New technology, strategic investments drive growth for HCL Technologies

NOIDA, INDIA: HCL Technologies grew 12.6 percent YoY in FY2015-16 and clocked revenues of Rs 37,061 crore; net income rose 13.9 percent to Rs 7,254 crore.

HCL signed 58 transformational engagements during the fiscal with $5 billion of total contract value. These bookings saw significant momentum driven by next-gen ITO, engineering services outsourcing, digital and modern apps deals, each of which had a component of new technology constructs like digitization and cloud.

In the last quarter alone, the company’s infrastructure revenue exceeded $2 billion and financial services exceeded $1.5 billion. It added one client in $100 million+ and 5 clients in $40 million+ category driven by increased momentum in large deal in ITO and engineering and R&D services. It added 10 clients in $10 million+, 24 clients in $5 million+ and 47 clients in $1 million+ category, reflective of its digitalization and modern apps strategy.

Customer wins:

HCL has been a part of choice for some large customers including Fortune 500 and Fortune 100 companies in their digital transformation journey. As an Engineering and R&D Services (ERS) partner, it has enabled some of the large manufacturers significantly reduce the turn-around time.

Some of the notable wins include:

Digital:

This quarter HCL inked several significant engagements in modern apps and digitization.

For a multinational financial services company, HCL will develop digital security to be leveraged globally across their multiple lines of businesses.

As a part of digital transformation, it will deploy an application modernization framework atop the legacy mainframe billing software for a large US based multi-state gas utility. The initiative will focus on improving the customer experience for the company across multiple channels.

HCL will implement a global B2B digital platform for one of the world’s leading global hygiene and forest products’ company with branches in 50 countries.

HCL has won a deal to support the supply chain IT organization of a global ICT leader. It will bring in its expertise in integrating digital systems by using diverse technology platforms to differentiate and create next gen systems for the company.

HCL has signed an engagement with one of the world’s leading Internet-related services and products company to develop advanced decision support and process automation tools by using Web 2.0 and big data technologies.

HCL has been selected by a US headquartered multinational telecom giant to build a next generation digital platform to support one of its strategic acquisitions. The engagement will entail integration of e-commerce platforms and building new business process flows for the company.

Engineering and R&D Services (ERS):

In Q4 HCL signed many multi-year, multi-million engagements in ERS with global leaders across industries.

As an ERS partner for a leading US based medical devices organization, HCL will provide services in new product development, product sustenance, end of life management and compliance.

Similarly for an aerospace company, HCL will take up the turnkey engineering responsibility for several flight critical systems and subsystems of the company. It will set up CoEs for embedded firmware; software and test engineering which will help the client strengthen its existing and future aircraft programs.

For a commercial vehicles manufacturer, HCL will be a partner in the client’s R&D transformation journey, by providing product development and sustenance engineering to help the client customize existing products or launch new ones.

IoT:

HCL has signed an IoT engagement with a leading European manufacturer to implement its next-gen business strategy. As a part of this multi-year engagement, HCL will develop a client specific platform and harness the intelligence from its industrial equipment commissioned globally. HCL’s IoT solutions and approach will aim to enable the customer’s drive for significant growth of their services business.

Cloud computing, automation and systems integration:

HCL has been chosen by a pharmaceutical company for SAP transformation to streamline commercial and manufacturing process.

It will provide support IT support services for a large multilateral financial institution across 170 international offices.

HCL has been selected by a global leader in locomotive design and manufacturer for an IT infrastructure transformation engagement. As part of the engagement, HCL will be responsible not only for build, operate and transfer a multi-sourcing services integration and management (SIAM) function but also for providing global end-user support through multilingual service desk, end-user hardware provisioning and workplace engineering services across 360+ locations in 62 countries.

The SI has been selected by one of the world’s largest engineering firms for delivering next-gen data center services. As part of this engagement HCL will implement a cloud-based IaaS solution across the globe.

HCL has been selected by a leading global logistics provider for end-to-end cloud implementation with orchestration, next-gen service desk platform, DR on cloud and enterprise mobility management.

HCL has signed a multi-year engagement with a Fortune 100 health plan provider for application monitoring, DevOps and mainframe tools deployment.

Investments:

HCL has entered into a definitive asset purchase agreement to acquire certain assets of the privately held Trygstad Technical Services, a US based company with deep expertise in the areas of core engineering, IoT, Embedded and Intelligent Systems. With this strategic acquisition, HCL enhances its ability to provide additional value and turnkey solutions to ecosystems of large independent software vendors.

HCL recently launched a consumer experience and innovation center (called cXstudio) in the Netherlands with Aegon to deliver customer experience excellence through the adoption of the latest digital technologies with a key focus on mobility.

Partnerships:

HCL and CSC recently signed a definitive joint venture agreement to form a banking software and services company. The joint venture will invest in platform modernization and product functionality enhancement and will capitalize on capabilities of both companies in addressing the multi-billion-dollar, global core banking software market.

HCL has extended its partnership with SAP to include a wide scope of services around core business analytics, including big data, the SAP 360 Customer solution, customer analytics and digital services.

HCL signed several strategic partnerships this year with leading IT players like:

• Moogsoft, an enterprise service assurance player to address service assurance modernization market for cloud, SDI and IoT .
• Tele2, a European telecommunications operator to address market opportunities for Machine-to-Machine (M2M) and IoT solutions in Europe.
• Blue Prism, a robotic process automation (RPA) technology, for delivering next generation business services through RPA.
• AppDynamics, to help enterprises transform application operations as part of its digitization offering.

CIO endorsements:

“The unique thing about working with HCL has been their willingness to come to the table and work with us to make it successful. We’ve always been on schedule and are very pleased with the process that we have in place for providing support." CIO, One of the Leading American manufacturers and retailers of outdoor wears.

“My biggest surprise in working with HCL has been the passion and the dedication of the employees. I expected the competence, knowledge, process, but what I really didn’t expect was that their willingness and passion to get the job done, their doing the extra effort, their working harder, their creativeness and their dedication to my problems." SVP, Business Operations, A F500 diversified financial services group of companies.

Management speak:

“The 21st century enterprise is witnessing both new threats and opportunities in an environment which is dynamic. In many ways, culture is becoming increasingly important to navigate these challenging times and HCL’s philosophy of ‘Relationship Beyond the Contract’ has ensured that highly engaged employees have been able to create value in unexpected ways for clients. This has led to a strong growth performance, but more satisfyingly, very high levels of customer delight for us,” said Shiv Nadar, Chairman and Chief Strategy Officer, HCL Technologies.