HCL Technologies. Harvard Business School case study.

1. Presented by-
Himanshu Saigal (13021)
Twinkle Chaudhary (13065)
Aamir Ansari (13074)

2.  Indian global IT
services company.
 India’s most
successful hardware
company.
 Headquartered in
Noida, U.P, India.
 Has offices in 31
countries.
 It has consolidated
revenue of $6 billion
in 2013.
 Founder- Shiv Nadar
 Divisions- software
consulting, enterprise
transformation services,
Enterprise Application
services, Custom
Application Services &
BPO.
 Employees at present- 1
lakh.

3. 1974
• Indian government passed FERA
1976
• Shiv Nadar founded HCL with fellow Engineers.
1985
• Vineet Nayar Joined.
• HCL entered the global market.
1990
• Joint venture with HP.
1992
• Vineet found HCL Comnet.
2000
• Vineet became president of HCL.
• Centralized the company.
• Comnet was one of the HCL’s most innovative & successful businesses

4. Go after big deals.
Differentiate ourselves.
Improving operating efficiency.
Strategic partnership with other companies
to reach customers.
50% of income from services.

5.  Stands for Employee First, Customer Second.
 Four objectives-
a) To provide a unique employee environment.
b) To derive an inverted organisational structure.
c) To create transparency & accountability.
d) To encourage value- driven culture.

6.  Intranet
SSD- a help desk
U&I- direct contact
Natasha- animated woman
 360 degree feedback
 Trust Pay- for junior engineers

7. Win-win situation for both.
Focus on mega-deals.
Success of quality group.
Addition of 180-person global sales team.
Got $50m deal.
Won a strategic partnership agreement
with Japanese steel manufacturer.

8. Following Blue ocean strategy.
Won $330m DSG Int’l deal.

9. Q1. What were the challenges facing HCl
Tech. When Vineet took over ?
Behind Indian and MNC competitors
(Wipro, Infosys, TCS) because of Software
& Services trend 1980 & 1990
Brand name getting destroyed
Attrition rate gaining to 30 % much higher
than industrial standards.

10. Q2. What were Vineet’s key moves ? Most
important.
Ans. 3 Part Transaction Strategy :-
(1) Employee 1st Customer 2nd
(2) Strategic Partnership, Larger & Complex
Engagements
(3) By 2010 – Change Business Model
 Mirror Mirror – Interacting with Employees
& Motivating
 Centralisation
 2 Operating Groups – Management
Consult for Delivery ; Management
Consult for Sales

11. 360 Development Reviews
5 Lines of Business for setting the
structure & system
In multi service delivery – cross functional
groups
Intranet & Automation for transparency
Trust pay
Important key Move : EFCS

12. Q3. How effective has he been to leading
HCL Tech. ?
Ans. YES
Attrition rate declined to 19.5 %
Nov 2005, $ 50 million Autodesk deal (1st
big deal)
Dec 2005, won strategic partnership
agreement with Japan’s second – largest
steel manufacturer.
Jan 2006, HCL won $330 million DSG
International deal (India’s largest
outsourcing deal)

13. Q4. Why EFCS ? Is this a good idea?
Should Vineet Announce ?
Ans. Service industries employee interface
with customer is critical.
Investing in employee’s development &
unleashing their potential to produce
bottom line result.
Yes it’s a good idea & he should
announce.