp and used brand name Televista for selling calculators. Shiv Nadar along with his ex DCM employees Ajai Chowdhry, Arjun Malhotra, Subhash Arora, Yogesh Vaidya, S. Raman, Mahendra Pratap and DS Puri started the enterprising venture.

Group Companies:
HCL Technologies
HCL Info systems
HCL Security
HCL InfiNet Ltd
HCL Online Store

Service Lines:
* Business Services
* Enterprise Application Services
* Custom Application Services
* Engineering & R& D Services
* IT Infrastructure Management
* Services+
* Aerospace and Defense
* Automotive
* Consumer Electronics
* Energy & Utilities
* Financial Services
* Government
* Healthcare
* Hospitality
* Independent Software vendors
* Industrial Manufacturing
* Manufacturing
* Media & Entertainment
* Medical Devices
* Professional Services
* Retail & Consumer
* Semiconductors
* Servers & Storage
* Telecom
* Travel, Transportation & Logistics

Date of Establishment| 1976|
Revenue| US $ 6.2 Billion|
Employees| 90,000|
Headquarters| Noida,Uttarpradesh,India|
Management Details| Chairperson - Shiv Nadar
CEO - Vineet Nayar|
Business Operation| IT ServicesIT Consulting|
Position| Of more than 3,000 technology companies in the Bloomberg database, there are only seven with revenue of more than $2.5 billion, a market capitalization of more than $5 billion, and a compounded annual growth rate greater than 25 per cent during the past five years. HCL Technologies is one of those seven companies across 31 countries.|


Current Vision:

"To be the technology partner of choice for forward looking customers by collaboratively transforming technology into business advantage." Current Mission:
"To be the technology partner of choice for forward looking customers by collaboratively transforming technology into business advantage." Suggested Vision:

Suggested Mission:
Strategy of HCL:
* HCL Tech’s growth in recent times was due to a strategic focus on the deal renewal market. * Typically, that’s a space where the big boys of IT were not interested, as the existing vendor would retain 80 per cent of the business and the rest would be won by smaller players. * Given that new deals are difficult to come by, even the bigger players are going after the deal renewal market. Heightened competition indicates revenue growth will come under pressure. * HCL Tech is strongly positioned in the EAS and IMS verticals. The Enterprise Application Services division (HCL AXON) accounts for over 21.3% of HCLT's revenue and continues to be a key area of growth. * The Giants such as TCS and Infosys, enjoys margins of 28-30 per cent meanwhile HCL has a margin of 22% * HCL’s profit margins are the lowest when compared with TCS, Infosys and it focuses more on long-term outsourcing contracts. * Earlier, the churn was in 5% of deals, now that is in 30% of deals. This year, about $47-billion worth of contracts will come up for renewal from about 249 global customers. Even if HCL manage to play in 30% of the deals, it is a $15-billion opportunity. * Anyways, we can increase our margins anytime we want. We have the levers such as reducing SG&A, increasing utilization, hiring more fresher’s or investing less in BPO.

Vineet Nayar

* Forbes ranked HCL in fourth largest IT company in India and is ranked 48 in the global list of IT services providers. * Strong brand presence
* Large Outsourcing projects
* Low Margins
* Low Margin of 22% compared to other giants such as TCS and Infosys which...
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