An Introduction to the IT Industry:

With HCL as an example

Anand Narayanan

Corporate Marketing

The Information Technology Landscape: A worldview

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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.

UNDERSTANDING HCL

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A Quick Snapshot

$6

31

90000

B I L L I O N

COUNTRIES

P E O P L E

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Strong belief in three core values

To know more about HCL, look for “Employees First” on YouTube

The Business of an IT Services Company

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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….

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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

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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

THE ROAD AHEAD

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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.

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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.

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Questions?

Don‟t forget to watch the

Employees First Effect on YouTube