2. Hindustan Computers Limited (HCL) is a leading global technology and IT enterprise that was
founded in 1976 by Shiv Nadar. The company developed the first indigenous microcomputer
in 1978 and a networking operating system in 1983. The company was a huge success as it
contributed to the growth of the Indian IT industry. HCL is founded as one of the original
tech startups as eight entrepreneurs break the status quo, believing in the potential of
computing to transform the decades that come.
HCL Tech - Introduction
3. INCEPTION
●Founded -1976 (Initially floated as Microcomp Limited)
●Industry - Information Technology (IT) services and consulting
●Founder - Shiv Nadar
●Initial Funding (1976) - 1,87,000/-
●HCL Net Worth (2023) - ₹317,892.30 crores (US$40.8 billion)
Shiv Nadar and his team (which also included Arjun Malhotra, Ajai Chowdhry, D.S. Puri,
Yogesh Vaidya and Subhash Arora) started selling teledigital calculators to gather capital for
their main product. On 11 August 1976, the company was renamed Hindustan Computers
Limited (HCL). The company originally was focused on hardware but, via HCL
Technologies, software and services became a main focus.
4. Shiv Nadar is an Indian industrialist tycoon and philanthropist who is a former chairman and
co-founder of the global IT service company HCL Technologies Limited.
Life and education Shiv Nadar was born on July 14, 1945, in Tamil Nadu to
Sivasubramaniya Nadar and Vamasundari Devi. He received a pre-university degree from
American College, Madurai and completed his graduation in Electrical and Electronics
Engineering from PSG College of Technology. He is married to Kiran Shiv Nadar who is an
Indian art collector and philanthropist.
Career In 1967, he started his career as an engineer at Walchand Group's Cooper Engineering
(COEP) in Pune. After a few years, he left his job to take up a business-oriented career in
partnership with Ajai Chowdhry and other colleagues to establish an enterprise - Microcomp
under the brand name 'Televista'. Later, they together founded HCL Tech in 1976 to
manufacture microprocessors and calculators.
Nadar founded the SSN College of Engineering in Chennai in 1996 in the name of his father
Sri Sivasubramaniya Nadar.
Shiv Nadar - Introduction
5. SELLING COMPUTERIZATION
HCL did not just sell computers, they sold computerization. This means that they not only sold the hardware, but
also the software, training, and support that businesses needed to use the computers effectively. This was a key
difference between HCL and other computer companies at the time.
HCL's focus on computerization helped them to grow their business in a number of ways. First, it allowed them
to sell to a wider range of customers. Not all businesses needed to buy their own computers, but they could still
benefit from the use of computers. HCL's computerization services allowed these businesses to access the
benefits of computers without having to invest in the hardware.
Here are some specific examples of how HCL sold computerization:
∙ They offered training courses on how to use computers and software.
∙ They provided technical support to help businesses troubleshoot problems with their computers.
∙ They worked with businesses to develop custom software solutions.
∙ They offered consulting services to help businesses plan and implement their computerization strategies.
By offering these services, HCL was able to help businesses of all sizes get the most out of their computers. This
helped them to grow their business and improve their productivity.
6. OPENING NIIT
HCL's strategy behind opening NIIT was to create a pool of skilled IT professionals in India. At the time, there
was a growing demand for IT professionals in India, but there was a shortage of qualified people. NIIT helped
to address this shortage by providing training to students in computer science and information technology.
Here are some of the specific benefits that HCL gained from opening NIIT:
∙ A pool of skilled IT professionals. NIIT helped to create a pool of skilled IT professionals in India. This pool of
talent helped HCL to meet the growing demand for IT services in India and abroad.
∙ Relationships with potential customers. NIIT helped HCL to build relationships with potential customers. As
NIIT trained students in IT, these students became potential customers for HCL's IT services.
∙ Brand awareness. NIIT helped to raise awareness of HCL and its products and services. As NIIT became
more well-known, so did HCL. This helped HCL to attract new customers and to grow its business.
Opening NIIT was a strategic move that helped HCL to grow and succeed. The benefits that HCL gained from
opening NIIT helped the company to meet the needs of its customers, build relationships with potential
customers, and raise awareness of its products and services.
7. HCL 1-2-3 (GROWTH STRATEGY)
It provides a holistic view of what HCL technologies can precisely offer an organization:
● Mode 01: Focus on Core services. Targets the Existing tech services and focuses on improving efficiency & agility by
introducing/integrating new technologies.
➔ Application Services
➔Digital Process Services
➔Infrastructure Services
➔Engineering and R&D services
● Mode 02: focuses on next-generation services by looking into the next big digital leap through insight-based,
experience-centric, and outcome-driven integrated services that influence next-generation technologies.
➔Digital & Analytics
➔IoT (Internet of Things)
➔ Cloud Native services
➔ Cybersecurity and GRC services.
8. HCL 1-2-3 (GROWTH STRATEGY)
● Mode 03 of the strategy focuses on platforms and products. These services deal with innovative
software solutions that help clients to become future-ready.
➔Building new Products and Platforms through innovation.
This unique strategy of ours constantly challenges the status quo to differentiate in the
marketplace, and it has further challenged us as a constantly evolving organization to re-skill
employees from time to time to ensure their know-how is ahead of time.
9. EMPLOYEE FIRST, CUSTOMER SECOND
● HCL Flipped the Org structure, making the low-level employees the top priority, which was managed by
Mid-level managers followed by top-level management. (This increased the average revenue per
employee for HCL to USD57,800 where as TCS and others had USD 46k), by this, they overcame the flaw
of “Creative decry- Devaluing creative abilities without giving anyone opportunity)
10. The power of ideapreneurship
● Meaning ideas of entrepreneurship from the employees. Created a valued portal where the problem was
discussed and ideas were welcomed by all employees and reviewed by the panel- rating-based evaluation.
A win-Win situation gave employees motivation and a sense of ownership and the solution helped to sell
to more clients and save the cost. (Portal Name: MAD JAM)
Lead Gen
● Way of connecting the delivery/low-level employees who actually work with customers who know the
issues; they could connect directly with the top management, which built the strategy and helps in
knowing what is happening on the ground
Decoding value centricity
• Process Revision systems (Fast Shipments; Peak time fluctuations, Increasing competitions, new
technologies), Billing system improvement, Automation (For small procedures to avoid human labor),
Business Process Transformation (Eliminated some steps)
11. BOORISH CUSTOMER
(Customers only stay until and unless the price is competitive), but with HCL 85% of customers retained, this is
not a strategy but good term to use in the presentation.
13. Benefits:
1. Cost reduction
2. New product launch time 1/3
3. 8 times invoice processing (Invoice processing speed increased by 8 times)
4. 90% lead time reduction
Business Lessons:
1. Quality as a service (Quality Differentiation) is must with so many competitors.
2. Recession is full of gift
3. Relation beyond contracts
