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A SUMMER TRAINING REPORT ON “PROMOTIONAL ACTIVITES OF HCL INFOSYSTEMS FOR CORPORATES, INSTITUTIONS & END USER” Submitted in partial fulfillment for the award of Master of Business Administration (Annamalai University, Chennai) 2008-2010 Under The Guidance MR. AMIT KUMAR Regional Sales Manager Submitted By DEEPAK VAISHNAV MBA-1 ST YEAR ENROLMENT NO. 4740800300
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A

SUMMER TRAINING REPORT

ON

“PROMOTIONAL ACTIVITES OF HCL INFOSYSTEMS FOR

CORPORATES, INSTITUTIONS & END USER”

Submitted in partial fulfillment for the award of Master of Business Administration(Annamalai University, Chennai)

2008-2010

Under The Guidance

MR. AMIT KUMARRegional Sales Manager

Submitted By

DEEPAK VAISHNAVMBA-1ST YEAR

ENROLMENT NO. 4740800300

THE NIS ACADEMY, AJMER (RAJ.)(Affiliated To Annamalai University)

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PREFACE

In today’s customer centered market consumers have more choice

because of their different habit’s attitudes, opinions, perception, personality etc.

and therefore, they have really become choosy. Their buying behavior constantly

undergoes modification, consumers are the king or god in the market, so it is

important to know the buying decision of consumers and why they buy one

particular product when other is equally attractive.

This project report has been prepared to satisfy dual purpose. The market

survey done will at us know the consumer habits, buying criteria, Inspiration rate,

time period, frequency rate, place, effect of an advertising and sales promotion of

HCL and secondary data will give us an inside into Newspaper and trends of last

few year.

Finally, this summer training was really good learning process for me and

it gave me an opportunity to compare the theoretical knowledge gain with the

practical aspects and difficulties that come across in real life.

This project is fulfillment of course curriculum of MBA Programme set by

AICTE, as each student has to undergo for Summer Training Project. The report

has been prepared for submission to HCL Info systems and Amity Business

School Noida under summer training programme. This project is presented in

systematic manner. It contains the information related to company’s profile and

sales promotion of HCL thin clients than research methodology, analytical part,

findings suggestion, recommendation and conclusion is given at the end. The

bibliography and appendix also given for know more about the sample and other

information related to IT markets. I hope that these will serve the purpose.

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Acknowledgment

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I sincerely thank to my Internal Guide Ms. Surbhi Sharma, Faculty, NIS

Academy, Ajmer for providing me an opportunity to work as a summer trainee

with HCL INFOSYSTEMS LTD. The training was part of my course curriculum

and it has brought immense changes in my overall personality.

I want to thank to Mr. Amit Kumar (Regional Sales Manager, HCL

INFOSYSTEMS LTD.), my supervisor, for his valuable advice and kind support,

without which I would not be able to complete this project successfully. Mr. Amit

Kumar motivated me at every step of my training and clears all my conflicts by

stealing time from his own busy schedule.

Deepak Vaishnav

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TABLE OF CONTENTS

Company profile

Vision & Mission

Alliances

Quality

Achievement

Product Description

Research Methodology

Problem

Objective

Sample & Sample Size

Data Collection

Data Analysis

Time Schedule

Procedure

S W O T Analysis

Result & Discussion

Conclusion

Limitation

Recommendation

Bibliography

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EXECUTIVE SUMMERY

Introduction

The report involves the Company profile, Promotional and Marketing

Strategy of HCL INFOSYSTEMS LTD.

At the end of report information related to Indian Information Technology

Industry and HCL‘s secret of success as well as Photograph of HCL are given.

Study Related

An overview of retailing business and HCL’s entry into retailing.

The main objective behind the study was find out different routs for

increase sales volume and viability of the retailing.

For the study of research design used as exploratory, descriptive and

casual research designs.

For collection of the primary data observation method and questionnaire

method used.

The instrument used for market research is structured and directs the

observation as well as questionnaire method and in that structure-non-disguised

method also used.

The sampling units are HPM’s people; customers are used and sample

size 150 units by stratified random sampling method. For obtaining nearest

accurate results as well as keeping in mind as money, time and human

constraints.

The strata made according to the dealer-wise and list of people cross the

shop collected through observation method for deciding sample size.

For know about what can I observe from dealer. I visited all dealers first

time as customer and pilot study for checking out validity of my questionnaire and

than the questionnaire is finalized.

The Scope of the study is limited to Ghaziabad City only and time duration

of research was from 1st may to 28 June.

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The main finding of bathe study is non-availability of the product due to no

supply of product from factory side.

Finding, suggestion and recommendation are based on the inferences and

analysis of tabulated data on opinion stated by respondents and my observation

at HCL Distributors.

The SWOT analysis is marketing point of view, conclusion based on report

and essay is based on What I learned from my summer training whereas the

bibliography with the help of reference books, websites etc. Given at end.

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MARKETING STRATEGY

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“Marketing Strategy is nothing but a combination of decision bearing on a

various aspect of marketing mix element.” There are Product, Price, Place,

Promotion and Packaging. HCL concentrate on all aspects that’s why HCL has

very good market not only in Ghaziabad but also other region in India.

1. For product planning:

[a] HCL take decision their existing product along with future products.

This is the continuous process, which is done by top management of HCL.

[b] Then they research the product by research department.

Research & Development Department

2. Management Information System

In this step they collect the details about competitor’s product. They saw

the pricing, features, quality, Advertisement, Packaging, and Promotion of those

particular products.

Market SegmentationWe know that market segmentation means dividing market into

distinct group of buyers with deferent needs charecterstatictis or behavior. Who

might require separate product or marketing mixes?

It refers to large heterogeneous market in to with smaller

Product Research

Technical Research

Survey

Potential isThere or not

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homogeneous parts in order to select any one out than in which the company

thinks it can satisfy customer more effectively different product for different

segmentation. There are different classes people are living HCL, like....

1. Lower middle class

2. Middle class family

3. Upper middle class family

4. Higher class family

For larger the target is fulfill by the help of advertisement and Promotional

Events.

PRICING POLICIES

Price refers to the value of product attributes. Expressed in monetary

According to their classes they launch the New Product

New Product launch

Survey {they survey that which class will purchase the product}

MIS Department Survey

Decision

Segmentation

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terms with a customer plays or is accepted or affords utility. Value is referring to

the quantitative aspect product relative to other product. In HCL, pricing policies

of work like as under

1.Managment Information System

First MIS show the price of competitors.

2.Parallel pricing policy

Bundal, marketing

Profit margin

They give to Channel Partner/demo center 6-8%, and company gets X% profit.

HCL’s main objective is service rather then profit. No doubt there is profit but

pricing policy just to meet minimum margin for getting competitive advantage

against assembler’s market.

Company wants to maximize its profit than unit establishes higher policy

its organization wants to cover the large part of the market than obligation may

establish legible profit policy. “HCL believes in wealth maximization rather

than profit maximization.”

Sales PromotionWe know those sales promotion short-term incentives to encourage

purchase or sales of product and services. Sales promotion includes

Consumer Promotion

Trade Promotion

Sales Force Promotion

Sales promotion refers to all efforts made by the firm to promote the sales

of products.

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In HCL for sales promotion gave special offer

To end-users

To institution

To corporate houses

Total promotional expenses

(3% of sales)

Advertising

(2% of sales) Sales Promotion

(1% of sales)

Press T.V. Radio out Door

30% 35% 10% 25%

Among all tools of promotion advertisement is given prime

importance by HCL. That can be seen from the above chart that more stress put

on the Television Press and Outdoor media of advertisement.

View on Trade policy of 2005(Information Technology)

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Investment Policy

Automatic approval for foreign equity in software and almost all areas of

electronics.

Automatic approval accorded for foreign technology agreements in all

areas of electronics except aerospace and defence, subject to specified

conditions.

100% foreign investment permitted in units set up exclusively for exports.

Such units can be set up under any one of the following schemes; EHTPs, STPs,

Free Trade Zones/EPZs, and 100% EOUs.

Opportunities

According to a recent World Bank study, India is the preferred location for

software vendors for its quality and cost. India has strong Unix base, which

provides opportunity for the development of products for Internet based

applications. Further, India has global connectivity with international dialing

facility from over 13220 locations; Leased/switched high-speed data links from

major centres through STPs and VSNL for point-to-point communication are also

available. Internet connectivity is provided through several networks. Abundant

investment opportunities exist in the following thrust areas in India:

Communication Infrastructure

Optic Fiber Cable

Gateways

Satellite based Communication Wireless

Software Development

IT-enables Services

IT Education (100,000 post graduate professionals in IT required annually by

2004)

IT-enabled education

Data Centres & Server Farms

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COMPANY COMPANY PROFILEPROFILE

COMPANY COMPANY PROFILEPROFILE

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COMPANY PROFILE

HCL Infosystems Ltd is one of the pioneers in the Indian IT market, with its

origins in 1976. For over quarter of a century, we have developed and

implemented solutions for multiple market segments, across a range of

technologies in India. We have been in the forefront in introducing new

technologies and solutions.

HCL Infosystems ( HCLI) draws it's strength from 27 years of experience

in handling the ever-changing IT scenario, strong customer relationships, ability

to provide the cutting edge technology at best-value-for-money and on top of it,

an excellent service & support infrastructure.

Today HCL is country's premier information enabling company. It offers one-stop-

shop convenience to its diverse customers having an

Equally diverse set of requirements. Be it a large multi-location enterprise,

or a small/medium enterprise, or a small office or a home, HCLI has a product

range, sales & support capability to service the needs of the customer.

Last 27 years apart from knowledge & experience have also given us continuity

in relationship with the customers, thereby increasing the customer confidence in

us.

Our strengths can be summarized as:

- Ability to understand customer's business and offer right technology

- Long standing relationship with customers

- Pan India support & service infrastructure

- Best-vale-for-money offerings

Technology Leadership

HCL Infosystems is known to be the harbinger of technology in the

country. Right from our inception we have attempted to pioneer the technology

introductions in the country either through our R&D or through partnerships with

the world technology leaders.

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Using our own R&D we have

- Created our own UNIX & RDBMS capability (in 80s)

- developed firewalls for enterprise & personal system security

- launched our own range of enterprise storage products

- launched our own range of networking products

We strive to understand the technology from the view of supporting it post

installation as well. This is one of the key ingredients that go into our strategic

advantage.

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COMPANY GUIDING PRINCIPLES

VISION AND MISSION

VISION STATEMENT

"Together we create the enterprises of tomorrow"

MISSION STATEMENT

"To provide world-class information technology solutions and services to

enable our customers to serve their customers better"

QUALITY POLICY

"We deliver defect-free products, services and solutions to meet the

requirements of our external and internal customers, the first time, every time"

OUR OBJECTIVES

OUR MANAGEMENT OBJECTIVES

To fuel initiative and foster activity by allowing individuals freedom of

action and innovation in attaining defined objectives.

OUR PEOPLE OBJECTIVES

To help people in HCL Infosystems Ltd. share in the company's

successes, which they make possible; to provide job security based on their

performance; to recognize their individual achievements; and help them gain a

sense of satisfaction and accomplishment from their work.

CORE VALUES

We shall uphold the dignity of the individual

We shall honor all commitments

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We shall be committed to Quality, Innovation and Growth in every

endeavor

We shall be responsible corporate citizens

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COMPANY QUALITY

Philosophy Quality

"We deliver defect-free products, services and solutions to meet the

requirements of our external and internal customers, the first time, every time.”

To exist as a market leader in a globally competitive marketplace, organizations

need to adopt and implement a continuous improvement-based quality policy.

One of the key elements o HCL's success is its never-ending pursuit of superior

quality in all its endeavors. HCL NFOSYSTEMS believes in the Total Quality

Management philosophy s a means for continuous improvement, total employee

participation in quality improvement and customer satisfaction. Its concept of

quality addresses people, processes and products. Over the last 0 years, we

have adapted to newer and better Quality standards that helped us effectively i.e.

Quality with Business Goals, leading to customer and employee satisfaction.

QUALITY AT HCL INFOSYSTEMS

The history of structured quality implementation in HCL

Infosystems began in the late 980s with the focus on improving quality of its

products by using basis QC tools and failure Reporting and Corrective Active

Systems (FRACAS). We also employed concurrent engineering practices

including design reviews, and rigorous reliability tests to uncover latent design

defects. In the early 90s, the focus was not merely on the quality of

products but also the process quality systems. Our manufacturing unit at NOIDA

was certified initially to ISO 9002:1994 by BVQI in 1994 and later on to ISO

9001:1994 in 1997. As of own, all our manufacturing units are certified by BVQI

as per ISO 9001:2000 In early 995, major quality initiative was launched across

the company based on Philip B. Crosby's methodology of QIPM (Quality

Improvement Process Management). This model was elected to because it

considered the need and commitment by an organization to improve but more

importantly, the individual's need towards better quality in his personal life. Under

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our Quality Education System program, we train our employees on the basic

concepts and tools of quality. Our employees have undertaken a number of

improvement projects, where by process deficiencies and bottlenecks are

identified, and Corrective Action Projects (CAPs) are undertaken. This reduces

defect rates and proves cycle times in various processes, including personal

quality. We have received MAIT's Level II recognition for Business Excellence'

for our initiatives in the Information Technology Industry, adding another

commendation to our fold. MAIT's Level II recognition based on the 'European

Foundation for Quality Management' (EFQM), for aiming quality leadership and

business competitiveness. Our certifications / awards in 2003 include ISO 9001-

2000 by BVQI for our Info Structure services and award of First Prize by ELCINA

(Electronic Component Industries associations) for Quality, 2002-03. The

ELCINA award criterion considers two aspects. (1) Nobler (Leadership &

Management commitments, Resource Management, Product realizations,

Measurement Analysis & Improvement) and Results (Product Quality,

customers / Stake holder satisfaction, Business results). The tryst for continuous

quality improvement is never-ending in HCL Infosystems. We always strive to

maintain high quality standards, which help us fulfill our mission to provide world-

class information technology solutions and services, to enable our customers to

nerve, their customers better.

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Alliances & Partnerships

To provide world-class solutions and services to all our customers, we

have formed Alliances and Partnerships with leading IT companies worldwide.

HCL Infosystems has alliances with global technology leaders like Intel,

AMD, Toshiba, Ericsson, Microsoft, Nokia and Sun Microsystems, SAP, Scan

soft, SCO, EMC, Veritas, Citrix, CISCO, Oracle, Computer Associates, Red Hat,

Infocus, Duplo, Samsung, Novell.

These alliances on one hand give us access to best technology &

products as well enhancing our understanding of the latest in technology. On the

other hand they enhance our product portfolio, and enable us to be one stop

shop for our customers.

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ACHIVEMENT

AchievementAchievement

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1976: - Foundation of the Company laid– Introduces microcomputer based

programmable calculators with wide acceptance in the scientific education

community

1977: - Launch of the first microcomputer-based commercial computer

with a ROM –based Basic interpreter - Unavailability of programming skills with

customer’s results in HCL developing bespoke applications for their customers

1978: - Initiation of application development in diverse segments such as

textiles, sugar, paper, cement, transports

1980: - Formation of Far East Computers Ltd., a pioneer in the Singapore

IT markets, for SI (System Integration) solutions

1981: - Software Export Division formed at Chennai to support the

bespoke application development needs of Singapore

1983: - HCL launches an aggressive advertisement campaign with the

theme ' even a typist can operate' to make the usage of computers popular in the

SME (Small & Medium Enterprises) segment. This proposition involved menu-

based applications for the first time, to increase ease of operations. The

response to the advertisement was phenomenal.

- HCL develops special program generators to speed up the

development of applications

1985: - Bank trade unions allow computerization in banks. However, a

computer can only run one application such as Savings Bank, Current account,

and Loans etc.

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- HCL sets up core team to develop the required software – ALPM

(Advanced Ledger Posting Machines). The team uses reusable code to reduce

development efforts and produce more reliable code. ALPM becomes the largest

selling software product in Indian banks- HCL designs and launches Unix- based

computers and IBM PC clones

- HCL promotes 3rd party PC applications nationally

1986: - Zonal offices of banks and general insurance companies adopt

computerization

- Purchase specifications demand the availability of RDBMS products on

the supplied solution (Unify, Oracle). HCL arranges for such products to be

ported to its platform.

- HCL assists customers to migrate from flat-file based systems to

RDBMS

1991: - HCL enters into a joint venture with Hewlett Packard

- HP assists HCL to introduce new services: Systems Integration, IT

consulting, packaged support services (basic line, team line)

- HCL establishes a Response Centre for HP products, which is

connected to the HP Response Centre in Singapore.

- There is a vertical segment focus on Telecom, Manufacturing and

Financial Services

1994: - HCL acquires and executes the first offshore project from IBM

Thailand

- HCL sets up core group to define software development

methodologies

1995: - Starts execution of Information System planning projects

- Execution projects for Germany and Australia

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- Begins Help desk services

1996: - Sets up the STP (Software Technology Park) at Chennai to

execute software projects for international customers

- Becomes national integration partner for SAP

1997: - Kolkata and Noida STPs set up

- HCL buys back HP stake in HCL Hewlett Packard

1998: - Chennai and Coimbatore development facilities get ISO 9001

certification

1999: - Acquires and sets up fully owned subsidiaries in USA and UK

- Sets up fully owned subsidiary in Australia

- HCL ties up with Broad vision as an integration partner

2000: - Sets up fully owned subsidiary in Australia

- Chennai and Coimbatore development facilities get SEI Level 4

- Certification

- Bags Award for Top PC Vendor In India

- Becomes the 1st IT Company to be recommended for latest version of

ISO 9001: 2000

- Bags MAIT's Award for Business Excellence

- Rated as No. 1 IT Group in India

2001: - Launched Pentium IV PCs at below Rs 40,000 IDC rated

- HCL Infosystems as No. 1 Desktop PC Company of 2001

2002: - Declared as Top PC Vendor by Dataquest

- HCL Infosystems & Sun Microsystems enters into a Enterprise

Distribution Agreement

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- Realigns businesses, increasing focus on domestic IT,

Communications & Imaging products, solutions & related services

2003: - Became the first vendor to register sales of 50,000 PCs in a

quarter

- First Indian company to be numero uno in the commercial PC market

- Enters into partnership with AMD

- Launched Home PC for Rs 19,999

- HCL Infosystems' Info Structure Services Division received ISO

9001:2000 certification

- Launches Infiniti Mobile Desktops on Intel Platform

- Launched Infiniti PCs, Workstations & Servers on AMD platform

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Other Key Player’s in the Industry

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Zenith Computers Ltd.

Zenith was marginally behind HCl in the home segment with the

unit market share of 9.1% as compare to HCL’s 9.8%. Zenith has always sold on

he platform of price its tag line “MNC Quality Indian Prices” targets buyer who are

price sensitive but are looking for a reliable branded PC. Thus it is operating in

the narrow price band between assemble PC’s and lower-end brand.

Zenith manages to keep its prices low by controlling overhead and

manufacturing cost and having a short-term purchase plan for components,

which gives it more flexibilities and better rates.

It has constantly generated interest of trade through innovative offering

like P4 multimedia PC price below 25,000 and which basically a T.V. cum PC

with Internet connection. It has 4,000 dealers above 30% are in class B & class C

cities giving it the reach requirement to generate volume from lower meddle

segment of customers.

In 1993, Vectra was the first foreign pc to be marketed in India.

How ever its J.V. with HCL run into trouble and HP reentered in the Indian PC

market in early 1998. By that time, IBM and Compaq had entered and

established their brands at the premium end. HP immediately made a dent in to

the market through its attractive précised PC’s bundled with peripherals.

Since than, HP and Compaq have been engaged in a relentless

price war too woo the homebuyer. According to IDC, HP, and moved up to the

No. 2 brand behind the HCL in the quarter of 2004.

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HP has an assembling facility in Banglore with a capacity of to

assemble 30,000 PC’s in a month. It has a retail presence in 60 cities through

135 stores.

The world largest seller of PC’s entered India in 1994. Initially the

commercial segment (largest corporation, Govt., educational, and research

Institute ions) was its main target segment. But with recession in the economy in

mid 1990s and the consequent slashing of IT budgets of corporate, it turned its

attention to the home segment. However, it soon realized that its PC’s although

perceived well on reliability and quality, were considered to expensive. The

assemblers and Indian brands were cornering a major chunk of the market.

It slashed prices of its sub brand Presario from Rs.65000 to Rs. 50,000to

penetrate into price conscious India households.

At. The same time, Compaq is aggressively going after corporate segment

by offering arrange of products tailored around services to meet specific needs.

Its merger with digital equipment further strengthened its position in the high-end

server market.

Wipro intents to focus more on the lucrative services business in future

already services accounts for more than half of its turn over in contrast the

contribution of systems business dropped from 43% to 25% it had a joint venture

with Acer for marketing the Wipro Acer the brand of PC’s. However, they called it

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off in 1999. Wipro has 500 Strong Dealer Networks it also distributes IBM PC’s

and Sun Microsystems.

IBM reentered India through a JV with the Tatas. However the two splits in

1990 to chart separate path in 1999. IBM has concern on being a solution

provider to medium and large business unlike Compaq and HP who are

vigorously chasing the household buyer. In 2003-2004 it had a value share of

7.7% in spite of having a unit share of 4.2% this can be attributed to its high price

products. In portables, it was the second largest selling brand after Compaq. IBM

has a manufacturing base in Pondicherry, which is intent to use an export hub. It

has 240 dealers in 48 cities.

Assemblers

Having the market share of nearly 58% assemblers are the greatest

competitors of HCL. The assembler dominance can be attributed to their lower

prices as compare to the branded players. A branded PC’s will cost anything

between Rs 23,000 to 40,000 while an assembler PC’s can be with the same

configuration obtain for Rs. 17,000 to 35,000. The branded players find it difficult

to match their prices because of more manpower and overhead costs and the

duties they have to pay and components most of which are imported. It is

believed that many assemblers are able to price their PC’s low by using the

unofficial channel for imports, compromising on the quality of inputs, evading

excise duties and loading pirated software.

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Assembler’s score over branded PC’s or many others aspects too they

give choice and flexibility to the end-user in selecting the PC’s and its

components, be it processors, hard disk, monitors or multi-media kits. The user

gets to choose what is the best suited for his requirements and budget. It is

simple and inexpensive to upgrade and assemble machine, which in the case of

branded one has to pay much more, also assemblers have the advantage

interacting with their clients on personal bases, which allows them to understand

their requirement very clearly and fulfill them satisfactorily. They play the role of a

personal tutor to their customer by training them in the basics of PC’s there by

building a long term relationships infect their entire business is promoted through

word of mouth publicity and personal contacts.

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PRODUCT AND SERVICES

PRODUCT DESCRIPTION

HCL Infosystems portfolio of products covers the entire spectrum of the

information technology needs of its customers.

By virtue of the immense diversity of markets and customers that it

addresses, HCL Infosystems' product offerings include everything from high-end

enterprise level servers for mission critical applications to multimedia home

computers.

You may be a large multi-location company exploring solutions to e-

enable your organization or you may be a new born rising star looking for

someone for IT Planning or setting up your IT Infrastructure, HCL Infosystems

has a solution tailor-made for you.

DESKTOPS & NOTEBOOKS

HCL recommends Microsoft Windows® XP Professional for Business

The marketplace is constantly changing in terms of consumers,

competition and strategies to garner market share. Almost all aspects of your

business are ever evolving. The only change over the past few years is that the

pace of change has accelerated! In fact, it is increasing even as you read this.

Information Technology (IT) changes accordingly, perhaps even faster. What is

vital is that the decisions you make today need to have the capacity to address

situations for at least the next three years and the changes that are bound to

occur in that time. Infiniti is the market leader in commercial desktop segment in

India, ahead of competition. Infiniti is the only brand in Indian IT that offers you

Remote Support for Software, an innovative support mechanism that is end-user

friendly and extremely efficient in problem resolution, saving you time and

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opportunity. We, at Infiniti Product Development recognize this need as the key

to success for you, and for us. Infiniti, backed by direct selling and built-to-order,

ISO 9001 & ISO 14001 manufacturing, ensures that you get the best available

product at the time of delivery, rather than at the time of order. This Technology

First brand features the latest innovations in Central Processing Unit (CPU)

design, graphics design, display design, I/O advancement and a host of other

technologies that have made Infiniti the number one corporate PC brand in India.

Infiniti

Developed by HCL Labs specifically to meet today's high-performance

needs, HCL Infiniti Desktop provides exceptional performance, responsiveness

and reliability.

HCL Indic PC: - Enjoy computing in your own language with HCL Indic PC

- the latest from the stables of Infiniti Business Desktops.

More information

Infiniti Pro SL: - A powerful and stylish computer for the corporate world.

Infiniti Pro SL 1080 / 1085 / 1090 / 1110 Infiniti Pro SL 1200 Infiniti Pro SL 1205

Infiniti Pro BL: - Infiniti Pro BL with 845GV chipset and DDR RAM Infiniti

Pro BL with 845GE chipset and DDR RAM Infiniti Pro BL with SIS chipset and

DDR RAM Infiniti Pro BL/HL with 865GV chipset & Hyper Threading Technology.

Infiniti Pro BL/HL with 865G chipset & Hyper Threading Technology Infiniti Pro

BL/HL 1200 with 915G chipset & Hyper Threading Technology Infiniti Pro BL/HL

1205 with 915GV chipset & Hyper Threading Technology

Infiniti Plus BL: - Infiniti Plus BL with VIA PLE 133 chipset

Infiniti Orbital Series: - Packed with advanced, hi-efficiency features, the

Infiniti Orbital series is designed to meet your diverse computing requirements.

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HCL Desktop Management Software: - Manage your Infiniti desktop

efficiently with HCL Desktop Management Software (HDMS) - software that

ensures desktop uptime reduces support & administrative costs.

Home PCs

HCL recommends Microsoft® Windows® XP Professional

the all-new Beanstalk Series, where performance is rivaled only with elegance of

design. You get superior technology and great value for money, all fused into

one. It comes with the super-speed Intel® processor, plus SD RAM and Ultra

ATA Hard Disk that gives it incredible speed.

What's more, it is upgrade friendly and so virtually future-proof.

Manufactured at HCL Infosystems' state-of-the-art ISO 9001 certified plant, it is

designed to outperform every other Home Computer you have ever seen or

heard about. And with more than 250 Support providers across the country, its

widespread network ensures excellence in Customer Care. So go ahead and

enjoy the wonder that is HCL Beanstalk, and watch, it will amaze you for years to

come.

It is faster than the fastest home computer. The HCL Beanstalk comes

equipped with the lightening fast Intel® Pentium® 4 processor which means you

can now get mind blowing multimedia performance from your computer. With its

high performance processor, it brings you the Internet like no other computer

can. So get ready to experience 3D graphics, virtual reality and realistic audio-

video, like never before.

The HCL Beanstalk with Intel® Pentium® 4 processor. The centre of your

digital world is designed to meet not just your today's computing requirements,

but also the needs of your future. So bring home the HCL Beanstalk today and

stay ahead of the rest of the world.

Infiniti Powerlite Notebooks

HCL recommends Microsoft Windows® XP Professional for Business

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HCL introduces unmatched mobile power with the Infiniti Powerlite series

notebook. Designed to provide superior performance, flexible connectivity and

high mobility, these notebooks offer a new level of freedom and functionality to

bring you the ultimate in personal productivity. Add to that HCL Direct Support

Infrastructure of more than 300 service centres and 2500 engineers, Infiniti

Powrerlite offers complete peace of mind and the power to generate ideas on the

move.

Model Infiniti Notebook

Infiniti Powerlite 6000

Infiniti Powerlite 6005

WORKSTATIONS

Infiniti Challenger Workstations

SUN Workstations

STORAGE

EMC Storage Solutions

HP Storage Solutions

IMAGING SOLUTIONS AND EQUIPMENT

Toshiba Photocopiers and multifunctional products

Duplo Digital Scanner Printers

Duple Collators, Booklet makers and Finishing Equipments

Pitney Bowes mass mailing systems

Multimedia projectors

Service support

Telecom solutions and equipments

Key Telephone systems

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Web switch 2002 (IP Telephony)

EPABX for medium to large enterprises

Wireless LAN

DECT cordless

Unified Massaging

System support

MOBILE PHONES

Handsets and accessories

After sale support

Service support

Service Description

Call center services

In fracture services

Networking services

Security services

Facilities management services

Domestic hardware services

VPN services

CONSULTANCY

Infrastructure consultancy

Call center solutions consultancy

IT consultancy

SOFTWARE LICENSES

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RESEARCH METHOLOGY

PROBLEM IDENTIFICATION

The core products of HCL INFOSYSTEMS LTD. have been EZEEBEE,

BANSTALK, HCL EZEEBEE NOTEBOOK, and TOSHIBA NOTE BOOK. Thin

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clients being an institutional product can be a success if it promoted in schools &

institution MBA and Engg. Colleges, corporate house, and End-user. To carry out

the promotion requires preparing a database of schools, colleges, corporate

houses, and specific location in different part of Ghaziabad. And find out the

contact name and phone number of concerned person with who interface can be

made so that the sales volume of company can be increase through providing

the brief introduction specification and benefits of the products.

RESEARCH OBJECTIVE

To conduct a survey of various schools, Institutes, corporate houses and end

users to haven understanding o

To find out

1. How many people are using home P.C.?

2. How many are aware of the HCL products but not using?

Promotion strategy of HCL for there home PC Segment.

Finding out the major competitors of HCL home segment in this sector.

PROBLEM IDENTIFICATION

The core products of HCL INFOSYSTEMS LTD. have been EzeeBee,

Beanstalk, HCL EzeeBee notebook, and Toshiba notebook. Thin clients being an

institutional product can be a success if it promoted in schools & institution MBA

and Engg. Colleges, corporate house, and End-user. To carry out the promotion

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requires preparing a database of schools, colleges, corporate houses, and

specific location in different part of Ghaziabad. And find out the contact name

and phone number of concerned person with who interface can be made so that

the sales volume of company can be increase through providing the brief

introduction specification and benefits of the products.

IMPORTANCE OF THE STUDY

In the current era the people have lots of brand to satisfy their need. So

consumer take care for chooses of their product. The competition is also

increased by day to day. So company’s attention towards consumer requirement

is essential. Moreover, this study helps to know the buying habits of PCs of HCL

and the IT market in Ghaziabad.

It reveals the extent to which PCs. It prefers by consumer, which helps in

improvement of marketing strategy.

The consumer preference for branded PCs automatically shows the market

share of the company.

The study helps to the company for know about the most preference factor,

buying pattern of PCs, effects of sales promotion to brand loyal customer

etc.

This study provides latest and enough information to readers about consumer

habit for PCs and IT market of Ghaziabad.

Limitation of the study

Through I have tried my level best to make the study and he report writing

qualitative & excellent, the following limitation are remain overcome in the study.

Page 45: Project

HCL has a huge market national and international level, which has sold lots of

products, but this study is limited to Ghaziabad City only.

The time period allotted for the study i.e. two months is a short period for

completing this type of activities.

The accuracy of the project and conclusion is totally depending on the

accuracy of the data collected and analyzed.

This project is related to summer season-2005 only. The result not same for

all season.

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Data are collected through HCL’s channel Partner, and my observation.

1. Problem of Channel Partner/Demo Center

Criteria Very High High Moderate Low None

Rating Scale 8 6 4 2 0

S. No Problem Desktop Laptop/Note Book

1

2

3

4

5

Supply of Product

A) From Company

B) From Distributor

Time of Delivery

Packaging

Model Version

Scheme

Very High

Moderate

High

High

Very High

Very High

Moderate

Low

Low

High

Moderate

Moderate

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Comments:

From the above table and chart, it is clear that the main problem of

company is no supply or less supply of product from channel partners. Hence

company should give attention towards it. Otherwise chances are more for shift

brand of current as well as future customers.

2. Product Display And Advertisement / Poster display in

Channel Partner/Demo Center

Criteria Excellent Very Good Good Average Poor None

Rating Scale 10 8 6 4 2 0

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Sr. No. Address of Channel Partner/demo

center

Product Display Poster Display

1

2

.

3

.

4

.

5

Visual computers Vasundhra, GZB

Reliance Info Solutions Vaishali, GZB

Fortech Computers Pvt. Ltd.

Ambedkar Road, GZB

Stela Computers Sahibabad, GZB

Express Computer

Ambedkar Road, GZB

Moderate

Moderate

Very High

High

High

High

Moderate

Very High

Moderate

High

Comment:

From the above it is clear that the product display is very good at Fortech Pvt.

Ltd., and Express Computer, whereas Poster display is good at both the agency.

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3. Scheme to consumers

Criteria Very High High Moderate Low None

Rating Scale 8 6 4 2 0

Sr. No. Scheme Name Demand

1.

2.

3.

4.

Bandal Offer

Free Tour Package

Free CD Pack

Free Upgradition in RAM

Very High

Low

High

Moderate

Comment:

From the above chart reveals that Bandal Offer is very popular scheme

among the customers. This scheme also gives the sales volume to the company

because this scheme is available with all models of HCL PCs Company should

modify tour package and highlight the free upgadition in RAM.

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4. Effect of Product and Poster Display

Criteria Excellent Very Good Good Average Poor None

Rating Scale 10 8 6 4 2 0

Sr. No. Address of Channel Partner/demo

center

Product Display Poster Display

1

2

.

3

.

4

.

5

.

Visual computers Vasundhra, GZB

Reliance Info Solutions

Vaishali, GZB

Fortech Computers Pvt. Ltd.

Ambedkar Road, GZB

Stela Computers Sahibabad, GZB

Express Computer

Ambedkar Road, GZB

Average

Average

Very good

Good

Good

Good

Average

Very good

Average

Good

Comment:

The above table and chart reveals the effects of product display

and poster display in Channel Partner/Demo center. Both the displays create

more awareness of HCL products also creates more demand among customers.

5. Effects of Catalogue

Criteria Excellent Very Good Good Average Poor None

Rating Scale 10 8 6 4 2 0

Sr. No. Address of Channel Partner/demo center Effects

1 Visual computers Vasundhra, Ghaziabad Average

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2

3

.

4

.

5

.

Reliance Info Solutions Vaishali, Ghaziabad.

Fortech Computers Pvt. Ltd. Ambedkar Road,

Ghaziabad.

Stela Computers Sahibabad, Ghaziabad

Express Computer Ambedkar Road,

Ghaziabad

Average

Very good

Good

Good

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Comment

The catalogue is very effective. It is beneficial to customer as well

as company. It increases the awareness of HCL product, Product depth. Hence

demand of different product of HCL also increased.

6. Average Number of Customers/People in a Month.

Sr. No. Address of Channel

Partner/demo center

People Cross

The Road

Visited

People

Actual Buyer

1

2

.

3

.

4

.

5

Visual computers Vasundhra,

Ghaziabad.

Reliance Info Solutions

Vaishali, Ghaziabad

Fortech Computers Pvt. Ltd.

Ambedkar Road, GZB

Stela Computers Sahibabad,

Ghaziabad.

Express Computer Ambedkar

Road, Ghaziabad

25,000

40,000

70,000

15,000

70,000

250

650

3,000

350

17,00

12

17

135

22

28

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Comment:

From the above it is clear that the Show room Location is vary important

factor for self-driven sale. Because of good location of Channel Partner like

Fortech computers Pvt. Ltd. and Express Computer sales volume is vary high at

both the agencies.

7. Performance of man at Channel Partner/Demo Center

Criteria Excellent Very Good Good Average Poor None

Rating Scale 10 8 6 4 2 0

Sr. No. Address of Distributor/Agency Name of Dealer Grading

1

.

2

.

3

.

4

.

5

.

Visual computers Vasundhra, GZB

Relience Info Solutions Vaishali, GZB

Fortech Computers Pvt. Ltd.

Ambedkar Road, GZB

Stela Computers Sahibabad, GZB

Express Computer

Ambedkar Road, GZB

Mr. Abhinav

Mr. Sumit

Mr. Ajay Grower

Mr. Anand

Mr. Vinay

Good

Vary Good

Very Good

Good

Good

Comment:

The above table and chart reveals that performance at man at channel

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partner or demo center is differ. The performance very good at Fortech computer

pvt ltd and Mr. Ajay Grower is very sincere and target oriented and supportive

person, in both times during morning to evening to night. The performance of

man at agency is average in both the times at visual computers, stela computers

and Express computer during summer 2005.

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8. OVERALL PERSORMANCE OF PROMOTIONAL EVENTS

Sr.

No

Place of Event Duration

of Event

Visited

People

Currant

Buyer

Follow

up

Total

Sale

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

DABAS RESTRA

G.T Road Mohan Nagar, Ghaziabad.

BAL BHARITI PUBLIC SCHOOL Bridge

Vihar.Sahibabad, Gzbad

JAIPURIA SCHOOL, Vasundhra, Gzbad.

MODERN PUBLIC SCHOOL,

Indrapuram.Gzbad

B.L.S. Management Institute, Mohan

Nagar, Gzbad.

HINDAN AIRFOARCE STATION

Mohan nagar, Gzbad.

VASHALI MEGA EVENT Sec.4Market,

Vashali, Gzbad

SAHIBABAD MEGA EVENT,

Rajendra Nagar, sahibabad, Gzbad.

DABUR EMPLOYEE PURCHASE

PROGRAMME

Sahibabad, Site 4 Gzbad.

BEL EMPLOYEE PURCHASE

PROGRAMME, Sahibabad, GZB.

Tow

Days

4 Hours

3 Hours

3 Hours

Two

Days

Two

Days

Two

Days

Two

Days

Three

Days

Three

Days

170

67

58

49

121

88

250

167

221

400

7

9

4

6

5

6

19

11

21

48

20

25

15

19

12

17

15

18

15

22

12

15

9

11

9

10

30

13

31

67

Comment

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Above table reveals that, Promotional Events which down by HCL for

different Channel partners is gives boom to sales of their PCs in Home PC

segment. For promotional Activity Company using basically three ways.

1. Road Shows

2. Institutional Shows

3. Employee purchase progamme

Road Shows-

Now a day every company using road show varies frequently for

promoting their products. HCL also vary aggressively using this activity in

all Ghaziabad because of Road Shows Company capture the target

customer of home segment of their PCs.

In this company setup the CANOPY at roadside of different public places.

At the large-scale company arrange a MAGA EVENTS at different places

in all over Ghaziabad.

The results of MEGA EVENTS are batter than expected. MEGA EVENTS

is more result oriented then CANOPY.

Institutional Shows-

HCL Arrange the events in different Collages and School for promoting

their home PC segment. We take permission from admin department for

put our stall in their campus for particular day like in collages

Annual Meet

Culture Day

Orientation Day

Alumnae Meet

In Schools

Parents –Teacher Meeting Day

Culture Day

Annual Day

Employee Purchase Progamme-

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It is vary difficult task, which is down by HCL in different big giant

corporate houses in all over Ghaziabad. For this HCL give proposal in HR

department of Corporate Houses then management discuss on it and if

they think that their employee really gets benefit from EPP technology

they give purimessionfor organizing the event in company campus.

Themes for EPP

a) Celebration of HCL's 25th anniversary. The EPP is a way of HCL

thanking its corporate and group company employees for their support.

b) Pricing much lower than market pricing given in view of the

celebrations.

c) No Sales tax or 0% sales tax billing from Pondicherry. A27

d) Less / No Channel margin makes the prices more attractive

e) Spot finance approvals for the employees. – ICICI & Bajaj Auto

Finance ltd.

f) Portray the EPP as a value ad for the employees by the HR in the

concerned org.

g) Exchange offers can be a main theme for doing EPP in an account.

h) A lot of peripherals also get sold in the process of doing EPP; these

can be accounts where in we have sold Toshiba's, since Employees

could buy printers/web camera/Ups etc.

i) Consumer finance in 72 cities through Bajaj auto finance ltd will aid in

rolling EPP in up country locations.

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Suggesstions: -

1) Employee 4-5 winter trainees for EPP, develop a project around EPP

for them, which is a combination of Sales & mtkg.

2) These winters Trainee has to be trained by the person responsible for

EPP.

3) Once the trg is done the winter trainee will own and carry out the

following.

a) Tele-Mktg for fixing up appointment from the Databases that

we have - Toshiba, DSO/OA accounts, Misc.

b) Sending standard proposals to all HR/ADM/IT people

concerned for EPP in accounts on e-mail.

c) Take a first level call in the account, pl. do 1-2 pilots with

winter trainee to explain the process

d) Map all societies / corporate organizations in the city for more

than 50 employees for HCL to do EPP.

e) Map all consumer walk-ins places for dealers to do road

shows.

f) Maintain MIS for all EPP for the sales executive.

4) Find out competition details on EPP- Example Compaq now reinitiating

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EPP, hence s/he can get details.

5) Roll out the EPP program, winter trainee own 2-3 dealers for carrying

& rolling out EPP.

6) Provides genuine feedback, post the EPP show, about

a) EPP feedback.

b) Dealer.

c) Offers & bundles.

d) Employees in the org.

e) Misc- place, response, prospects, org, timing etc.

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MAJOR FINDINGS

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Any Research, which is conducted in the market place, flashes back

hidden truths and basic facts, which affects the business of company directly or

indirectly. These hidden truths are basic facts, which are out coming of the

research, are known as a finding. The information gathered from the market,

which are accountable in the achievement of the objective and for the company,

which makes the project more interesting, are basically known findings .The

result of assigned project in management studies is known as findings. The

findings of this project are as follows.

1. HCL is a market leader in IT products in Ghaziabad but have a vary

close competition with Compaq.

2. Most of people know that HCL only deals in desktop PC’s and servers

whereas only few knows that HCL also provides software

development, networking, internet services, facility management and

High End solution.

3. Most of people think that HCL is typically hardware firm having no

relations with software.

4. Compaq and HCL are two companies that are at top of mind in Brand

fated customers.

5. Cost and Quality are two major factors that are taken into

consideration while purchasing any IT product.

6. Technology wise means quality wise HCL is considered to be number

two after IBM.

7. Cost wise HCL is number two whereas Zenith enjoys first position.

Third rank goes into account of Wipro.

8. HCL holds number one position in after sales service that is the major

reason for it to being a market leader.

9. Corporate Image of HCL is good .It equal ant to IBM and Compaq.HCL

give vary tuff competition to both MNC companies.

10.According to customer Satisfaction Index HCL is No.1 whereas second

and third is of Compaq and IBM.

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RECOMMENDATION

Relationship

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To do any business requires a bridging between buyer and seller .so HCL

should appoint a term of dynamic marketing executive who can

established a good relationship with institutes, Schools and corporate

houses. Frequent follows ups will certainly prove fruitful for HCL in the

long run.

Brand Image

HCL has a strong brand image in the market Brand image help always

help in pushing a product into the market But in the case of Laptop and

Higher–versions it seems that HCL hasn’t made full utilization of its brand

image.

SERVICE CENTER

HCL doesn’t have service center in an institutional belt, Industrial belt like

Ghaziabad, this in many way is hampering sales of HCL product in the

reason.

DISTRIBUTION NETWORK

A strong distribution network always helps in becoming the front-runner for

any product in a market. Though HCL has a good network it has to

strengthen it to a greater extend.

ADVERTISEMENT

Advertisement in the form of road shows, pamphlets and banners in public

places, schools, collages and corporate houses organize by HCL by sales

team of western UP.

In Ghaziabad region vary potential customer is a corporate house in

Sahibabad Site 4 Area, Merrut Road Industrial Area and Bulandsehar

industrial Area.

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Conclusion

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After the comprehensive study of the secondary and primary data has

been found that HCL holds numero first position in desktop PCs.This supremacy

is due to its sound and promotes after sales services, which are also the

preference criteria for ministries to buy any IT product.

Most of the people officials associate HCL with hardware products and

vary few know that HCL also provide IT solutions and software services too.

They believe that HCL is typically a hardware firm.

Undoubtedly HCL is leader in after sales services .As well as HCL is a

leader in hardware products but to sustain its leadership and cope up with the

intensify competition it has to improve in other field too. Quality and technology

are naming few. Corporate image is good of HCL as compare to Compaq and

IBM.

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SWOT ANALYSIS FOR HCL PRODUCTS

STRENGTH

Page 67: Project

HCL is a brand in itself.

Aggressive Marketing strategy.

HCL has strong distribution network as compared to competitors.

HCL available Products can provide solution to any environment.

Customized products for every type of customer for example

up gradation as per the requirement of customer.

WEAKNESS

HCL has not been able to establish an entry barrier for competitors.

Services provided by HCL are not up to the mark.

Channel partner of HCL has not much capable to provide good and

frequent services to their potential customer.

OPPERTUNITIES

HCL products because of their price factor over other companies

and assemble are gaining popularity.

The new Technology that provided by HCL is one of the big

opportunities that HCL have.

Lower rates of different models give opportunities to HCL for grab

the assemblers market.

THREATS

Possibility of more new player’s come in the same business is

expected.

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HCL PCs is facing a big challenge from Hp and IBM in higher

segment and from Assemblers in lower segment.

HCL facing a big challenge in Laptop segments.

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BIBLIOGRAPHY

TEXT BOOK

Philip Kotler (2004) Marketing management

C.R. Kothari (2004) Research Methodology

Page 70: Project

G.C.Berry (2002) Marketing Research

WEB SITE

www.google.com

www.hcl infosystem.com

www.hclperipherals.com

www.altawista.com

MAGAZINE

Data quits

Chip

Digital India

Business India

Business today

WHAT I LEARN FROM SUMMER TRAINING

ST is so much important as it express time to do real world is. Where

things can tackle more easily by intellectual skill and presence of mind. ST is

beginning part for gaining the practical knowledge. The beginning is the most

important part of work. Once I stare, it gets easier all the time. The way to

succeed is to start sooner, work harder and know more than our competitors.

Well done are better than well said.

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Earning money is not matter in the student life, but gaining knowledge is

an important and knowledge is power. And I fain that power from my ST. At this

stage, I have completed “Promotional Strategy of HCL in Ghaziabad Region,

U.P., India that assigned me from which I have learnt.

How to identify problem, How to observe and design questionnaire for

felicitating Primary data, screen the data, selection type various methods &

procedure for conducting the research study, decide the sample size and

sampling method, conduct the survey, conduct the research report and how to

face and solve the difficulties.

From the study I understand real marketing of chemical products, how

business deals, relationship management works, theory apply in practical

marketing, analysis, convince to the customers and retailers in cut thought

competition. Analysis the primary data and also how to use Intelligence,

convincing power, tactfulness and all relationship with the Intermediates and

consumers.

I learned many things from my Summer Training like how to treat each

retailers and customers differently depending upon his/her understanding and

their relationship with company.

I also observe how distribution channel works and where lies our strengths

where do we take and take what can be done to over comings.

The main thing I learned from training is how the sales volume can

increase, decrease cost, retailers become viable, increase market share and

increase satisfaction level of consumers etc.

The most important I learned was how to push up your product when

competitors have got an edge over you in terms of Prices, scheme, benefits etc

Page 72: Project

and also how to push myself in the market to me. These work one and only one

things.

So at the last, I can say working with the true professional in prestigious organization like HCL gave me very good exposure, knowledge for real marketing. It also helps me for accomplish my career objective as to “Become Leading and Challenging manager

in Professional Management”. SUMMER TRAINING REPORT SUBMITTED TOWARDS THE

PARTIAL FULLFILLMENT OF POST GRADUATE DIPLOMA IN

MANAGEMENT

a. Key Issues Facing The Organisation

One of the major concerns for training companies is to:-

Create professionals who are better able to go in for a technology in a specific domain area.

Other than that, there are various issues that are affecting the IT training sector such as,

Lack of conviction regarding training,

Unplanned training approach,

Uncertain quality focus, and

Lengthy decision making process.

The issues which HCL CDC and IT training companies need to solve are:-

With the coming up of various new technologies, it has become a challenge for the training

institutes to offer effective, updated, latest, planned training to candidates in a shortest-possible

time. This has become a matter of market leadership and survival.

Also, with the market opening up, there is an increasing trend of employees preferring a network

deployment and software engineer’s job.

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Hence, if an enterprise’s standards of recruitment are high, it can be difficult to absorb good talent

as trainers and even more difficult to retain them.

These are some of the major and serious problems which need to be solved and looked after.

CHAPTER-6

Reflections on what has been learned during the Summer Placement

My summer training in HCL CDC has been a great learning experience. I underwent training in different

areas such as operations, sales, marketing and administration. I was mainly the member of the marketing

team and as a part of the marketing team I was given a target of making business worth Rs.50, 000 for the

month June 2009, bringing in at least 1 “walk-in” per day, making 5 registrations for the month and

conducting at least 1 workshop for the month. I successfully achieved my target during my internship in

HCL CDC.

A brief of the activities I have performed in HCL CDC are—

1. Calling students from the database given by the field marketing executives to the center, explaining to

them the training programs offered by HCL CDC and fixing their appointments with the IT Counselors

(who constitute the sales team).

2. In case the IT Counselors are busy and there is a long queue of students waiting for counseling, I did the

job of the Counselor. I was given the product knowledge before and had to apply the tactics of converting

the “walk-ins” to “admissions”.

3. Calling students to attain the work-shops organized by HCL CDC in collaboration with professionals

from Microsoft, Oracle and Red Hat who are its education partners.

4. Making follow-ups to know whether students coming to the center either to attain workshops or for

counseling will actually join the IT training programs or not.

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5. Allocating Batches to students who has joined the program in accordance to their preference timing.

6. Launching of new batches for the month of June and July, 2008 in consultation with the Chief Technical

Trainer and the Center Manager.

7. While in operations, I was actively involved in maintaining database of students who paid their monthly

installments, received books, lab cards, ID cards, etc.

CHAPTER-7

RECOMMENDATIONS TO HCL CDC

Some of the recommendations to HCL CDC are—

1. Launch of new and customized industry-relevant course targeting different customer groups with

different backgrounds so that HCL CDC don’t lack behind the market leaders—Aptech and NIIT.

2. Rapid expansion of the training centers to handle the increasing number of students.

3. CDCs should venture into other emerging areas such as retail and hospitality industry where

training of manpower is required apart from restricting itself to individual and corporate training

in the IT arena.

4. Efficient management of the CDCs so that the end- users are satisfied and more and more

customers walk into them.

5. Launch of a series of ad campaign in multiple media to make the masses aware of the brand and

the products and programs offered by it.

6. Compulsory soft skill and personality development classes for the HCL CDC students so that they

don’t lack behind in the communication front.

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CHAPTER 8

BIBLIOGRAPHY

http://www.hclinfosystems.com/news69.htm

http://www.hclinfosystems.com/news70.htm

http://news.moneycontrol.com/india/news/pressnews/indian-it-training-mkt-grows-46yoy-at-rs-2135cr-06-07/04/15/297508

http://www.equitymaster.com/detail.asp?date=2/7/2006&story=2

http://www.expresscomputeronline.com/20020325/training1.shtml

http://www.expressindia.com/news/fullstory.php?newsid=91412

http://www.cse.iitk.ac.in/~dheeraj/ideas/industry.html

http://www.thehindubusinessline.com/manager/2006/10/09/stories/2006100900771000.htm

http://www.hclcdc.in/

http://www.hclcdc.in/Common.aspx?path=1/5

www.wikipedia.com

www.hclcdc.in

. www.hclinfosystems.in

www.niit.com

www.jetking.com

www.ducat.com

www.aptech.com

CHAPTER-9

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CASE STUDY

Abstract

HCL Enterprise is a leading Global Technology and IT enterprise that comprises two

companies listed in India - HCL Technologies & HCL Infosystems. The 3-decade-old

enterprise, founded in 1976, is one of India's original IT garage startups.

Its range of offerings spans Product Engineering, Custom & Package Applications, BPO,

IT Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT

products.

The HCL team comprises approximately 55,000 professionals of diverse nationalities,

who operate from 18 countries including 360 points of presence in India. HCL has global

partnerships with several leading Fortune 1000 firms, including leading IT and

Technology firms.

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. The IT boom in India has caused a severe shortage of high-skilled ICT

engineers.

With HCL CDCs, HCL hope to play a leadership role in enlarging the talent pool

available to organizations deploying IT in India.

The faculty of industry experts and veterans draw upon over thirty years of HCL

experience in IT software, hardware, and networking and system integration.

Background

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The information technology training sector in India is witnessing a boom, driven by a talent crunch, paucity

of employable' graduates and all-round need for trained manpower at all levels.

The Information Technology (IT) education and training sector has been the pioneer in

imparting professional training in India. With a growing need of IT professionals,

plethora of technologies and products and consequent continuing education requirements,

presently the Indian IT training industry is booming.

The Indian IT training market is currently estimated to be worth $477 million of which

around 10 percent pertains to corporate training of around $47 million.

The IT corporate training market however is growing at a faster pace and this year it is

expected to grow at 40 percent. Over the next three years it is estimated to be a $236

million market.

However, based on current trends, the supply of software professionals is projected to be

885,000 by 2008. This suggests that there may be a shortfall of 235,000 software

professionals by 2008.With the demand supply gap growing there are abundant

opportunities for a good scalable and sustainable business model.

Key Issues Facing The Organization:

One of the major concerns for training companies is to:-

Create professionals who are better able to go in for a technology in a specific domain area.

Other than that, there are various issues that are affecting the IT training sector such as,

Lack of conviction regarding training,

Unplanned training approach,

Uncertain quality focus, and

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Lengthy decision making process.

The issues which HCL CDC and IT training companies need to solve are:-

With the coming up of various new technologies, it has become a challenge for the training

institutes to offer effective, updated, latest, planned training to candidates in a shortest-possible

time. This has become a matter of market leadership and survival.

Also, with the market opening up, there is an increasing trend of employees preferring a network

deployment and software engineer’s job.

Hence, if an enterprise’s standards of recruitment are high, it can be difficult to absorb good talent

as trainers and even more difficult to retain them.

These are some of the major and serious problems which need to be solved and looked after.

Case Study

Hindustan Computers Limited, also known as HCL Enterprise, is one of India's

largest electronics, computing and information technology company. Based in Noida,

near Delhi, the company comprises two publicly listed Indian companies, HCL

Technologies and HCL Infosystems.

HCL was founded in 1976 by Shiv Nadar, Ajai Chowdhry and four of their colleagues.

HCL was focused on addressing the IT hardware market in India for the first two decades

of its existence with some sporadic activity in the global market.

In 1981, HCL seeded a company focused on addressing the computer training industry,

NIIT, though it has currently divested its stake in the company.

In 1991, HP took minority stake in the company (26%) and the company was known as

HCL HP for the five years of the joint venture.

On termination of the joint venture in 1996, HCL became an enterprise which comprises

HCL Technologies (to address the global IT services market) and HCL Infosystems (to

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address the Indian and APAC IT hardware market). HCL has since then operated as a

holding company.

HCL Technology

HCL Technologies is one of India's leading global IT Services companies, providing

software-led IT solutions, remote infrastructure management services and BPO. Having

made a foray into the global IT landscape in 1999 after its IPO, HCL Technologies is

now focusing on Transformational Outsourcing, working with clients in areas that impact

and re-define the core of their business.

The company leverages an extensive global offshore infrastructure and its global network

of offices in 18 countries to deliver solutions across select verticals including Financial

Services, Retail & Consumer, Life Sciences & Healthcare, Hi-Tech & Manufacturing,

Telecom and Media & Entertainment (M&E).

For the quarter ended 31st March 2008, HCL Technologies, along with its subsidiaries

had last twelve months (LTM) revenue of US $ 1.8 billion (Rs. 7083 crores) and

employed 49,802 professionals.

HCL Infosystems

HCL Infosystems Ltd, a listed subsidiary of HCL, is an India-based hardware and

systems integrator. It claims a presence in 170 locations and 300 service centres. Its

manufacturing facilities are based in Chennai, Pondicherry and Uttarakhand .Its

headquarters is in Noida.HCL Infosystems Ltd with annual revenue of US$ 2.7 Bn (Rs.

11,855 crores) is India’s premier information enabling and ICT System Integration

company offering a wide spectrum of ICT products that includes Computing, Storage,

Networking, Security, Telecom, Imaging and Retail.

HCL is a one - stop -shop for all the ICT requirements of an organization.

India’s leading System Integration and Infrastructure Management Services Organization, HCL has

specialized expertise across verticals including Telecom, BFSI, E-Governance & Power.

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HCL has India's largest distribution and retail network, taking to market a range of Digital Lifestyle

products in partnership with leading global ICT brands, including Nokia, Apple, Casio, Kodak, Toshiba,

Bull, Ericsson, Cisco, Microsoft, Konica Minolta and many more. HCL today has India's largest vertically

integrated computer manufacturing facility with over threedecades of electronic manufacturing experience

The company has reported consolidated revenue of Rs 3108.3 crores during the quarter ended June 30,

2007 taking consolidated revenues for the year to Rs. 11855.4 crores.

Profit before tax was reported at Rs 123.6 crores during the quarter ended June 30, 2007 taking

consolidated PBT for the year to Rs. 428.7 crores, a growth of 11%.

Profit after tax was reported at Rs. 84.9 crores during the quarter ended June 30, 2007 taking consolidated

PAT for the year to Rs. 316.0 crores, a growth of 13%.

HCL CAREER DEVELOPMENT CENTRE

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Computer hardware manufacturer HCL Info systems Limited has decided to focus on

massive customer segments viz., corporate and educational institutions to expand its

information technology (IT) training wing.

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 purpose was to have a constant

puddle of qualified professionals for the

industry.

Today, the career development centers span India - wide with over 3000 students. The

spotlight has been on industry-experience and focus on 'real world' practical training.

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The faculties are drawn from HCL and the industry. The areas of center of attention

include both hardware and software - starting from basics in hardware and networking to

server related and security.

It may be recalled that the Rs11,648 crore turnover company entered the rewarding IT

education line in 2006 and focused on the retail segment with its 30 centers branded HCL

Career Development Centers (HCL CDC).

Located in major Indian cities, the centre offers full and part time industry related

courses in software and networking

"The corporate/enterprise and the educational institutional segments are new to us," says

S T M Eswar, head, HCL, Education. "The modalities of targeting them are being worked

out."

Meanwhile, the company is planning to add 70 more centers across the country taking the

total number of HCL CDCs to 100. According to Eswar, the company is more in favour

taking the franchisee route for expansion than through its own centers.

"A franchisee will have to invest around Rs25 lakh - Rs50 lakh to start a centre. Nearly

80 per cent of our centers would be franchisee owned. However the faculty is from the

HCL group companies," he said. Out of the existing 30 centers, HCL Infosystems owns

just six.

The HCL CDC courses are priced starting from Rs10,000 and goes up to Rs56,000.

Interestingly HCL Infosystems is not looking at rapid expansion of its IT education

centers. "We are capping the number of centers at 100. We will increase the depth of

courses," says Eswar.

http://www.domain-b.com/scripts/recommend/recommend.aspOne main reason for

capping the number of centers is that the teaching faculty at the centers is from the HCL

group. It would be easier said than done to find faculty members in house as each centre

would need around 5 trainers.

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Queried about the placement Eswar says, the company does not give any guaranteed

placement. Group Company HCL Technologies Limited meets its requirements for new

recruits from these centers.

HCL CDCs provide specially designed courses in high-end Software, Hardware and Networking

integration to groom students into industry-ready professionals.

The company already has operational HCL CDCs in six cities, namely Delhi, Noida, Pune, Coimbatore,

Meerut and Agra, and the company plans to set up similar centres overseas as well.

 

The IT boom in India has caused a brutal dearth of high-skilled ICT engineers. With HCL CDCs, HCL

anticipates to play a leadership role in enlarging the talent pool available to organizations deploying IT in

India.

The faculties are industry experts and veterans which have nearly over thirty years of HCL experience in IT

software, hardware, and networking and system integration.

 

In the world of high-end avant-garde technologies that we live in today, the students do not have the

capabilities on leading edge technologies, which is so very vital to build the ICT infrastructure in the

country. While a lot of prominence is given on availability of software engineering it is anticipated that the

Indian ICT market is over Rs. 84,000 crores today, 60-70% of which is hardware and Infrastructure

software.

  A study by Cisco-IDC estimates that one-third of companies are not able to fill up their demand for networking

professionals. Also according to an estimate by E-Value, there is an expected annual demand of around 2

lakh networking professionals in the country while the supply is restricted to about 60% of the demand.

The discrepancy is further estimated to grow at a CAGR of 21% till 2010.

 

The technological changes add further to the demand, resulting to not only a fissure in quantity but a huge

qualitative fissure as well. Hence the awareness and the urgent need to create a vigorous and sustainable

skilled manpower resourcing framework, has made HCL to set up the HCL CDCs.

 

HCL CDC courses have been planned keeping in mind the specific needs of modern day organizations. Their

mission is to transform their students into industry-ready professionals who are ready to take on enterprise-

wide IT deployment and integration assignments from the day one, without the need for any further

training by their eventual employers.

 

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HCL is offering a three-month full-time and one-year part-time course titled HCL Certified Network

Engineer (HCNE). The course involves 7 modules, 21 projects and 70 online tests as part of the academic

curriculum.

HCL CDCs also provide for placement support to all their students who do extremely well in their academics

and present a significant performance during the course.

The company also has plans for introducing short-term modular courses to augment skills of working

professionals, who aspire for faster growth in their respective careers. Most prominently the company

offers the students various flexible payment options.

To set up 100 career development centres

Hyderabad, May 24, HCL Infosystems Ltd has sewn up plans to set up 100 HCL Career

Development Centres (HCL CDC) designed to fine tune skills of technology workers,

including employees of corporate houses.

This effort is part of the company's drive to part-bridge the demand supply mismatch of

trained workforce, which is widening by the day.

The company is also evaluating options for setting up overseas centres, and South Africa

and West Asia would be initial options.

Training engineers

The Executive Vice-President of HCL Infosystems Ltd, Mr Rajendra Kumar, said that the

Indian ICT market is estimated at about Rs 84,000 crore and projected to grow to Rs 2,

40, 000 crore by 2010. Of this, about 60-70 per cent is hardware and infrastructure calling

for huge manpower base with such skills.

HCL has developed a courseware that covers software, hardware and telecom sector, and

squarely fits this into the demand for professionals in the emerging convergence business

environment.

The duty of these centres would be to train engineers in diverse skills helping them

handle the entire spectrum of business.

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This would be enhanced by more specialised training depending upon what the industry

demands, based on case studies and live business projects.

Moreover, there is massive demand within the corporate sector for constant retraining of

work force to meet new technology challenges. These centres will also be providing

training to the corporate houses which are customised for their business requirements.

Franchisees:

Of the 100 centres planned by HCL, 10 of them are to be handled by the company and

the rest are going to be offered to the franchisees.

Announcing the setting up of their 23rd centre in the country and the first in Hyderabad,

Mr. Kumar said that the company has plans for introducing short-term modular courses to

enhance skills of working professionals aspiring career shifts.

While the company offers students flexible payment options, the courseware costs range

from Rs 10,000 to Rs 50,000 depending upon the time-frame and the range of courses

opted for.

Microsoft and HCL Infosystems strengthen partnership

Mumbai, India, April 11, 2008: Microsoft Corporation India, leader in software for

personal and business computing and HCL Infosystems, India’s premier information

enabler, leading ICT System Integrator and Distribution Company – today announced a

set of initiatives which will further strengthen their long-lasting alliance.

The companies announced plans for the creation of a joint Centre of Excellence (CoE) for

development of vertical specific customised solution frameworks for India; the launch of

the world’s lowest cost Windows OS enabled laptop at Rs17,000 under the MiLeap brand

of HCL leaptops; and generating an industry ready workforce certified in Microsoft

technologies at the HCL Career Development Centres, which will offer a unique learning

experience.

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The announcement was made at an event attended by Kevin Turner, Chief Operating

Officer, Microsoft Corporation; Ravi Venkatesan, Chairman, Microsoft India; and Ajai

Chowdhry, HCL Infosystems Chairman and CEO.

Speaking at the event, Kevin Turner, Chief Operating Officer, Microsoft Corporation,

said, “For over 22 years, Microsoft and HCL have partnered with each other to promote

the use of information technology in India. We are delighted to reinforce this association

and empower Indian consumers and businesses with the latest and best that technology

has to offer.”

HCL, which launched the MiLeap series of laptops earlier this year, today announced the

roll out of the Windows OS enabled MiLeap. Available at Rs 17,000, it is the lowest

price Microsoft Windows XP powered laptop in the market. The MiLeap H Series runs

on Windows XP Home, has a 30 GB HDD and is broadband ready.

Microsoft and HCL Infosystems also announced the establishment of a new Centre of

Excellence (CoE) with over 500 software professionals to create, design and deploy

Microsoft technologies based solution frameworks across various industry verticals.

The CoE will leverage the System Integration capabilities of HCL and Microsoft’s

innovative suite of products in the area of IT requirement of customers across verticals,

which include Telecom, Banking, Financial Services and Insurance, Power, Defense,

Retail, eGovernance, Media & Entertainment, and MS based horizontal solutions in

Health, Railways and Airports.

According to the NASSCOM Strategic Review 2008, domestic IT Services spends are

estimated to be growing at about 43 percent in FY2008, and are showing signs of

increasing sophistication as building enterprise IT infrastructure and applications,

networking and communication become key priorities for India Inc. Considering this data

point, HCL and Microsoft see the CoE becoming a business enabler in the coming years.

The third part of the strategic alliance includes an agreement by Microsoft and HCL

Infosystems to train and certify 50,000 students on Microsoft technologies, in three years,

across 100 training centers – the HCL Career Development Centres - set up by HCL.

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The curriculum used will be the Microsoft Official Curriculum, the most comprehensive

and structured learning methodology designed and developed by Microsoft. The goal of

the Microsoft – HCL training initiative is to enhance the employability of students and

help the Indian IT industry retain its competitive edge.

The training will also provide a targeted framework for IT Managers to validate core

technical, professional and architectural skills.

As per NASSCOM, India’s emergence as a preferred outsourcing destination has created

the need for about 2.3 million professionals by 2010; and, based on current estimates, a

shortage of 0.5 million skilled knowledge workers may arise if remedial action is not

taken.

Further, India produces 4,00,000 engineers a year, of which only one in four is

employable as far as skills go. The MS-HCL partnership is targeted at creating a

sustained supply of skilled and certified manpower to address the employability issues of

the IT and ITES industry.

Commenting on the various initiatives announced, Ajai Chowdhry, Chairman & CEO,

HCL Infosystems Ltd said, “HCL & Microsoft have always brought value to each other

while jointly working towards propelling wider acceptance for IT amongst the masses.

Both HCL and Microsoft are key players in India market and this alliance has bought

value to the Indian customer with over three decades of innovation, passion and defining

markets. I am sure that this alliance will further enable overall development in our

country with IT as the key enabler.”

Adding to this, Ravi Venkatesan, Chairman, Microsoft India, said, “All three initiatives

announced today are very significant to our continual efforts at partnering the Indian

industry in its quest for success by leveraging the power of IT and enabling the uptake of

IT across India”.

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Analysis

IT TRAINING SECTOR IS WITNESSING A BOOM.

The information technology training sector in India is witnessing a boom, driven by a talent crunch, paucity

of employable' graduates and all-round need for trained manpower at all levels.

This growth is largely led by corporate training, especially at induction levels, followed

by re-skilling training .The major demand is coming from corporations and organisations

that wanted the training providers to come in and train large batches of students on

various skills In a survey, IT magazine Dataquest pegged the IT training market in India

in 2006/07 at Rs 21.35 billion, a rise of 46 per cent from the previous year.

Of this, 64 per cent was accounted for by corporate training and the remaining from

individual training.

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The sudden growth (the growth in FY06 was 14-15 per cent) is due to the recent

expansion of software firms in China and a few other countries. After the scorching

growth in 2006 it grew at a more sedate 35-40 per cent in the 2007.

Experts believe IT training in India has never had a better economic climate. The need for

skilled manpower is increasing and with technology upgrades, continuing education will

become an equally big market.

The Indian software development industry offers the biggest opportunity for IT training

companies. According to a survey conducted by India's National Association of Software

and Service Companies (NASSCOM), the demand for software professionals is expected to

be approximately 1.1 million by 2008.

However, based on current trends, the supply of software professionals is projected to be

885,000 by 2008. This suggests that there may be a shortfall of 235,000 software

professionals by 2008.With the demand supply gap growing there are abundant

opportunities for a good scalable and sustainable business model.

HCL IS AN INITIATIVE THAT ENABLES ASPIRING INDIVIDUALS TO

BENEFIT FROM HCL’S EXPERTISE IN IT INDUSTRY.

SUPPLY8,85,000

DEMAND 11,00,000

SHORTFALL 2,35,000

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HCL career program equips to meet emerging industry challenges with finesse and ease.

Opportunities to grow with HCL are limitless, catapulting you to high level controlling

positions in mega corporate.

With top HCL professionals as the trainers, customized career programs, hands on experience, state of art

infrastructure and world class training program, the career graph is bound to follow a steep rise.

HCL dominates the IT space as a leader. 45,000 gifted professionals, a colossal US $4

Billion turnover, an international presence in 17 countries, and most importantly a deep-

rooted commitment to innovate, makes it a true Technology Giant.

HCL CDC career program equips a student to meet emerging industry challenges with

finesse and ease. Opportunities to grow with HCL CDC are limitless, catapulting a

student to high level controlling positions in Mega Corporates.

With top HCL professionals as the trainers, customized career programs, hands on

experience, state of art infrastructure and world class training program the student's

career graph is bound to follow a steep rise.

 

HCL CDCs provide specially designed courses in high-end software, hardware and

networking integration to groom students into industry-ready professionals.

To enhance its market reach and strength, HCL has tied-up with global technology

leaders, viz. Microsoft, Oracle, Cisco, Red Hat and Thomson Prometric. These alliances

will help students learn the contemporary technologies through different modes of

learning.

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REVENUE

APRIL

MAY

JUNE

21 lakhs

27 lakhs

36 lakhs

HCL CDC, NOIDA

WITHIN 2 YEARS HCL CDC, NOIDA HAS CREATED A NICHE FOR

ITSELF.

HCL CDC, NOIDA witnessed a steep rise in their profits. From 21 lakhs in April, it

reached to 36 lakhs in June. Thus ranking top among all HCL CDC’s all over India.

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HCL CDC, NOIDA was the first career development center to be opened by HCL in India.

It was inaugurated in August, 2006 and since then it has created a niche for itself.

HCL CDC is also the topmost placement provider among all the CDC’s in north region.

Around 88% of the total students were placed and it is also the NO.1 revenue generator

for HCL Infosystems.

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The following graph compares the different HCL CDC’S (North Region) performance

and placement status.

This graph clearly shows how HCL CDC, Noida stands far ahead of its counterparts.

CANDIDATES NEED TO FOCUS MORE ON THEIR

COMMUNICATION SKILLS.

The majority of the students who were rejected by the companies were largely due to the

lack of communication skills.

In the month of June, north region had 133 students sitting for placements. Out of these

90 students were rejected by the companies solely due to the lack of communication

skills.

The companies also suggested that students do have the knowledge but they are not able

to communicate properly. This may be because majority of the students come from small

towns.

This can be solved by focusing more on the personality development classes for the

students. These classes will surely help the students in overcoming the fears and will

boost the confidence of the students.

SOURCES for case study:

www.thehindubusinessline.com

www.hcl.in

www.hclinfosystems.in

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CHAPTER-10

SYNOPSIS

Company Name:

HCL CAREER

DEVELOPMENT CENTRE

COMPETITOR ANALISIS

OBJECTIVE:

Marketing activity for HCL CDC.

Promotion of IT education.

To generate awareness about HCL CDC training center.

FINDINGS:

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HCL, the leading IT industry with experience of 32 years, entered in

training sector.

HCL CDC is the major player in corporate& retail training.

Across India, HCL CDC has 67 centres, thus marking its pan India

presence

HCL CDC, NOIDA ranks top in providing placements all over India.

CONCLUSIONS:

HCL CDC is gradually becoming one of the topmost IT training

provider.

Within 2 years it has created a niche for itself.

Candidates should work more on their communication skills

Implications

More marketing steps should be taken to generate awareness

regarding the HCL penetration in training sector

More focus should be given to the personality development classes

g. Key Suppliers

Some of the leading players in the organized sector are as follows:

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NIIT: Delhi based NIIT is a prominent player in the Indian IT education and training industry. NIIT

pioneered IT training in India by conducting education programs like Planetworkz, Futurz, Career Edge

and GNIIT. NIIT’s education delivery network is spread across 42 countries. NIIT, which pioneered the

concept of IT education in the year 1982 with the opening of its first centre in Bombay, today provides its

benchmarked quality computer education in 42 countries including China, Indonesia, Malaysia, South

Africa and USA. NIIT, which enrolled 322,000 students and professionals in the financial year 1999-2000,

today has more than students 6 lakhs on its rolls.

Starting off as an IT education and training company, NIIT has, over the years, evolved a hybrid business

model with its expansion into the domain of software development. The company’s operations span across

42 countries with regional headquarters in the US, Europe, ASEAN, Japan and India. NIIT offers the

widest and most comprehensive range of IT education programs. In order to give the most appropriate

programs to different market segments and to build a distinct brand identity in each segment, NIIT now

offers its education services under four separate brands - Futurz, CATS, SWIFT and LEDA. Futurz focuses

on Class 12+ students who are now preparing for a career and includes a series of programs of duration

varying from 6-months to 4-years on the latest e-Commerce and Internet technologies leading to DNIIT

and iGNIIT title.

CATS or Curriculum for Advanced Technologies Studies provides in-depth training to experienced IT

professionals in the advanced technologies. NIIT continued to gain market share in this segment and

entered into tie-ups with Microsoft, Oracle, Computer Associates and Red Hat.

SWIFT (Short Work Programs in Information Technology) caters to the wide literacy needs of non-IT

people keen to learn computers. NIIT is putting in place a focussed channel for SWIFT, by setting up a

huge network of user-friendly, informal and vibrant learning centres across India.

LEDA (Learning through Exploration, Discovery and Adventure) is catering to the requirements of the K-

12 segments. LEDA programs not only give school children an early exposure to computers and the

Internet but also harness the power of technology in tackling the school curriculum right from kindergarten

through high school.

NIIT has very strong brand equity in software services and the leadership position in IT

education. But, the economic slowdown has negatively impacted the training business

with a drop in fresh registrations. Again, in the education segment, the company faces

extremely strong competition from regional players. NIIT competes with a clutch of

listed firms such as Aptech and SSI Ltd in the domestic market for computer and

software education. The company, which derives a major portion of its revenues from

corporate training, is focusing specifically on engineering students.

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Asia's No. 1 trainer and leading Global Talent Development Corporation, NIIT has

further strengthened its leadership position in the Indian IT training market. With

revenues of Rs. 795 Crore, up 77% YoY in FY 2006-07, NIIT grew to become double the

size of next 6 players put togethers

APTECH: Headquartered at Mumbai, Aptech Limited is an ISO 9001:2000 certified provider of IT

education and training services. The company is in the retail training and education segment with long-

term career courses and the high-end short-term courses in Information Technology, multimedia and soft

skills training. The company also has interests in the institutional segment where it offers total learning

solutions to large corporations and government. Aptech’s core competencies are in the areas of education,

research and development, and content development among others. The company has a number of brands

and divisions that provide training. Aptech is listed on the Bombay Stock Exchange and National Stock

Exchange, India as well as the Luxembourg Stock Exchange. Aptech recently crossed the three and half

million-student mark.

NIIT Ltd and Aptech are two of the largest and oldest players in the sector and have been

busy expanding not only in India but also overseas. Aptech, which has been more of a

retail player compared to NIIT, has gone one step further. It is training graduates in its

retail programme soft skills to make them work-ready.

Jetking Info train: Mumbai based Jetking Info train is a computer hardware and networking technology-training

company. Jetking follows the franchising business model for growth and currently has more than 75 training centers

across India. The company offers certified courses for undergraduates, graduates, engineers and diploma holders, as

well as working professionals. The company has agreements with companies such as Microsoft, CompTIA, Linux,

Novell and Pearson VUE for its training material.

Policy makers agonize over the fact that Indian hardware is way behind software but that is not so in the

case of training. Jetking has been in the business of producing hardware engineers for over a decade and

finds no dearth of takers for its products. When Aptech and NIIT started training in software in the early

80s, there also arose a need for hardware engineers. Thus germinated the idea of a training institute for

hardware professionals and Jetking was started in 1992.

Jetking is the biggest trainer of hardware engineers in India today. The institute chain with its 75 branches

has till today trained over 1.2 lakh (120,000) hardware engineers. Jetking revenues, which rose from Rs 32

crore in 2003-04 to Rs 36 crore in 2004-05, were slated to go up to Rs 45 crore in the year 2006-07. Net

profit, which rose from Rs 2.2 crore in 2004-05 to Rs 2.75 crore in 2005-06, was expected to go up to Rs

3.75 crore in the year 2006-07.

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A market leader in the hardware training and education segment, Jetking has trained over 1, 50,000

students as hardware and network engineers. Jetking exclusively designs courses as per the market

requirement, also practical experiences are provided. Trained engineers from Jetking are picked by lot of

BPO companies.

The Indian training market seems to have got its rhythm back in the year 2008, having

gone downhill from 2001 through 2004. Last fiscal, the training market was worth Rs

2,135 crore, up 46% from FY 06 which saw a total turnover of Rs 1,453 crore, a 14%

growth over the previous fiscal. Growth came mainly due to good business done by the

two major players NIIT and Aptech overseas. We could soon see a repeat of the

performance of 2000-01, when training touched Rs 2,594 crore. Revenues from corporate

training and overseas operations, especially in China, brought home the bacon for the

Indian training industry. Corporate training at 64% of the total training market, worth Rs

2,135 crore

Individual training

Individual training paled in comparison to corporate training. The individual learning

business continued to focus on providing skill-sets to people for the IT/ITeS industry.

Fueled by the growth in hiring by this sector, the increasing requirement for newer skill-

sets and the rapid changes in technology, this business witnessed robust growth. For

improving the employability skills of fresh engineering graduates, NIIT launched a five-

semester long course Integrated ANIIT for Engineers (IAE)positioned as an additional

degree program for the engineering students to run parallel with their studies.

With hardware and networking courses constituting 30% of the IT training market, both

NIIT and Aptech got into this segment with NIIT launching Network Labs, a dedicated

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curriculum for infrastructure management. Aptech formed an alliance with US-based

Comptia for tapping the growth in this segment, and plans to roll out more than fifteen

centers by the year-end. KarROX, engaged in providing high-end technology training in

IT, BPO and mobile telephony industry also jumped in the fray by launching its MCTS-

SQL Server 2005 training program in October 2006.

Table:-4.3

Training: The Top Players (FY 07-08)

Company Revenue (Rs crore) Growth(%)

FY 06-07 FY 07-8

NIIT 450 795 77%

Aptech 121 190 57%

Jetking Infotrain 63 87 38%

Siemens 34 44 29%

CMS Computers 15 23 53%

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SQL Star 16 15 -6%

MAAC 5 19 280%

New Horizon - 16 -

Educomp - 28 -

Source: DQ estimates Cybermedia Research

The two biggies of the training market grew even bigger as the market saw rising niche players like MAAC

Source:-Internet

The Top Players in the IT training market

Traditional hardware training players like CMS Institute, with strong presence in the west

and south added around eighteen new training centers. It also tied up with Red Hat to

offer Linux training through its infrastructure management program and introduced an IT

Infrastructure Library (ITIL) certification course. Jetking’s most popular program,

JCHNP Premium, saw a student intake of 25,000. The number is huge considering its

overall student intake for FY 08 was 33,600.

Corporate training

The export success saga continued through FY 08, but growth also came from the

corporate training segment that has picked up very well over the last few years. It

constituted 64% of the total training market of Rs 2,135 crore, an indication of its

growing importance. From being just another business for the training companies, it has

gradually assumed the role of revenue grosser.

NIITs corporate learning solutions during FY 2007-08 provided learning solutions for

technology companies with a focus on developed countries, especially the US. A new

offering in the corporate learning solutions was Litmus, an assessment and testing

service. As part of this initiative, the company, under the "Tax Return Preparers" scheme

launched by the Department of Income Tax, trained over 4,000 selected candidates

Page 102: Project

Domestic and Export Training Market Exports: Stellar Performance

Performing on expected lines, overseas operations once again managed to outperform

itself going from a 56% in FY 06 at Rs 436 crore to a 59% growth, with the exports

market pegged at Rs 1,270 crore in FY 08. NIIT and Aptech, the two major players,

managed to carve a niche for themselves overseas, especially in China.