Hcl Technologies

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  • Topic: Compound annual growth rate, HCL Technologies, Vineet Nayar
  • Pages : 2 (587 words )
  • Download(s) : 109
  • Published : March 13, 2013
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Competitor Case Study -
HCL Technologies

Submitted by:
Farah Aijaz
PGP20121663

SUMMARY

HCL has grown faster than Indian IT Industry during the last decade.While HCL growth was lagging behind Indian IT Industry growth during the first half of the decade, HCL came back strongly during the second half of the decade. During the first half of the decade, HCL revenues grew at a 5-year CAGR of 30% from $207mn in FY2000 to $764mn in FY2005. While HCL Technologies (HCL) was rising at 30% compound annual growth rate (CAGR) from 2000 to 2005; its competitors were performing even better. Between 2005 and 2010, HCL’s new CEO, Vineet Nayar, started on with an all-out effort to change the systems integrator into a high-performing organization. A major Indian IT services company, initiated a radical new strategy, “Employee First, Customer Second” (EFCS) in 2005. The ultimate strategic goals for EFCS were to build a unique employee organization, drive an inverted organizational structure, construct transparency and accountability within the organization, and inspire a value-driven culture. Nayar’s efforts started with a simple idea: By putting employees first. HCL could create a culture that attracted and sustained creative employees. HCL altered its business by practicing radical transparency and increasing the autonomy/power of individual development teams. HCL also changed its traditional organizational pyramid on its head by building shared-service organizations such as tech support and management accountable to forefront developers. Developers are responding with innovative ideas and creating a self-sustaining “can-do” culture. . Also, Vineet launched “U&I,” a vehicle for communication between himself and employees. Few objectives were to create an environment of trust, transparency, and management accountability through open communication. They also started with a 360 degree feedback which existed for development and not for evaluation purpose. This helped...
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