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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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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
Page 42
RESEARCH METHOLOGY
PROBLEM IDENTIFICATION
The core products of HCL INFOSYSTEMS LTD. have been EZEEBEE,
BANSTALK, HCL EZEEBEE NOTEBOOK, and TOSHIBA NOTE BOOK. Thin
Page 43
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
Page 44
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
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.
Page 46
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
Page 47
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
Page 48
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
Page 54
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.
Page 55
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
Page 56
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.
Page 61
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
Page 63
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.
Page 65
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.
Page 66
SWOT ANALYSIS FOR HCL PRODUCTS
STRENGTH
Page 67
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.
Page 68
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.
Page 69
BIBLIOGRAPHY
TEXT BOOK
Philip Kotler (2004) Marketing management
C.R. Kothari (2004) Research Methodology
Page 70
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
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.
Page 73
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.
Page 75
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
Page 76
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
Page 77
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
Page 78
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
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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.