Module 1-Introduction & Overview of HCL

HCL Scholar Handbook

Know your organization !Get Scholar Power !! Become a HCL Scholar !!!

Content Version Control Information

Title : HCL Scholar

Module Date of Release Version No. Prepared by Reviewed

ByApproved

By

Level 1 March’09 Version 1 Cheena Saraswat

Ram Kishore,Anshul Sushil,Robin Sarkar

Abdul Aziz Seyid

Level 1 June’09 Version 2 Cheena Saraswat

Cheena Saraswat

Abdul Aziz Seyid

Level 1 Aug’10 Version 3 Himani Garg Anshul Sushil,Anuj Kapoor

Heena Verma

Welcome Message from The HCL Scholar Team

HCL Scholar is a knowledge enhancement program which aims at providing a structuredand robust platform to assess HCL employees on their understanding about theorganization and its respective areas of operation.

Objective:HCL Scholar has moved beyond its initial scope of targeting just the client facingemployees to all the employees. It focuses on empowering employees with adequateknowledge about the organization with an objective of enhancing employee intellectpower thus bringing a paradigm shift from an assessment test to a knowledgeenhancement process.

It is a learning experience which focuses on sensitizing the employees about the variouslines of business and industry sectors of HCL thus empowering the employees to createvalue for the customer.

Welcome Message from HCL Scholar Team

As you begin this learning experience, you will be embarking on a journey. It is a journeyfor your own development, as well as for the development of the people you will beworking with. This learning experience will help you gain an understanding about theorganization, its core business lines, industry sectors and about HCL’s team, history andwork. This will also enable you to get acquainted with the external environment whichimpacts the company and ultimately the employees.

We hope you enjoy reading this e-handbook and use what you learn to help people to betruly magnificent & be able to create a self managed organization.

Thank you for participating.

Wishing you all the best!The HCL Scholar Team

Acknowledgements

We are profoundly grateful to the Corporate Branding and External CommunicationsTeam for giving us permissions to utilize published data on HCL websites. Many thanksto Anuj Kapoor and Anshul Sushil for all their extended Support !

Many thanks to Deepak Gupta, Sonu Rana, Abhiman Tiwari, Meena Bisht, Raveesh, Rakesh, Yogesh Batheja, Inderpreet Singh, Tirthesh and Parul from the BPR team, without their assistance HCL Scholar would not have been a reality.

Lastly but not the least, the T2ID Creative design team- Neetesh, Amit, Manish for all their efforts and commitment.

Non Disclosure Obligations and Disclaimer

• The data, information or material provided herein is confidential and proprietary to HCL and shallnot be disclosed, duplicated or used in whole or in part for any purpose other than as approved byan authorized official of HCL in writing.

• The recipient agrees to maintain complete confidentiality of the information, data and shall take allreasonable precautions/steps in maintaining confidentiality of the same, however in any event notless than the precautions/steps taken for its own confidential material.

• Any statements in this workbook that are not historical facts may include forward lookingstatements that involve risks and uncertainties; actual results may differ from the forward – lookingstatements.

• You cannot use any part of this presentation for mass distribution in collaterals without the priorapproval of the HCL Scholar Team.

MODULE 1- Overview Of HCL

MODULE 2- Business Lines Of HCL

MODULE 3- Industry Sectors of HCL

MODULE 4- Know More About HCL

MODULE 5- HCL Investors & Partners

Contents Page

WISH YOU ALL THE BEST…..

HAPPY LEARNING !!!

Module 1 – Overview Of HCL

OVERVIEW - HCL Enterprise

HCL is a leading global Technology and IT Enterprise with annual revenues of US $ 5.5billion . The HCLEnterprise comprises two companies listed in India:

• HCL Technologies ( www.hcltech.com ) and• HCL Infosystems (www.hclinfosystems.com)

The 3 decade old enterprise, founded in 1976, is one of India's original IT garage start ups. Its range ofofferings span R&D and Technology Services, Enterprise and Applications Consulting, RemoteInfrastructure Management, BPO services, IT Hardware, Systems Integration and Distribution ofTechnology and Telecom products in India.

The HCL team comprises 77,000 professionals of diverse nationalities, operating across 29 countriesincluding 500 points of presence in India. HCL has global partnerships with several leading Fortune 1000firms, including several IT and Technology majors.

Employees77,000

Financials

Operations spanning 29 countries

Global Presence

USA, UK, Finland, Poland, Puerto Rico, Brazil, China,

Malaysia, Singapore, Australia, Czech and India

Delivery Facilities

HCL - Snapshot

Offices in 170 cities,500 points of presence reaching

4,000 towns

India Presence

93,000 outlets in over11,000 towns

Distribution Network

Total Revenues - $ 5.5 Bn

EBITDA - $ 630 Mn

HCL Technologies

Global Market Focus

HCL Infosystems

Indian Market Focus

Hardware, System Integration, Networking Solutions, Managed ISP Services, Homeland Security & ICT

Distribution

Product Engineering & R&D, Enterprise & Custom Applications, Enterprise

Transformation Services Infrastructure Management, & BPO Services

About HCL Technologies

While HCL Enterprise has a 30-year history, HCL Technologies is a relatively young

company formed, 12 years ago, in 1998. During this period, HCL has built unique strengths

in IT applications (custom applications for industry solutions and package implementation),

IT infrastructure management and business process outsourcing, while maintaining and

extending its leadership in product engineering. HCL has also built domain depth through a

micro-verticalization strategy in industries such as Financial Services, Hi-tech and

Manufacturing, Retail, Media and Entertainment, Life Sciences,

And Telecom.

HCL has created the ability to distribute value across the customer's IT landscape through

its well-distributed services portfolio, significant domain strengths, and locally relevant

geographic distribution. HCL has the widest service portfolio among Indian IT service

providers, with each of its services having attained critical mass.

About HCL Technologies

Today HCL’s new way of doing business is being recognized by Harvard, IDC, Fortune, Forbes,Economist, Business Week and the likes HCL Technologies is a leading global IT services company,working with clients in the areas that impact and redefine the core of their businesses.

Since its inception into the global landscape after its IPO in 1999, HCL focuses on 'transformationaloutsourcing', underlined by innovation and value creation, and offers integrated portfolio of servicesincluding software-led IT solutions, remote infrastructure management, engineering and R&D servicesand BPO.

HCL leverages its extensive global offshore infrastructure and network of offices in 29 countries toprovide holistic, multi-service delivery in key industry verticals including Financial Services,Manufacturing, Consumer Services, Public Services and Health care.

HCL takes pride in its philosophy of ‘Employee First’ which empowers our transformers to create areal value for the customers.

History of HCL

The initial years 01• Developed the first indigenous micro-computer at the same time as Apple and 3 years before

IBM's PC – in 1978. This micro-computer virtually gave birth to the Indian computer industry.

• HCL's in-depth knowledge of Unix led to the development of a fine grained multi-processor Unix in 1988, three years ahead of Sun and HP.

The Growth Phase 02• Along with the swiftly growing software technology industry, HCL, which was hitherto known as

the pioneer in modern computing made the advent into software development.

• HCL's R&D was spun off as HCL Technologies in 1997 to mark their advent into the software services arena.

The World Phase 03• Today, HCL sells more PCs in India than any other brand, runs Northern Ireland's largest BPO

operation, and manages the network for Asia's largest stock exchange network apart from designing zero visibility landing systems to land the world's most popular airplane. And this it does across 26 countries and across 360 service locations in India.

• Please visit http://www.hcl.com/history-milestones.asp# for further details on History of HCL.

Key Milestones

1991 - HCL-HP JV develops multi-processor Unix for HP and heralds HCL’s entry into contract R&D

1994-Distribution alliances with Ericsson Switches and Nokia Cellphones

1995- HCL launches India’s first home computer - “The Beanstalk”

1997- HCL Infosystems formed - HCL’s R&D spun-off as HCL Technologies - marks advent into software services

2001- HCL Technolgies JV with Deutsche Bank- HCL Technologies acquires British Telecom’s Apollo Contact Centre in Belfast, Northern Ireland

2003- HCL Infosystems becomes first company to cross 100,000 unit milestone in the Indian Desktop PC market

2004- HCL Infosystems continues to be largest manufacturer of PC’s in India

1976- Hindustan Computers Limited (HCL) is born

1977-Distribution alliance with Toshiba for copiers and notebooks- First 4-bit microprocessor based “Scientific Computer” introduced

1978- HCL successfully ships in-house designedMicro-computer at the same time as Apple. The Indian

Computer Industry is born

1980 - HCL introduces a bit sliced, 16-bit processor based micro-computer

1983- Indigenously develops an RDBMS, a Networking OS and a Client Server architecture, at the same time as global IT peers

1986 - HCL becomes the largest IT company in India

1989- Introduces fine-grained multi-processor Unix – 3 years ahead of “Sun” and “HP”

-16-

Key Milestones

2005• - HCL Technologies signs Software Development Agreement with Boeing for the 787 Dreamliner program• - HCL Technologies enters JV with NEC, Japan• - HCL Technologies sets up first Power PC architecture design centre outside of IBM- HCL Infosystems launches sub Rs.10,000 PC- HCL integrates all group employees under @hcl.in domain

2006• - HCL Infosystems ties up with Apple for iPod distribution• - HCL Technologies signs largest ever software services deal with DSG

2007- HCL Technologies announces opening of its second European outsourcing facility in Krakow, Poland- HCL Infosystems commences production in ISO 14001 and ISO 9001:2000 certified second manufacturing facility in Rudrapur, Uttaranchal• - HCL Infosystems wins CNBC Awaaz consumer award for personal computers• - HCL BPO is world’s first BPO to get PCMM certified- HCL Technologies launches first Technology Hub in NOIDA

2008• - HCL as an Enterprise touches the $5 billion watermark• - HCL Infosystems introduces Safe State offering System Integration solutions for security & surveillance• - HCL Technologies’ “Employee First” policy becomes case study at Harvard• - HCL acquires Axon Group plc, leading UK-based SAP consulting firm - largest acquisition by an Indian IT company

2009- HCL Technolgies wins FT Arcelor Mittal Boldness in Business Award - HCL Technologies awarded ‘Golden Peacock Eco-Innovation Award’ for its Green Datacenter Service - HCL AXON awarded 2009 SAP® Pinnacle Award- HCL Technologies Named a Leader Among North American SOA Systems Integrators by Forrester Research

HCL DNA

The TIME magazine has referred to HCL as an "intellectual clean room “ where its employees could

imagine endless possibilities. The fact is, over the last thirty years that HCL has been operational, the

company has stood by its values and core philosophy.

Fueled by the entrepreneurial zeal of its founders, HCL developed the first indigenous micro-computer

in 1978, at the same time as Apple. Since then, HCL has had a 3 decade rich history of inventions and

innovations.

Intrapreneur is the term that best describes the HCL employees. Ever since HCL entered into an

alliance in 1970s, partnerships and HCL have been inseparable. Bonds have been forged with

partners to co - create value. Strong inorganic growth is a testimony to the spirit of partnerships.

This entrepreneurial and win-win relationship driven culture continues to guide HCL in all its

endeavors.

The Leadership Team

Shiv NadarFounder – HCL, and Chairman & Chief Strategy Officer- HCL Technologies

At a time when India had a total of 250 computers, Shiv Nadar led a young team which passionatelybelieved in and bet on the growth of the IT industry. That vision in 1976, born out of a Delhi "barsaati"(akin to a garage start up), has resulted 3 decades later in creating a $ 5 billion global Enterprise.

From designing India's first PC at the same time as global IT peers in 1978; to working on the BoeingDream liner's Flight Management Systems today, HCL has stayed a true Pioneer of ModernComputing. HCL now employs over 60,000 professionals, with a global presence in 29 countries and apan India presence across 500 locations.

HCL's business spans IT Hardware manufacturing & distribution, System Integration, Technology &Software Services, Business Process Outsourcing, and Infrastructure Management.

Acknowledged as a visionary by the IT industry and his peers, Shiv Nadar has often made daring

forays based on his conviction of the future. At a time when hardware was the name of the game,

Nadar foresaw the huge potential in the area of IT education & learning from which NIIT was born.

Albeit a more recent entrant in the software services space, since its listing in 2000, HCL is already

among top Indian IT software majors and a force to reckon with for global technology giants.

Shiv Nadar firmly believes that, "If you want to empower people, give them the tools. There's enough

entrepreneurship in this country to take care of the rest." He is quick to grasp new opportunities, select

a team to transform his ideas into reality and delegate the project to competent professionals.

The Leadership Team

In January 2005 Shiv Nadar received the CNBC Business Excellence award from the Prime Minister

of India. In February 2005 he was listed by "India Today" in the Power List of India's leaders from all

walks of life, for building a global IT Enterprise from scratch in 3 decades, creating valuable JVs with

marquee partners such as Deutsche Bank, and creating jobs in Belfast when India was being criticized

for just the opposite.

More recently, Shiv Nadar received the Ernst & Young Entrepreneur of the Year Award 2007 in the

'Services' category for being "a doyen of the Indian IT industry and perhaps its chief architect".

The University of Madras awarded him an Honorary Doctorate Degree in Science in November 2007,

for his contribution to not just the IT industry in India, but also for his "transformation of technological

culture globally".

The Leadership Team

Shiv Nadar has been conferred the Padma Bhushan Award - the third highest civilian honorconferred by the President of India - in January 2008, in recognition of not just his contribution to trade& industry in India but also his deep commitment to public good. In February 2009, Forbes Magazinefeatured him in its list of 48 Heroes of Philanthropy in the Asia Pacific region.

He founded the not-for-profit SSN College of Engineering in Chennai, which is today among the topten private engineering colleges in India. Shiv Nadar is also building "Vidya Gyan" public schools inUttar Pradesh that will provide free, world class education to rural children from economicallydisadvantaged backgrounds. His belief is that quality education to a select few will take the positiveimpact of education to where it can truly uplift & transform lives and help narrow the socio-economicdivide. He is an active member of the Executive Board of the Indian School of Business (ISB),Hyderabad. Concerned with the public health issues in India, Shiv Nadar is involved with the PublicHealth Foundation of India (PHFI) - working to establish standards in public health education and tocreate a network of innovative world class India-relevant institutes of public health. He also supportsinitiatives for the girl child and the empowerment of women.

The Leadership Team

Vineet Nayar CEO – HCL Technologies

Vineet Nayar is the CEO of the $5.3 billion HCL Technologies Ltd, leading a team of 71,000professionals in 29 countries to drive growth in IT Services industry.He also serves on the board of the company as a whole time Director. Vineet has instituted severalradical programs that began a quiet transformation across the organization.

His mantra of "Employee First" and a strong belief in value-based leadership has been recognizedglobally. Fortune Magazine has articulated his leadership style as "The World’s Most ModernManagement" and the London Business School calls him "the Leader of organizationalInnovation".

The Harvard Business School (HBS) has written a case study on the Transformation at HCL, based on his innovative and radical leadership. The case study is being taught in the Strategy and Leadership classes at HBS.

The Leadership Team

With his strong strategic vision and truly global outlook, Vineet has charted a defining growth path forHCL Technologies, and in a short time span, catapulted the organization to being the fastest growingcompanies in the Indian IT landscape.

Under his leadership, HCL Technologies has made it to the fastest growing "Business Week Top 100Tech companies" (2007). IDC recognizes Vineet as having "the most cohesive and articulate vision" inthe IT services sector).

Starting his career with HCL as a senior management trainee in 1985, Vineet has held leadershippositions in sales and strategic marketing, and was the CEO of the infrastructure business before hetook on his present role. An engineer, Vineet also holds a masters’ degree in Business Administration.

The Leadership Team

HCL Brand Story: Evolution of the Brand

The HCL Global branding initiatives was conceptualized in Jan 05 with an objective to unify the global enterprise and connect with all stakeholders. Done in three phases, the brand communication took a single thread (that of HCL being in the leading edge of technology), while expressed it in different ways.

PHASE 1: FEARless

Campaign- April 2005

PHASE 2: Talking Numbers

Campaign-January 2006

PHASE 3: Touch Technology

Campaign-April 2007

FEARless CAMPAIGN:

The 'Fearless' was a print-led TV campaign, which brought out the core HCL values of Guts, Courage and Passion. The campaign also spoke about the size and width of the enterprise, while introducing the HCL Heritage and stature.

HCL Brand Story: Evolution of the Brand

TALKING NUMBERS CAMPAIGN:0 and 1, the binary digits were taken as HCL's brand ambassadors. The story they weave around thedifferent areas of expertise that HCL has is the crux of the campaign. The campaign, initiated in Jan05 went on till March 06 and explained the multifaceted technology width of HCL. The campaignhelped in sustaining and continuing the brand stature of the company.

TOUCH TECHNOLOGY CAMPAIGN:The brief was simple - show the reach and importance of our technology in everyday life. The hardpart was making it brief, 60 seconds to be precise. Then, suddenly, a light bulb sparked to life.

The idea was to see the world from the eyes of a common man, someone who isn’t completely awareof our presence. But as the film unfolds, he finds out that we are almost everywhere, and that many ofthe things that he took for granted are in fact powered by our technology. In order to initiate thisprocess and give the brand a face, a protagonist was introduced - the HCL employee. And thus the adbecomes a chance encounter of two people from different ends of the same spectrum. It’s the story of- The Hitchhiker. And the campaign became the "Technology that touches lives."

Corporate Governance at HCL

HCL Technologies continues to focus on good Corporate Governance, in line with localand global standards. Its primary objective is to create and adhere to a corporate cultureof conscience and consciousness, integrity, transparency and accountability for efficientand ethical conduct of business for meeting its obligations towards shareholders andother stakeholders.

The HCL Corporate governance practices have matured over the 32 years of theEnterprise; and are in compliance with the requirement of the revised guidelines oncorporate governance stipulated in Clause 49 of the Listing Agreement with the StockExchanges.

Corporate Governance is an integral part of the philosophy of HCL Technologies in itspursuit of excellence, growth and value creation. In addition to complying with thestatutory requirements, effective governance systems and practices towards improvingtransparency, disclosures, internal controls and promotion of ethics at work place havebeen institutionalized. HCL Technologies recognizes that good governance is acontinuing exercise and reiterates its commitment to pursue highest standards ofCorporate Governance in the overall interest of all its stakeholders

HCL Technologies Corporate Governance- A Snapshot

Certified by Big-4 Global Auditing Firm Corporate Governance StructureFinancials - US GAAP 6 of the 8 directors are independent non-executive directors

Financials - Indian GAAP The Board has four committees viz. •Audit Committee,•Compensation Committee,•Shareholders' Committee and•Employees Stock Options Allotment Committee

Corporate Governance under Clause 49 of Listing Agreement with Indian Stock Exchanges. Corporate Governance Report includes the following sections:

•Board Committees•Board Composition•Board Functioning and Procedures•Management Review & Responsibility•Shareholders Information•Certifications

All members of Audit Committee are Independent Directors.

Internal Audit Function is independent and reports to Audit Committee.

External Audit is done by Big-4 Global Auditing firm

In spite of being an Indian listed Company, voluntary Audit under US GAAP for better understanding of financials by global stakeholders

HCL ANTHEM

The HCL Anthem is a song that portrays the journey of HCL across the 30 years. The

song talks about the challenges of the early days, the joys of success and the youthful

vigour to handle the future. A very powerful, catchy tune has been created (by Daniel

George, who is a young and upcoming music director and has done the background

score for movies like Parineeta, Saher and HazaaronKhwaishein Aisi). The Anthem

endeavors to bring alive the youthfulness and spirit of adventure of HCL.

HCL CAREER DEVELOPMENT CENTERS

After creating a new wave with computing in India - at a time when there were only about 250

computers in the country as a whole, HCL ventured into creating Career development centers – the

first of its kind in India. The objective was to have a constant pool of qualified professionals for the

industry.

Today , the career development centers span India - wide with over 12000 students. The focus has

been on industry-experience and focus on 'real world' practical training. The faculty is drawn from HCL

and the industry . The areas of focus include both hardware and software - starting from basics in

hardware and networking to server related and security.

31

EFCS- What we stand for

HCL’s Cycle of Transformation

Engaged employees

1

Satisfied customers

2

CompetitiveShare Gain

3

Operating Efficiencies

4

New Initiatives

5

Great place to work

6 Employee First

33

A Unique Approach to Management –Employees First, Customers Second

Maximum value is created at the Employee-Customer Interface. This is called the Value Zone

The aim of Employees First is to achieve a “wow” at this interface by inverting the management pyramid and increasing accountability to the value zone

The Employee becomes the owner of the change and in turn strives to deliver the best to his/ her customer

The Value Zone

Reverse Accountability

Customer

Employee

Enabling Function

Management

Maximizing the wow in the value zone

The 4 tenets of Employees First

Few Employees First Initiatives @HCL

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