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  1. 1. An Introduction to the IT Industry: With HCL as an example Anand Narayanan Corporate Marketing
  2. 2. The Information Technology Landscape: A worldview 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.Source: HCL Strategic Intelligence Wing, Bloomberg database as on 1 st July 2011 2
  4. 4. A Quick Snapshot $6 B I L L I O N 31 CO UNTRIE S 90000 P E O P L E 4
  5. 5. Strong belief in three core valuesTo know more about HCL, look for “Employees First” on YouTube 5
  6. 6. The Business of an IT Services Company
  7. 7. Trends in the Technology sector – IT ServicesLevel Playing Field and IOP relevance…. The Indian Top-5 grew 5x faster than the Global Top-5 over the last 2 years 35% 27% 25% 20% 15% 9% 7% 5% 2% 1% CTS HCL TCS Infosys Wipro Accenture Capgemini IBM HP CSC ~54% growth in IOP Market Share Share of IOP in Incremental Revenues ($24 BN) 13% 17% 45% 87% 83% 55% TTMSep09 TTMSep11 Global Top 5 Indian Top 5 Global Top 5 Indian Top 5 7
  8. 8. Growth of Indian IT (vs HCL‟s Growth) 33.5% 32.6% 30.5% 28.5% 27.6% 25.8% 24.7% 26.5% YoY Growth 21.0% 21.4% 21.5% 26.4% 25.6% 24.8% 18.2% 18.3% 19.6% 19.5% 14.9% 15.5% 6.0% -2.0% -3.0% -3.8% JFM09 AMJ09 JAS09 OND09 JFM10 AMJ10 JAS10 OND10 JFM11 AMJ11 JAS11 OND11 HCL Average (Top 3) 8
  9. 9. How does HCL go to market: GTM structure CY11 vs CY10 (YoY Growth) Geography 17% US 19.8% 27% 56% Europe 29.6% ROW 45.9% Enterprise Application Services 20.4% 5% 21%Service Lines 24% Engineering and R&D Services 22.0% 18% 32% Custom Application Services 32.6% Infrastructure Services 34.8% BPO Services -2.5% Financial Services 29.4% Verticals 7% 6% 26% Manufacturing 32.7% 8% 7% Telecom 2.0% 8% 9% 28% Retail & CPG 27.2% MPE 17.1% Healthcare 24.3% E, U & Public Sector 35.4% Others 29.9% 9
  10. 10. What to look for: Beyond simple numbers HCL Client Concentration HCL Revenue per Employee Increasing significance with clients Client recognize value employees createOver last 3 years, Number of $10mn+ and $20mn+ have more HCL Revenue per Employee is among the highest in the than doubled. $50mn+ clients have tripled. Indian IT. 10
  11. 11. Brand Matters: HCL is positioned as „the CIO‟s best friend‟Clients From clientincreasingly satisfaction tofocus on the client happiness —business HCL continues tobenefits from improve clienttheir vendor satisfaction. This alsorelationships, r encapsulates greaterather than intimacy with itsefforts-based customers through itsprocurement customer advisory council (CAC) that continues to lay out the roadmap for the overall transformation processHCL will not strive to compete in businessconsultancy services. It will focus on making theCIO successful in driving that technology-ledbusiness transformation by being its mosttrusted technology partner* Source: Gartner Report published 19th Jan 2011 [ID Number: G00209906] 11
  12. 12. THE ROAD AHEAD
  13. 13. 5 Mega Trends that you need to be aware of Clients looking at output not Input Transformation is in the interface1  From procurement-led to 2 of multiple technologies business benefit-led buy Technology will lead strategy to  From best efforts to Integrated increase business competitiveness solution buy (Digital, Pro-activity, High volume, new  From relationships to value consumer etc.) Complexity is increasing From global delivery to global business3  Application skill landscape will 4  Social responsiveness change  Emerging markets (Cloud, BI, SOA, Lean, Virtualizatio  Protectionism n, Enterprise solutions)  Pyramid models will become obsolete Innovation moves to the Edge5  Mobile Phones vs. PCs  Social networking technologies dominating 13
  14. 14. 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. 14
  15. 15. Brief introduction of MAD LTD MAD LTD is a launch pad from where Creativity and Innovation are critical assets for participants can make a difference to the any IT organization. society and bring their idea to realization with support from HCL. 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 The campaign runs in and out of HCL pooling innovative outside the organization through its MAD LTD ideas, scrutinizing for their (Make a Difference, Lead the Difference) feasibility and commercialization. program. The program aims at the youth predominantly students in Further details can be found on engineering and management colleges. www.madltd.com or the MAD LTD FB Page. MAD, within HCL, has given birth to innovative ideas and solutions. e.g. Customer Onboarding Solution offered by HCL. 15
  16. 16. Questions? Don‟t forget to watch theEmployees First Effect on YouTube 16