Sustaining Exponential Growth in Infrastructure ServicesSustaining Exponential Growth in Infrastructure Services

R.Srikrishna, Global Head – Infrastructure Business

Agenda

HCL Infrastructure Service Division- Continued Story of Global Growth

Strategy for sustaining growthStrategy for sustaining growth

Investing for sustainable competitive differentiation

Continued Thought Leadership

Key Differentiators

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Infrastructure Services Accelerating growth along all dimensions

15,000People17 Delivery Centers

Last 3 Years CAGR

40.0%

50.0%

60.0%

42.4%

54.7%

46.0%

34.4%

2010

0 0%

10.0%

20.0%

30.0%

0.0%Reveune EBIT People Delivery Centre

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3

Infrastructure Services : 60.7 % FY 10 YoY Growth | 11.5 % 4 Quarter CQGR

Infra Global Delivery Centers added- 12 months

Growth balanced around the worldPropelled by mix of new and existing customers

EFH – Large Contract in Utility industry won in rebid from an

JLT Large DC Transformation engagement in UK

Incumbent

DC outsourcing for a large wine company

engagement in UK

Large Telecom VAS Provider in UKUPAPDRP – Complex Smart Grid Implementation

SGX – S’pore Stock Exchange

United States

Europe & UK

MiddleEast India

Gl b l A ti M j Large Publisher EastGlobal Aeronautics Major

Global F 100 distribution company

Al MaajdouieContinued Success for SI in ME

SBI ECGC– Large SI d l f

Large Publisher in Netherlands

Largestindustrialhouse in France S th

Singapore

AustraliaMajor Fashion RetailerSI deal for implementation and operations of Insurance applications

Major AUS Retailer

Telecom Major in RSA

France SouthAfrica

Brazil

Large Brazilian Bankg

Large Global White Goods Company, LATAM Operations

Helsinki

Mature “global service with a local touch”– Centralised Delivery + In-Country “G{local} Service Management + Right Touch

EMEA RegionA&O Helsinki

SwedishFinnish

A&OPhoenixHammerschbachAsystelInfocare

North America RegionNorth America RegionUnisysCompuComPomeroyDecision One Northern Ireland

PolandChina

Finland

Raleigh, NCEnglishSpanish

ShanghaiMandarinCantoneseKorean

APAC Region

Raleigh, NC

pPortuguese

Sao PaoloS i h

Krakow, PolandFrenchGermanIt li

India English

APAC RegionJardine One SolutionsNovotsNEC FieldingRaffles

BrazilMalaysia and Singapore

SpanishPortuguese

ItalianPortugueseSpanishPolishRussianDutchRomanian

EnglishMalaysia and Singapore

7 Asian Languages

South America RegionUnisysCompuCom

RomanianCzech

Physically dispersed but virtually aligned delivery units – same tools, same processes, integrated managementOver 1.6 Million users supported , 11 Million Contacts, 24 languages; Certified Partner Program for DC In-Region, Hand and Feet on Premise or Shared

Sustaining Growth to Protect Existing revenue in Existing Customers (EE)

CSStrategy Impact on HCL Impact on Customer

Horizontalization of Skills Greater specialization, better career options for employees

Productized & Standardized solutions hence providing greater value

Increased Focus on CSAT Through:

Gold Standard- A Standard to define future state of an enterprise IT by driving true IT Transformation. 3 Dimensional assessment to measure

Thought Leadership in the IndustryEnables customer stickiness &

“Partner in Transformation" in Predictive IT roadmapAttain Maturity & Innovation in IT

Dimensional assessment to measure maturity of enterprise around Operations, Technology & Governance

become significant to customer Moved from Beta to production during the year

organizationDemonstrate greater business value of IT

Sell the value of MTaaS TM Gaining Service Advantage through Industrialization &

Manage Public and Private Clouds seamlessly from onethrough Industrialization &

cloud based services Converts People Centric to Platform centric delivery; hence reduces linearity of revenue

Clouds seamlessly from one interfaceRun IT like a Business Convert IT management cost from Capex to Opex

growth with people growth Helps HCL to deliver consistency in service Delivery to its customers New Features – Cloud

Best of Breed ToolsLow Time to Value Low investmentsMulti-dimensional visibility into IT

Received Golden Peacock Innovation Award for MTaaS TM

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New Features Cloud Management Operations

Sustaining Growth by increasing customer base through New business in Existing customers (EN)

Strategy Impact on HCL Impact on Customer

Spice Programme - 5X50X100 proposition

Gain up-sell and cross-sell revenue; new business in existing

Gain Visibility of additional cost optimization methodsproposition revenue; new business in existing

customers

Positions HCL as a Pro-active partner

Deepen Account management

optimization methods

Transformation & Innovation opportunities

p gand relationship quotient of sales with customers

Customer Advisory Council Enhance customer stickiness

Positions HCL as Pro-active &

Platform for customer to give feedback and help HCL develop new os t o s C as o act e &

thought leader

New Program: Customers helping HCL define Verticalization of

processes/frameworks to increase Csat

Infrastructure

Increase Breadth & Depth in Service Offerings : Enterprise Class Dev/QA Cloud, SAP as a service,

Introduce new revenue streams Helps customer to deepen relationships with HCL as a single provider accountable for all

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Public/Private Cloud Integration, Focus on adjacent markets through verticalization.

technology management.

Sustaining Growth- Continued focus on NN

Strategy Impact on HCL Impact on Customer

Focus on Large contracts : Increased win ratio in >100 mn USD deals & >200 mn USD deals

Increase profitability , maturing capability on complex multi-country deals

Ability to handle complex multi-vendor environment

>200 mn USD deals deals

New Geo Expansion Exponential growth and new revenue streams ; increased focus on Brazil, South Africa, PIIGS

Bring new industry sourcing models to new customers

Focus on Renewal Contracts Opportunity to positioning as the best vendor vis-a-vis incumbent

Bring complete change in relationship basis – trust, transparency and flexibility

Focussed Advisor’s Programme Improved pipeline of large t iti

Better education on HCL capabilitiesopportunities

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Top 5 Strategies for Infra Services

1. Accelerate penetration and Localization in Emerging Geos

2. Focus in Sales on Rebid Market / Competitive Renewals

• 40% of our customers are from the rebid market, we have a 100% success rate in ,

transition.

3. Verticalization of Infrastructure Services

4. Participate in “Offering Cloud Services” and in helping customers to manage a federated p g p g g

Cloud environment

• Not a question of “If” but what will be migrating to cloud and when and how?

• 4 Waves – Wave 1 – Infra Applications, Wave 2 - Non Production, Wave 3 -

Horizontalised Apps, Wave 4 - Custom / Vertical Apps

• Offerings Focus: Performance Assurances, Enterprise Class

5. Automation and Increased Standardization

• IP Creation leading to Increased standardization and Automation for customers

• HCL Gold Standard

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Continued Thought Leadership: “Verticalization” of Infra Services

What is VerticalizationA majority of Infra services delivery will become commodity, rapidlyComputing from the Cloud, Right shore labor, even automation, tools and processes.

Th diff ti ti /i t t ill b i t h l i d i th tThe differentiation/investment will be in technologies devices that are likely to be in the interface between our customers and their customers. Examples

S t M tSmart MetersHandheld devices, mobilityEMR systems Smart Kiosks

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Continued Thought Leadership: “Verticalization” of Infra Services

The lines will get blurred betweenIT and non-IT technologiesA li i d I fApplication and Infrastructure

HCL StrategyTo develop integrated solution stacks that maybe pure Infrastructure, or Infra+ Apps thatTo develop integrated solution stacks that maybe pure Infrastructure, or Infra Apps that will serve the unique needs of the industry vertical/customer – with a combination of commodity services and unique solutions.Initial focus on Retail, MPE, BFSI, Manufacturing, Healthcare and E&U.

Impact on HCLIncreased access to adjacent markets and new revenue streams e.g – SCADA management, Studio technology management (movie/TV studios), Store management, Health systems managementImproved margins due to complexity of solution stacks

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Key Differentiators

Recognized Thought Leadership – Launched services 2 years ahead of themarket: Datacenter Partnerships, MTaaS TM, Gold Standard, Cloud Strategy

Trust Transparency & Flexibility: Re-defining customer relationshipbased on these fundamental tenets

Fully Integrated Application + Infrastructure Solutions

Employee First leading higher customer Csat and value creation

Ability to impact all facets of customer IT budget even those which may notdirectly impact HCL revenue

Giving customers most Optimal rightshore leverage through innovation in

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g p g g gpeople, process, tools and technology