The Information Technology Landscape: A worldview
2
Source: HCL Strategic Intelligence Wing, Bloomberg database as on 1st July 2011
There are 3150 companies in the Bloomberg
database belonging to IT Sector
(Hardware, Software, and Services).
Of the 3150, 345 (11% of total) recorded 5-year
Revenue CAGR greater than 25%.
Of the 345, only 13 (0.4% of total) had revenues
greater than $2.5 Billion.
Of the 13, only 8 (0.3% of total) had market cap
greater than $5 Billion.
7
The Indian Top-5 grew 5x faster than the Global Top-5 over the last 2 years
~54% growth in IOP Market Share Share of IOP in Incremental
Revenues ($24 BN)
35%
27%25%
20%
15%
9%7%
5%2% 1%
CTS HCL TCS Infosys Wipro Accenture Capgemini IBM HP CSC
87% 83%
13% 17%
TTM'Sep09 TTM'Sep11
Global Top 5 Indian Top 5
55%
45%
Global Top 5 Indian Top 5
Trends in the Technology sector – IT Services Level Playing Field and IOP relevance….
8
Growth of Indian IT (vs HCL‟s Growth)
18.2%
21.0%
25.8%
28.5%
21.4% 21.5%
27.6%
32.6%33.5%
30.5%
24.7%
18.3%
-2.0%-3.0% -3.8%
6.0%
14.9%
19.6%
26.5% 26.4% 25.6% 24.8%
19.5%
15.5%
JFM'09 AMJ'09 JAS'09 OND'09 JFM'10 AMJ'10 JAS'10 OND'10 JFM'11 AMJ'11 JAS'11 OND'11
HCL Average (Top 3)
Yo
YG
row
th
How does HCL go to market: GTM structure
56%27%
17% US
Europe
ROW
21%
18%
32%
24%5%
Enterprise Application Services
Engineering and R&D Services
Custom Application Services
Infrastructure Services
BPO Services
Service Lines
Geography
Verticals 26%
28%9%8%
7%8%
7% 6%
Financial Services
Manufacturing
Telecom
Retail & CPG
MPE
Healthcare
E, U & Public Sector
Others
CY11 vs CY10
(YoY Growth)
19.8%
29.6%
45.9%
20.4%
22.0%
32.6%
34.8%
-2.5%
29.4%
32.7%
2.0%
27.2%
17.1%
24.3%
35.4%
29.9%9
What to look for: Beyond simple numbers
10
Client recognize value employees createHCL Revenue per Employee is among the highest in the
Indian IT.
HCL Client Concentration HCL Revenue per Employee
Increasing significance with clientsOver last 3 years, Number of $10mn+ and $20mn+ have more
than doubled. $50mn+ clients have tripled.
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Brand Matters: HCL is positioned as „the CIO‟s best friend‟
* Source: Gartner Report published 19th Jan 2011 [ID Number: G00209906]
Clients
increasingly
focus on the
business benefits from
their vendor
relationships, r
ather than
efforts-based
procurement
HCL will not strive to compete in business
consultancy services. It will focus on making the
CIO successful in driving that technology-led
business transformation by being its most
trusted technology partner
From client satisfaction to client happiness —
HCL continues to
improve client
satisfaction. This also
encapsulates greater
intimacy with its
customers through its
customer advisory
council (CAC) that
continues to lay out the
roadmap for the overall
transformation process
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5 Mega Trends that you need to be aware of
1Clients looking at output not Input
From procurement-led to
business benefit-led buy
From best efforts to Integrated
solution buy
From relationships to value
2Transformation is in the interface
of multiple technologies
Technology will lead strategy to
increase business competitiveness
(Digital, Pro-activity, High volume, new
consumer etc.)
3Complexity is increasing
Application skill landscape will
change
(Cloud, BI, SOA, Lean, Virtualizatio
n, Enterprise solutions)
Pyramid models will become
obsolete
4From global delivery to global business
Social responsiveness
Emerging markets
Protectionism
5Innovation moves to the Edge
Mobile Phones vs. PCs
Social networking
technologies dominating
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So what does this mean to you? A few tips
Understand existing and emerging technologies
Probably the most fundamental competency that all IT professionals need is a deep and broad knowledge base
in their bread-and-butter technical skill sets.
If you go for certifications, remember your goal is not simply to put more letters after your name but to maximize
the value of the educational experience.
Communicating and listening; gathering information
Be mediocre at everything else but be perfect at this: communication. It’s one of the key competencies everyone
must have, and it’s especially important for IT pros.
Creativity and Innovation
There is always acceptance of productive breakthrough ideas and IT Cos constantly brainstorm ideas by not only
involving the top management but also by pooling in ideas from all the employees.
Thinking strategically
It’s an increasingly competitive world, and today’s IT professionals must prove, every day, that they can add
tactical and strategic value and that they belong and are welcome at any meeting taking place anywhere in their
organizations.
Being adaptable
Gone forever are the days when being a technology professional meant having expertise in a particular
development environment or being able to build and support a network. But to become a truly well rounded IT
professional, you need to work constantly on expanding and honing your skills.
15
Brief introduction of MAD LTD
Creativity and Innovation are critical assets for
any IT organization.
New ideas are the backbone for a sustainable
business in IT industry.
E.g. EFCS was a breakthrough innovative idea
which transformed HCL.
HCL takes initiatives to pool in ideas in and
outside the organization through its MAD LTD
(Make a Difference, Lead the Difference)
program.
Further details can be found on
www.madltd.com or the MAD LTD FB Page.
MAD LTD is a launch pad from where
participants can make a difference to the
society and bring their idea to realization
with support from HCL.
The campaign runs in and out of
HCL pooling innovative
ideas, scrutinizing for their
feasibility and commercialization.
The program aims at the youth
predominantly students in
engineering and management
colleges.
MAD, within HCL, has given birth to
innovative ideas and solutions.
e.g. Customer Onboarding Solution
offered by HCL.