HCL Outlines Its Cloud Computing Achievements

Analyst Coverage

January 07 To September 09

HCL Outlines Its Cloud Computing Achievements

"Its client base extends from the enterprise segment to technology vendors. For technology vendors, the company assists in servicing the clients of its clients. The SAP cloud offering is unusual and competing services are only offered by 2 U.S. headquartered vendors and half a dozen European IT services vendors."

HCL Technologies has recently outlined key contracts for its cloud computing offering. The company has been involved in building and sometimes operating private clouds for technology vendors and ISVs, combining its product engineering, application and IT infrastructure outsourcing capabilities. The company has been involved depending on the client from the business and IT strategy phase to the project delivery.

The range of services that the company has provided is wide: it has been involved in redesigning the internal infrastructure of several ISVs or helping with the software product strategies of its clients to external clients that include first-tier ISVs and technology vendors with headquarters in the U.S. and in Europe and others.

For a U.S. Fortune 1000 ISV: HCL has been involved in several initiatives including simplifying the application architecture of its internal ERP applications, upgrading SAP applications and supporting servers. As part of the SAP server transformation, HCL Technologies has migrated the physical servers from a competitor's datacenter into its own in Georgia and virtualized those to build a private cloud for the production environment. The company established a back up site to Sungard that is used for testing environments. The client favored building a private cloud rather than using public cloud services for several reasons including its requirement to provide a recovery within 15 minutes. HCL has however wherever possible aimed to share select elements e.g. networks and managed security among several clients.

For a Europe-based Fortune 500 ISV: HCL has helped design the client's strategy for its midmarket clients. The client's mid-market SaaS-like offering includes the license cost and the underlying maintenance & support, help desk and hosting services. The application is however single-tenant. A key challenge for HCL has been to keep IT costs under control to enable the SaaS offering of SAP to be profitable. The service is available for demo, trial and production for a fixed price per user per month.

2

TPI Names HCL Amongst 2009 Top 10 Infrastructure

Providers by TCV

HCL has been named amongst the 2009 Top 10 Application Development and Management (ADM) and Top 10 Infrastructure Service Providers by Total Contract Value (TCV). TPI has also named HCL amongst 2009 Top 15 Americas Service Providers and 2009 Top 15 EMEA Service Providers by TCV.

In the recently launched TPI Index, an analysis based on the FY09 and 4Q09 state of commercial outsourcing market launched by TPI, HCL has been named amongst the 2009 Top 10 Application Development and Management (ADM) and Top 10 Infrastructure Service Providers by Total Contract Value (TCV). TPI has also named HCL amongst 2009 Top 15 Americas Service Providers and 2009 Top 15 EMEA Service Providers by TCV.

Other highlights of the TPI index are:

$25 billion contracts were awarded in 4Q09, up by 47 percent Quarter over Quarter (Q/Q) and 8 percent Year over Year (Y/Y); strong mega-deal performance in the quarter. TCV was the second-lowest of the decade as the market bottomed in the first half and turned in the second half — full year 2009 TCV is down by 13 percent. ITO market had its best quarter in six years. Fourth quarter ITO TCV is up by 32 percent Y/Y — best quarter since 4Q03. had a very strong fourth quarter led by some very large deals. The region‘s 4Q09 performance is significantly up (Q/Q and Y/Y). However for 2009, TCV was down by 21 percent. threelargestindustryoutsourcingverticals strengthened in the second half of the year. Financial Services, Manufacturing, and Telecom and Media showed strong second-half increases. annual TCV awarded was lowest of the decade.

3

HCL acknowledged as an experience partner

for Virtualization services

HCL has been positioned as a “premier full-service infrastructure service providers. HCL Technologies' virtualization offerings are particularly suited to large companies looking for an experienced partner, existing outsourcing clients and clients who may wish to outsource their environment after virtualization.”

―From its legacy of building and operating a high-availability, high-response time infrastructure, HCL Technologies has developed into one of the premier full-service infrastructure service providers. Its virtualization credentials include engagements with more than 25 Fortune 500 and Global 1000 customers, a global system integration partnership with VMware and partnerships with Microsoft, Cisco, EMC, Hitachi Data Systems and Sun Microsystems, and a team of more than 150 virtualization professionals supported by 300 other infrastructure implementation specialists on a worldwide basis.

While HCL Technologies offers traditional consulting services to virtualize servers, storage, networks and desktops, it started offering in January 2009 a unified virtualization as a service (UVaaS) offering, providing network, storage, server and desktop virtualization. In this offering, HCL Technologies takes over a client's hardware assets, virtualizes them and "rents" them back to the client on a per-month, per-virtual instance basis. For clients, this means no capital expenditure (capex) investments and no upfront investments on licenses. It also offers "Business Ready with Virtual Infrastructure Utility" for specific applications, such as SAP. To date, it has implemented more than 100 licenses. Clients can pick among three productized service packs: basic, gold and platinum, depending on the level of services needed. Pricing is dependent on the number of servers virtualized. As an example, a basic service pack starts at $35 per virtual machine per month.

HCL Technologies' virtualization offerings are particularly suited to large companies looking for an experienced partner, existing outsourcing clients and clients who may wish to outsource their environment after virtualization. Client feedback indicates that HCL Technologies is particularly flexible as a partner, has the experience and capability to help clients avoid pitfalls in their virtualization journey and is willing to invest in clients by performing upfront work, such as planning and justification on "their own nickel.‖

4

HCL acknowledged as a Tier 1 provider with

end-to-end services and solutions to M&E

M& E Market Landscape ―HCL has transitioned from being a niche provider to a Tier

1 provider with end-to-end services and solutions to the M&E industry‖

HCL looks at the market from the media executive perspective and projects ahead to future trends and issues that will impact the business.

HCL differentiates itself from other Tier 1 vendors through its ―Total IT Outsourcing‖ solution, which requires an examination at all aspects of HCL's customers' IT landscape and associated costs, by leveraging its strengths in three service areas: applications, infrastructure and business processes.

HCL has an ―ASSeT‖ transition methodology designed to reduce transition time and risk through reusable accelerators.

HCL rated “Positive” in Gartner's MarketScope For

Managed Security Services, 2009

―HCL Technologies is an offshore provider that can build on its experience as a strong player in the local market in India. In Europe, HCL is still a small player, but has good growth potential. HCL experienced the highest growth rate (in terms of customers) in 2009 of all providers in this MarketScope, albeit from the lowest level.‖

In this report Gartner has acknowledged HCL‘s • Competitive pricing. • Number and quality of skilled resources. • Flexibility on engagement management. • Experience in providing offshore, shared-resource environments

6

Gartner Recognizes HCL Capabilities in M&E

— HCL has transitioned from being a niche provider to a Tier 1 provider with end-to end services and solutions to the M&E industry. The recent acquisition of Axon provides HCL with a stronger SAP practice. HCL's demonstration to the market of their emphasis on "employee first" carries to client engagements in which issue resolution and responsiveness, together with a proactive stance on innovative thinking, is apparent. The culture of trust, transparency and flexibility has created a strong partnership with its client base. Marketing Strategy — HCL provides consulting, infrastructure outsourcing, application outsourcing, BPO, quality assurance (QA) testing, and product engineering support services. HCL has an "ASSeT" transition methodology designed to reduce transition time and risk through reusable accelerators. HCL is focused on building domain-specific solutions to a "microverticalized" approach. Its strategy is to become an end-to-end provider with unified service offerings to address content, communications, and services synergies for convergence. HCL invests significantly in industry-specific solution developments, such as Content 2.0 (a network publishing platform for new age publishers), digital rights management, an "Integrated Media Platform for Asset-Centered Transformation" (IMPACT), which is a digital asset management solution framework, digital TV, social-networking platform (open- source-based), a gaming converter protocol, and multichannel server-based gaming. HCL Competes — HCL looks at the market from the media executive perspective and projects ahead to future trends and issues that will impact the business. It invests to mitigate risks for the clients' benefit. HCL suggests solution innovation throughout the engagement via a "value creation" portal in which there is transparency and communication of new idea exchanges between the client partner and the project team. HCL differentiates itself from the market with its outcome-based commercial models in which there is a shared-risk/shared-reward deal structure and it seeks to identify potential new revenue opportunities for its clients. HCL, for the past year, has been focusing on the concept of business-aligned IT. It has been in discussions with customers to educate them on the need to align IT with business imperatives and make technology-related decisions, keeping in mind the business domain, technology and operations. Additionally, HCL differentiates itself from other Tier 1 vendors through its "Total IT Outsourcing" solution, which requires an examination at all aspects of HCL's customers' IT landscape and associated costs, by leveraging its strengths in three service areas: applications, infrastructure and business processes.

7

Gartner strongly speaks for HCL‟ s offerings

in Infrastructure Utility for SAP

HCL has delivered infrastructure services in India for a long time before offering remote infrastructure management services to the U.S. and recently to Europe-based clients.

HCL's IU approach has been developed during the past five years and includes three distinct offerings:

HCL's BRI is for organizations with more than $1.5 billion in revenue with dedicated computing resources. The Midmarket Infrastructure Service Factory is virtualized and shared, and it's priced on a pay- per-use basis within pricing bands or ranges. EZ ERP, delivered in India or client-owned data centers to clients that want to move from legacy homegrown systems to an industrialized ERP system.

HCL takes full responsibility for the infrastructure with defined SLAs, and allows users to ramp up in usage or dial down in the selected band.

HCL reported more than 10 BRI clients and more than 45 clients for IU SAP services overall, for a total of 40,000 named users.

8

Bathwick Sentiment Indicator Panel ranked HCL

the highest among the Indian-heritage vendors

Bathwick Service Index (BSI) research for the fourth quarter of 2008

Market dominated by cost reduction is forcing private and public sector CIOs to make bold decisions

June,2009

During the quarter to end of December 2008 most vendors saw slowing growth in Europe, reduced to a 2% to 5% revenue growth range, with HCLTech bucking this trend.

HCLTech saw the most improved standing on the BSI for an Indian- heritage company

HCL completed an impressive quarter in Europe by closing the largest acquisition of any Indian IT services vendor to create HCL Axon, as well as winning the Nokia desktop deal from IBM.

HCLTech scored most highly among Indian-heritage vendors in terms of buyer confidence in the Sentiment Indicator Panel for the quarter.

HCLTech has put in an impressive quarter in Europe: completing the largest acquisition of any Indian IT services vendor to create HCL Axon, and winning the Nokia desktop deal from IBM.

the quarter to end of March 2009 most vendors saw flat or declining growth in Europe, reduced, on average, to a -3% to flat revenue decline. HCLTech bucked this trend with high single digit YoY growth

has fire in its belly and is winning some impressive global deals including RDA, & Xerox

Europe it has its eye firmly on public sector and utilities and has already been named one of Britain‘s top employers.

Positions for Q4 2008. Source: The Bathwick group

9 A breakdown of HCL Tech‟ s overall BSI score

HCL rated “Promising” in Gartner's MarketScope

For Telecom Expense Management, 2009

― HCL is best positioned to service global expenses for large MNCs, irrespective of spending on fixed services or the number of handsets to be managed.‖

10

Gartner writes first case study for HCL in

North America

HCL's "transformational" response proved the optimum solution in the bid process, but also promised a more- aggressive use of the global delivery model for both application support and remote infrastructure management to drive down cost

HCL‘s • • • • • • •

Full-Service Outsourcing Model was chosen based on the following Varied provider options Price competitiveness Funding of transformation efforts would be outside of the outsourcing deal Single- or multi geography delivery options Transparency Adoption of a strong legal framework Provider passion to win the business

Measured against Teradyne's objectives, the outcomes achieved by HCL exceeded expectations: • Thirteen percent reduction in the number of discrete applications and infrastructure components • Twenty percent reduction in cost per employee of IT staff • Moving toward reducing application portfolio by 48%, with a collaborative transformation team of HCL and Teradyne • Infrastructure transformation and optimization, consisting of virtualization, consolidation and technology refresh • Global delivery model developed and deployed by the HCL team

• Customer portals to improve customers' access to eKnowledge by 70%

11

HCL Technologies Recognised as one of Britain‟ s

Top Employer

Britain‟ s Top Employers 2009 by CRF International

April 24, 2009

“To be in a position to attract the best talent, companies must align their people management policies and procedures with the right corporate culture”.

“HCL‟ s emphasis on empowering staff at all levels within the organisation especially impressed us. Having recognised its commitment to help employees proactively build their skills and achieve to their full potential, we were delighted to be able to accredit the company as one of Britain‟ s Top Employers

Dominic Knight, Regional Director for UK, Ireland & Northern Europe at CRF

12

HCL‟ s Green IT initiative recognized by Forrester

Forrester counts HCL as a highly-regarded services company withstrong presence in Infrastructure Management and Outsourcing.

is entering in the Green IT services market by building on its infrastructure outsourcing and IT strategy engagements with customers

HCL‘s ―Green edge‖ program is in development, adding capabilities like GHG tracking and waste and water management to its data center and IT asset management expertise.

HCL currently has a number of customers for its green IT services and will be broadening its footprint with those clients and others drawn from its existing client base in manufacturing industries like automotive, aerospace, and high-tech.

13

HCL Technologies Awarded 6 year Data Center

Management Contract by Xerox

April 15, 2009

HCL Technologies has announced its award by Xerox of a 6-year contract to manage 9 Xerox mid-range regional datacenters in the U.S. and Europe, in a deal valued at $100m.

Services to be provided by HCL include

Data center hosting and migration, virtualization, consolidation and storage architecture services

Architecture and consulting services for new technology and system design, adoption and lifecycle improvement

Business continuity and disaster recovery.

Analyst comments:

HCL will use its Business Service Management process to centralize and standardize Xerox's data center infrastructure.

It was no surprise that Xerox moved away from EDS, now an HP company. It is not yet clear what Xerox intends to do with the end-user workplace services it also outsourced to EDS in a contract extended in April 2008 Xerox chose to outsource to HCL rather than another new (BPO) partner IBM

14

HCL Technologies Announces Fiscal Q3 Revenues

up 18.2% to $564m – Nelson Hall

• HCL Technologies has announced fiscal Q3 2009 revenues, for the period ending March 31, 2009, under U.S. GAAP of $564.4m up 18.2% y-o-y, and up 11.3% sequentially. In constant currency y-o-y growth was 27.4% and sequential growth was 12.9%.

• Excluding the benefit of the Axon acquisition, the key growth areas during the quarter were EAS and infrastructure services.

• Axon contributed $75m revenues in fiscal Q3.

• Nelson Hall says ―while the market demand for SAP project-based services is still very soft, Axon will ultimately benefit from HCL's offshore capabilities and broader geographic presence, and HCL is targeting opportunities to offer adjacent IT services to Axon's client base. In particular, Axon brings relationships in the E&U sector in the U.S. and the U.K. public sector.”

Source: http://www.nelson-hall.com/research-programs/tracking-service/industry-insight-database/?avpage- views=article&id=65282&fv=2

15

HCL recognized as a “Leader” in The Forrester Wave: Global IT

Infrastructure Outsourcing, Q1 2009 with highest scores in

customer satisfaction

Leaders Align To Business Requirements And Strengthen

Service Delivery HCL Technologies. Although certainly much smaller than the

legacy powerhouse service providers, HCL‘s rapid growth in the

infrastructure space (>65% CAGR over the past three years) is

no fluke.

The firm continues to grow delivery capability, including a new

facility in Raleigh, North Carolina, and it has growing

partnerships with SunGard, Xerox, Unisys, and others.

HCL Technologies also demonstrated good evidence of a

nonlinear relationship between client geographical distribution

and infrastructure staff distribution (suggesting good capability

at moving work in a way that balances cost and requirements).

HCL Technologies had excellent reference client scores, and it

also is well positioned to gain the scale it needs with a sound

forward-looking strategy for the infrastructure business.

16

HCL named “Best Employers” in Asia and ranked

No: 1 in India by Hewitt in its 2009 Study

HCL has been selected for ―its remarkable

consistency in its day-to-day business and when

they respond to difficult times.‖

17

HCL Awarded USD 350mn USD Total Outsourcing

Contract By Reader's Digest Association

Mar 27, 2009

RDA CEO Mary Berner states reason for choosing HCL.

―HCLwasaggressive collaborative‖

smart, forthright &

RDA is aiming to digitalize its paper-based archives and allow them to be accessible through the web, through mobiles or through other channels.

The cost-savings-funds-transformation approach has however a price: the initial phase is expected to last for 18 months and therefore delay new digital initiatives.

Som Mittal, President NASSCOM

―We congratulate HCL for this landmark engagement, this deal reinforces the fact that how global sourcing help companies to take advantage of talent, new opportunities which will help revive current economic situation‖

―What Slump? HCL Hindustan Times

gets USD 350 mn deal.‖-

The goals of the contract are to:

Lower the cost of running the IT of the client

HCL aims to consolidate services at the central level,standardizeinfrastructureand applications, homogenize processes and tools across the firm

Increase quality by adopting ITIL best practices and CMMi 4 certification

Finance transformation projects achieved on run services.

by savings

―HCL is aggressive, other IT Services companies should be ripping pages from HCL Playbook‖

- Business Week

18

HCL Recognized as „Challenger‟ in Gartner Magic Quadrant For

North American Help Desk Outsourcing Services, Q1, 2009

4 March 2009

Magic Quadrant for Help Desk Outsourcing, North America

Gartner goes on record to say:

Help desk services are still emerging from India, but HCL is one of the leaders, and it handled, worldwide, more than 7 million help desk trouble tickets in 2008.

HCL has service desks in five geographic locations, besides Raleigh, North Carolina, in the U.S. The other four locations are lower-cost alternatives: India, Northern Ireland, Poland and China.

HCL has designed a best-practices framework during a typical engagement life cycle, which is benchmarked against the HDI Support Center maturity model to enable smooth and resilient delivery of help desk services.

Source: Gartner (March 2009)

19

“HCL Has Emerged As A Vendor To Watch”- Gartner

04-Mar-2009

HCL has been investing in utility-type offerings for IT infrastructure for more than five years. HCL actually has three distinct offerings and several more in development. These include: HCL's Business Ready Infrastructure (BRI) offering Midmarket Infrastructure Service Factory An India-specific offering called EZ-ERP HCL's offerings can be categorized as an IU with a degree of maturity along Level 3, as defined by the Gartner IU Maturity Model (IUMM).

Gartner believes that the most-positive attributes of these offerings include:

The clarity of the target market definition by size and scope of each client base

The degree of standardization of infrastructure services, the SLA structure and the pricing model

Offshore capabilities

HCL's flexibility and willingness to deviate from the core IU solution as large, complex clients chose to "phase in" their adoption of utility services by starting with a privatized model

20

HCL Effective in Addressing Vendor Consolidation

and Migration Issues - ARC

MARCH 26, 2009

HCL Technologies has pioneered best-practice methods, realizing the challenges faced by users attempting migration and vendor consolidation

ARC refers HCL‘s eZMigrate as a comprehensive framework that covers every stage that is critical for integration, transition, and vendor consolidation.

ARC believes that eZMigrate has evolved out of HCL Technologies‟ years of sound knowledge and expertise acquired through numerous project implementations

With eZMigrate HCL Technologies is in a position to provide a relationship oriented, technical, and commercial solution that minimizes cost and risk of vendor transition, while ensuring business continuity.

HCL is one among the few companies having extensive experience in providing application services and deep insight about the leading enterprise solutions.

The fact that the company has won 31 out of 38 vendor consolidation opportunities that came its way in recent times testifies to customers‘ acknowledgement of HCL Technologies‘ ability to accelerate business transformations, vendor consolidation, and migration

21

“HCL- A Leader In Developing Green Agenda”- AMR

HCL is the leader in developing service offerings with the green agenda

HCL offers integrated suites of green-focused services.

HCL is going to significant lengths to get its own houses in order through eco-friendly and LEED- certified (or equivalent) campus and building

HCL has recently developed its Green Edge service portfolio, much of which appears to remain heavily committed to the green data center and delivering efficiency in the IT area developments as well as cross-organizational sustainability initiatives

22

The Nokia Deal positions HCL as the leading offshore provider in

help-desk and desktop management outsourcing in Europe - Gartner

5 Feb 2009

The landmark deal covers 76 countries and 13 languages, and serves an estimated 50,000 Nokia users.

Gartner says, HCL's ability to successfully perform this transformation to reduce costs and improve service delivery will determine deal success.

The deal will increase HCL‘s market share and credibility, and trigger more intense global competition

23

AMR classified HCL as a Strong Performer

for its Fiscal 2nd Quarter-2009

AMR says the acquisition of Axon Global still looks like a smart move; otherwise enterprise application revenue would have been down.

It‘s the exchange rate, due to which the net income was $76.6M, down 9.3%. Without forex losses, net income would have been up nearly 28%.

In the wake of Satyam‟ s collapse, HCL is wisely highlighting its commitment to corporate governance, including specific actions that make the company‘s financial activities more transparent.

Caution:

BPO is one area that‘s behind peers and where the company‘s recent industry-specific acquisitions of Liberata Financial Services (financial services) and Control Point Solutions (telecommunications and media) have yet to bear significant fruit.

24

Forrester recognizes HCL as the Most Active

Acquirer

January 13, 2009

Forrester has examined how the key players in the IT services market have fared and how they are adapting

their strategies to not only the looming downturn but also to the new technology ecosystem

With the exception of Capgemini and HCL Technologies, none of the providers completed more than one acquisition in H2 2008. In addition to the acquisition of Axon Group, HCL Technologies also acquired Control Point Solutions (specializing in voice, data, and wireless services) and Liberata Financial Services (a leading UK-based BPO provider).

Providers Adjust Their Go-To-Market Strategies To Deal With Market Change

The Service Providers Forming The Most Partnerships

HCL Technologies continue to expand their global delivery footprint. HCL Technologies‘ proportion of fixed-price projects increased from 31.2% for the quarter ended September 2007 to 36% for the quarter ended September 2008.

25

Base:55partnership activities tracked among 23 ITservicesand outsourcing providers

HCL playing the game differently - Tech Market

View

HCL is being highly appreciated on the increased level of financial transparency and a “full and frank” disclosure of every financial services institution around the world where they have deposited cash and bonds.

HCL won $ 1 bn new order in the last quarter the largest being the $350m/7 years with a ‗worldwide publishing company‘ for a major Oracle project including infrastructure management (IM). 64% of the H1 deals that HCL won were against global majors.

Since the acquisition of Axon, the new HCL-AXON business has won four new deals, have not lost a single client and no Axon work has moved offshore. In the current quarter the revenue is expected to be $95m (say £70m).

The HCL-Axon could look a very attractive offer, at least in the UK and US – a premium onshore front-end with an established Indian back-end.

With LFS, HCL is trying to move into ‗platform BPO‘, and Life & Pensions is a hot market in the UK but finding that (re)building the processing platform a lot harder than expected as with TCS.

HCL is becoming an ever more interesting player to watch, especially in the UK. Being under half the size of the TCS, Infosys and Wipro by worldwide revenues and with rather lower margins, it is playing the game differently.

26

HCL, 1st Indian Provider to establish U.S. Helpdesk -

Gartner

Indian providers had been establishing U.S. operations, like Wipro acquired Infocrossing; TCS & HCL setup delivery centers in Cincinnati, Ohio, and Raleigh, North Carolina

HCL, the only Indian provider announced to offer help desk services domestically in North Carolina which is a starting of settings up helpdesk centre (24/7) in US while using U.S. employees

27

HCL's Global Meet- Providing Structure in an

Unstructured World by IDC

Dec 2008

HCL‘s "Unstructured" Global Meet was a concerted effort to "step out of the box" to engage its customers in strategic relationships in the current global economy

HCL made its customers think on the platform of innovation and to reflect on the meaning of strategic value of implementing iterative incremental improvements over time.

Speech by Gary Hamel to 500 customers-"How do you build a company that is as human as the people that work within them, as most organizations are less capable than the people within them.―

Future Outlook:

Business-aligned IT- HCL continues to evolve its application life-cycle strategy and internal frameworks to support more flexible client IT alignment

ERP revitalization- WITH AXON acquisition, HCL strengthens its foothold in the SAP world

The green edge- HCL has rolled out its Green Services Framework and Green Product Engineering services (GPES) for customers

Business-aligned R&D- HCL‘s new paradigm for global collaborative innovation enables it to move up its customers‘ value chain

Aligning employees with business- To help its clients address the concept of innovation, the dual need to recognize employee value and create environments that foster employee innovation

IDC appreciates HCL Global Meet- event that revealed HCL‘s growth and maturity in listening to and hearing the voices of its own customers.

The future of HCL may ultimately rely on how it successfully mines and transforms unstructured elements into structurally sound winning business outcomes

28

HCL considered as an Active Indian Offshore

Service Provider - Gartner

Among the mainstream Indian offshore service providers, HCL is considered to be very active in the Indian domestic market along with TCS and Wipro

HCL Technologies has a wide portfolio of offerings and a strong focus on the Indian customers apart from their large offshore operations out of India.

29

HCL rated “Positive” in Gartner's Remote

monitoring & Support Services MarketScope, 2008

Gartner appreciates HCL's strategy focuses on using a co-sourcing model, which ensures collaboration with each customer's business.

HCL has developed proprietary frameworks and tools to ensure that remote delivery is of high quality and is process-oriented to benefit its customers.

The structure is set up so that HCL owns the service SLAs, and customer owns the business user interface and strategy.

30

HCL amongst the Challengers in European Offshore

Application Services- Gartner

Strengths:

HCL- leverageitsintegratedoperations management framework HCL has a targeted sales strategy- focus on business value delivery

Clients recognize HCL for:

Flexibility to adapt to changing business needs

Challengers: execute well today but have a less-defined view of market direction. They may not be aggressive and proactive enough in preparing for the future.

31

HCL amongst the Leaders in North America

Offshore Application Services- Gartner

Strengths:

HCL-leverageitsintegratedoperations management framework HCL has a targeted sales strategy- focus on business value delivery

Clients recognize HCL for:

Flexibility to adapt to changing business needs Commitment to meeting on-time deliverables Lower attrition due to its "employee first" program

Leaders: performing well, have a clear vision of market direction and are actively building competencies to sustain their leadership positions

32

HCL is enabling Product Engineering and Support

Services for ISVs in the SaaS Ecosystem.

Consulting in the Cloud: The Emerging SaaS Consulting, Product Development, and Outsourcing Ecosystem Tuesday, June 24, 2008 Dana Stiffler, Robert Bois

HCL‘s main play in the SaaS ecosystem today is enabling product engineering and support services for ISVs. It has provided these types of services for years to software vendors, through the switch from mainframe to client-server, from client-server to web, and from on-premise to SaaS

HCL‘s traditional infrastructure expertise is a boon in these engagements, where the goal is to engineer a smaller footprint that‘s more compatible with on-demand computing and today‘s smaller data centers

33

Gartner rated HCL “Positive” in Managed

Security Services in EU

HCL has growth potential due to solid remotemanagementexperience, coupled with a good understanding of European market specifics.

HCL offers standard and customized SLAs. New clients praise the staff's due diligenceincapturingoperational knowledge and implementing it in scripts and processes in the company's SOC.

* Positive- Demonstrates strength in specific areas, but execution in one or more areas may still be developing or inconsistent with other areas of performance

34

IDC rated HCL as the leading India SPs in FS sector

Nov 2007

HCL transformation strategy is based on 5 pillars:

Pricing innovation Technology disruption Market creation Service innovation Investment in employees

HCL is one of the leading India SPs in the financial services sector

HCL Technologies‘ revenue in Asia/Pacific surged by 81.5% to US$64 million in 3Q07

It‘s beginning to win some of the larger deals in the region where it has beaten out some of the higher-profile competition (Fonterra Co-operative Grp-ANZ)

HCL Technologies has been successful in increasing the average deal size by going after larger and more complex engagements with its customers

35

HCL Technologies – A Key player in the Hong Kong

IT Services Market

36

HCL Technologies – A Key player in the Singapore

IT Services Market

37

IDC praises HCL‟ s shift in focus from volume to

value in APAC

With its new value-centric approach, HCL Technologies aims to drive higher revenue and to gain market share from the other Indian service providers (TCS, Wipro, Infosys & Satyam), as well as challenging the traditional leaders like IBM and Accenture in the IT and business services market place

HCL Technologies' next phase of their transformation strategy is based on five main pillars:

Pricing innovation Technology disruption Market Creation Service Innovation Investment in Employees

revenue in Asia/ Pacific surged by 81.5% to US$64 million in Q307 Share of Asia/ Pacific revenues in global revenues has also increased from 11.8% in Q306 to 15.0% in Q307

HCL Technologies' transformation strategy has delivered impressive results

The company is beginning to win some of the larger deals in the region where they have beaten out some of the higher profile competition

signed a key application outsourcing deal with Fonterra Co-operative Group in New Zealand worth approx USD 35 Million The deal highlights how the company is diversifying from its traditional strong vertical, namely financial industry, into other verticals

HCL Technologies has been successful in increasing the average deal size by going after larger and more complex engagements with their customers

This trend shows HCL Technologies' ability to engage in a business solution type of engagements with its customers IDC believes they will be able to grow the revenues much faster than their customer acquisition

38

Ovum sees HCL as a strong contender in Europe

HCL is a company that works very hard to differentiate itself from the pack of Indian outsourcers

HCL has very healthy growth and profitability indicators, which put it in a good position to expand and

invest in new capabilities, geographies and verticals

HCL has a much more balanced service line portfolio compared with its Indian peers, with much

stronger infrastructure and BPO service lines.

HCL positions itself away from commodity ADM work and into higher-value ‗transformational‘

outsourcing

HCL is a leader in its peer group in terms of offshore RIM services, and is well placed to pick up

expected growth in demand for these services

39

Ovum recognizes HCL‟ s position in the European

RIM Market

HCL has made a notable impact on the European RIM markets (particularly in the UK) in recent years

HCL‘s current aim is to move beyond this and into infrastructure and business process services as part of

an ongoing strategy to sustain growth rates, and achieve deeper customer penetration

growth rates in infrastructure management are significantly ahead of broader market growth

The current market demands suppliers to be flexible in how they engage and work with in-house IT

teams

For example, HCL uses its ‗co-sourcing‘ model to emphasis its position as a collaborator

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HCL‟ s value framework and methodology makes

waves

Adding business value for customers is an increasingly important focus of the

service provider industry

HCL has defined the concept of a ‗value framework‘, which is used to model not only

the context of the service provider and customer within the service delivery

relationship, but also the high-level context of the customer‘s business with external

parties

HCL‘s framework recognizes that either or both parties in the service delivery

relationship can be beneficiaries of particular measures to add value

Its case studies from one prominent customer in the financial services sector show

that HCL conceived changes to business processes, and the underlying technology

that delivers savings of over US$850,000 annually, without additional contractual

costs

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