Transitioning through turbulent times

A perfect storm is brewing ! Turbulent times • Great financial turbulence and uncertainty • Extremes of volatility • A totally novel situation in known memory ‘Turbulence’ – a word we had heard only in flights… ….TILL NOW!

What caused the meltdown? Rising Easier Real Money Estate prices Rising Declining Non Share Domestic prices Reserves Declining Rising Commodity Commodity Prices Prices Declining Rising Non Domestic Share Prices Reserves Declining Real Tighter Estate Prices Money

Factfile – Indian IT Industry ( as on May’08) ü IT Exports 2007-08: $40 Billion USD ü Jobs: 2 million direct + 7 million indirect ü 5.4% of GDP ü 33% of total country exports ü To reach $80 billion usd by 2010 ü The US buys 67% of India IT services exports ü Direct employment grew from 280K professionals in 1999-2000 to 2 million in the 07-08 period Source: The Hindu Business line, with data from Mc Kinsey & NASSCOM May 13 2008

Understanding the Economic Cycle Strong Recovery Boom General Slow Recovery Down Hesitant uneven Slump recovery Recovery Corporate Begins Failures Gloom

Stages of IT outsourcing Gartner offshore maturity model Utility Enhancement Transformation Rates Improves Process Customer Focus High level market & Identification of most variable Managing Business Change Pricing review alternatives Technical metrics Balanced Metrics Value Creating Technical Competencies Business Competencies Behavioral Competencies Cost Effectiveness Business Value Add effectiveness High Risk Levels Low Low Investment High &Return Levels

The challenge Managing growth, innovation, talent, engagement and performance when the pressure is to do more with less!

So what do you do? The war for talent doesn’t go away in a downturn, it intensifies

How do you stop your top talent from walking out the door when times get tough? By engaging with your workforce and providing clarity of direction.

Downturn spells opportunity Where good times disguise all manner of ills, bad times ask for the courage to deal with poor performance. Non-performance is a cost

Don’t be an Ostrich! Adopting a head in the sand approach is Futile! The environment has changed , so should your organization…

Sticking your head up…How? 1 Learn from past mistakes Companies have learnt tough lessons around talent issues from past downturns and are ready to learn from their mistakes 2 New trends require new responses Trends like globalization, off-shoring and outsourcing require different responses to the talent implications of this recession 3 Creative Solutions needed Economic stagnation is the ultimate “stress” test for human capital strategy – and staying the course requires creative solutions

Prioritizing Learning and Development Percentage of organizations that rank the following as the top two challenges addressed by Learning and Development

Prioritizing Learning and Development Best in class strategies for learning and development

Nurturing Talent to tide over difficult times Converting threat into opportunity Put your employees FIRST! After all, they are the only ‘assets’ you can rely on to sail through…

Take your employees along Build FAITH and TRUST

Standard Cycle of Transformation 5 Engaged Great place employees to work 6 4 Satisfied customers New Initiatives 1 3 Competitive Operating Share Gain Efficiencies 2 23

HCL’s Cycle of Transformation Employee First 6 Engaged Great place employees to work 1 5 Satisfied customers New Initiatives 2 4 Competitive Operating Share Gain Efficiencies 3 24

Employee First is… • Accepting imperfections as catalysts for transformation • Seeding trust by stretching the envelope of transparency • Reversing accountability by bringing the bottom to the top • Decentralizing decision making • Collaborating to create value 25

One of India's leading global IT Services companies, providing software-led IT solutions, remote infrastructure management services and BPO. In a world full of customers, I see my employees first.... 26

The Employee First mantra @ HCL Employee First… Time to Think Tools to Use and Space to Grow Take care of the Employee… …Who takes care of the customer… ….Who in turn takes care of the Profits…. 27

Why Employee First In a knowledge intensive industry, value gets created in the interface between the customer and the employee. Employee First Enables, Engages and Empowers employees to maximize this value by creating the WOW in that interface 28

Collaborate Learn from the kids! Create Grow Destroy the office of the CEO Own Invert Inverted Pyramid Involve Communicate Trust through Transparency Partner Open Mirror ,Mirror… Initiate 29

Media Testimonials The Employee Is Always Right At India's HCL Technologies, workers get to grade the boss, and everybody can see the ratings CEO's bold experiment: Management by democracy India is the world's largest democracy, so it seems fitting that the New Delhi-based information technology services giant HCL Technologies is attempting what may be the most ambitious effort yet at installing a workplace democracy. That may sound impossible, but so did running nations as democracies in past centuries. 30

Office is campus Business is Curriculum Leaders are faculty Technology is the enabler Customer is the drive Employees are THE assets

What if we Invest in our employees, and they leave?

What if we don’t invest in our employees and, they stay ?

Employee First Impact Attrition Rates down for both Core Software and Infra 35

Employee First Impact Increase in Utilization rates from 70% to 72.7% in FY’08 36

Remember!!! “Prosperity is a great teacher; adversity a greater.” - William Hazlitt (English writer, 1778 – 1830)

Transitioning through turbulent times

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