HCL Tech­nolo­gies

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HCL Tech­nolo­gies wit­nessed 14% growth in FY 2017 and con­tin­ued to per­form steadily in dou­ble dig­its in ru­pee terms. Like the en­tire ser­vices sec­tor, the com­pany is also fac­ing chal­lenges from dig­i­tal­iza­tion and au­to­ma­tion. Con­tribut­ing to its woes has been the poli­cies of the Don­ald Trump ad­min­is­tra­tion which tight­ened the noose on out­sourc­ing and barred for­eign work­ers for en­try level jobs in the IT in­dus­try. The de­ci­sion of the Trump ad­min­is­tra­tion is ex­pected to af­fect the top line in the com­ing year as the lo­cals come at a hefty price for In­dian com­pa­nies in the US.

HCL Tech­nolo­gies wit­nessed a few key changes in its man­age­ment in FY 17. One among them has been the exit of Anant Gupta from CEO’s post. Gupta was re­placed by C Vi­jayaku­mar, an ex­ist­ing HCL veteran who’ve been at the helm of af­fairs at dif­fer­ent lev­els in the com­pany. Gupta moved out to try his luck in his own ven­ture that will fo­cus on startup in­no­va­tion.

C Vi­jayku­mar is known for his grip on the US mar­ket and strength­en­ing re­la­tions with clients. Un­der his lead­er­ship, HCL has been able to meet the fore­casts due to in­creased deals even though the deal sizes have been low. The com­pany has wit­nessed greater trac­tion in dig­i­tal tech­nolo­gies such as cloud, IoT and IP-based of­fer­ings.

HCL also saw sig­nif­i­cant op­por­tu­nity in its life­sciences and health­care ver­ti­cals. How­ever, health­care in the US is right now a sticky is­sue with Pres­i­dent Don­ald Trump’s ad­min­is­tra­tion mulling a re­peal of the Obama ad­min­is­tra­tion’s health care law called Oba­macare. It might af­fect the com­pany’s busi­ness. A num­ber of projects which were stalled in the past also picked up pace in this year and helped the com­pany move for­ward.

In the Q4 earn­ings call the com­pany’s CEO said: “From an in­dus­try sec­tor per­spec­tive, FY’17 saw four of our key ver­ti­cals de­liver a dou­bledigit growth — Pub­lic Ser­vices grew by 31.3%; Re­tail CPG grew by 21.4%; Life Sciences and Health­care 11.1% and Man­u­fac­tur­ing by 17%. The re­main­ing two ver­ti­cals also recorded good growth. Tele­com, Me­dia and En­ter­tain­ment grew 5.8% fol­lowed by Fi­nan­cial Ser­vices at 4.9%. In terms of ge­ogra­phies, Amer­ica recorded 15% YoY growth, Europe and rest of the world recorded 18% YoY growth.

In terms of ser­vice lines, In­fra­struc­ture grew by whop­ping 27.4%, Engi­neer­ing Ser­vices grew by 11.7% and Ap­pli­ca­tions Ser­vices grew by close to 6%. Over the year, HCL also suc­cess­fully es­tab­lished our client­part­ner pro­gram to de­liver “One HCL to Top 150 Client Part­ner Ac­counts” This ini­tia­tive is suc­cess­ful and HCL is see­ing good trac­tion in pipe­lines as well as book­ings in the cross-sell op­por­tu­ni­ties. This year also saw the com­pany emerge as the fastest grow­ing IT Ser­vices brand in the world as tes­ti­fied by Brand Fi­nance Sur­vey. The com­pany’s brand value in­creased by 38% over last year.

—C VI­JAYAKU­MAR CEO

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