Hcl History and Overview

Topics: Shiv Nadar, HCL Technologies, Vineet Nayar Pages: 5 (1548 words) Published: March 17, 2013
Company was founded by SHIV NADAR with fellow engineers having wonderful RnD capabilities.. in 1976, shortly after Indian govt. discouraged multinational corporations from doing business in India. Like other firms it got the approval from govt. to enter the market in hardware business. It was the first in Indian market offering technological trends like DOS & UNIX. Moreover they came up with fourth generation programming language before oracle. Shiv hired talents from top Indian B schools offering sum of 2000 which was more than what city bank was offering that time. Vineet a 23 old engineer & an MBA from XLRI Jamshedpur joined the co. in 1985 as mgmt trainee in the marketing function dept. Hard times at HCL

Around 1992 industry was growing at a fabulous rate and vineet had a vision of becoming an entrepreneur. And thus decided to leave the co. shiv on hearing this offered him a venture within HCL. Since govt. was also accepting the bids for new electronic stock exchange. Soon a sister co was created called Comnet HCl by hiring few more employees. An IT infrastructure and networking business wholly owned by HCL. It worked on satellite tech for about two years to modernize the exchange. By the end of 1994 comnet beat global majors and was working smoothly. However HCL was lagging behind because of three reasons & LATER VINEET FACES THE SAME:- 1. The Indian govt began to deregulate the policy and MNC like IBM returned. 2. Customers were demanding more IT enabled services since the global IT leaders were transforming themselves into service delivery business. 3. Companies were offshoring recoding and manufacturing and application development at lower costs. Nadir policy was to avoid the price war so he did not participated. Bt this proves costly for HCL by 2000. Later when he concluded that they should move in the strategic service direction & he ended the relationship with HP in 1997. He changed the management and reorganized HCL into 2 companies: the Indian-facing HCL info-systems, a company focused on hardware and software integration and HCL technologies. A global IT service company that would provide software-led IT solutions, remote solutions and BPO. In nadar led HCL technologies by largest IPO of a domestic IT company at that time. But still HCL attrition rate was 30% much higher than the industry average.

Searching for a new leader.
Vineet was the obvious choice because of his energy and capacity and success at comnet since by that time comnet has gone global in 11 countries. People called themselves as the force of one. And was clear that he could bring the HCL into new era. First he refused the offer bt later he accepted o one condition that he would make drastic changes in HCL. Vineet realized the challenges in the sales and delivery groups and realized that company needed more than a bandage, company lacked unity inspite of having technically skilled & creative talents. He explained that in order to survive it need to change the way it approached to customers Steps to reorganize the HCL BY VINEET:-

1. Vineet started that concept of mirror, mirror- it was a metaphorical mirror which revealed that HCl had been preety for past 25 years but not in last 5 years..was trying to get their inherent hunger and desire to win. He was holding the mirror to entire company to transform it. 2. He set up a communications and marketing team of 30 young sparks some of them were from comnet. He also bought over heads of systems, sales and talent development. 3. Company had intrapreneurship people working in silos but they needed integration and a goal 4. The decentralization created dilemma for vineet as he founded himself with 85 direct reports. He informed that he’ll be reducing them to 12 shortly. Many senior people left the company on hearing that vineet would centralize the company. 5. Vineet located the team of marketing on his floor of his HCL...
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