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An Introduction to the IT Industry: With HCL as an example Anand Narayanan Corporate Marketing
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  • 1. An Introduction to the IT Industry: With HCL as an example Anand Narayanan Corporate Marketing

2. The Information Technology Landscape: A worldview There are 3150 companies in the Bloomberg database belonging to IT Sector (Hardware, Software, and Services). Of the 3150, 345 (11% of total) recorded 5-year Revenue CAGR greater than 25%. Of the 345, only 13 (0.4% of total) had revenues greater than $2.5 Billion. Of the 13, only 8 (0.3% of total) had market cap greater than $5 Billion.Source: HCL Strategic Intelligence Wing, Bloomberg database as on 1 st July 20112 3. UNDERSTANDING HCL 4. A Quick Snapshot $6 B I L L I O N 31 CO UNTRIE S 90000 P E O P L E 4 5. Strong belief in three core valuesTo know more about HCL, look for Employees First on YouTube5 6. The Business of an IT Services Company 7. Trends in the Technology sector IT ServicesLevel Playing Field and IOP relevance.The Indian Top-5 grew 5x faster than the Global Top-5 over the last 2 years35% 27% 25% 20%15%9%7%5% 2%1%CTS HCLTCSInfosys Wipro Accenture Capgemini IBM HP CSC ~54% growth in IOP Market Share Share of IOP in IncrementalRevenues ($24 BN)13%17%45%87%83%55%TTMSep09TTMSep11 Global Top 5 Indian Top 5Global Top 5 Indian Top 57 8. Growth of Indian IT (vs HCLs Growth) 33.5%32.6%30.5%28.5% 27.6% 25.8% 24.7% 26.5% YoY Growth21.0%21.4%21.5% 26.4%25.6%24.8% 18.2%18.3%19.6%19.5% 14.9%15.5%6.0% -2.0%-3.0%-3.8% JFM09 AMJ09 JAS09 OND09 JFM10 AMJ10 JAS10 OND10 JFM11 AMJ11 JAS11 OND11 HCLAverage (Top 3) 8 9. How does HCL go to market: GTM structure CY11 vs CY10 (YoY Growth) Geography17%US 19.8%27%56% Europe 29.6% ROW45.9% Enterprise Application Services20.4%5% 21%Service Lines24% Engineering and R&D Services 22.0% 18% 32% Custom Application Services32.6% Infrastructure Services34.8% BPO Services -2.5% Financial Services 29.4%Verticals7% 6%26%Manufacturing32.7%8%7% Telecom 2.0% 8% 9% 28%Retail & CPG 27.2% MPE17.1% Healthcare 24.3% E, U & Public Sector 35.4% Others 29.9% 9 10. What to look for: Beyond simple numbers HCL Client Concentration HCL Revenue per Employee Increasing significance with clients Client recognize value employees createOver last 3 years, Number of $10mn+ and $20mn+ have moreHCL Revenue per Employee is among the highest in the than doubled. $50mn+ clients have tripled. Indian IT. 10 11. Brand Matters: HCL is positioned as the CIOs best friendClients From clientincreasinglysatisfaction tofocus on theclient happiness businessHCL continues tobenefits from improve clienttheir vendorsatisfaction. This alsorelationships, rencapsulates greaterather thanintimacy with itsefforts-based customers through itsprocurement customer advisorycouncil (CAC) thatcontinues to lay out theroadmap for the overalltransformation processHCL will not strive to compete in businessconsultancy services. It will focus on making theCIO successful in driving that technology-ledbusiness transformation by being its mosttrusted technology partner* Source: Gartner Report published 19th Jan 2011 [ID Number: G00209906]11 12. THE ROAD AHEAD 13. 5 Mega Trends that you need to be aware of Clients looking at output not Input Transformation is in the interface1 From procurement-led to 2 of multiple technologies business benefit-led buyTechnology will lead strategy to From best efforts to Integrated increase business competitiveness solution buy(Digital, Pro-activity, High volume, new From relationships to value consumer etc.) Complexity is increasingFrom global delivery to global business3 Application skill landscape will 4 Social responsiveness change Emerging markets (Cloud, BI, SOA, Lean, Virtualizatio Protectionism n, Enterprise solutions) Pyramid models will become obsolete Innovation moves to the Edge5 Mobile Phones vs. PCs Social networkingtechnologies dominating13 14. So what does this mean to you? A few tips Understand existing and emerging technologies Probably the most fundamental competency that all IT professionals need is a deep and broad knowledge basein their bread-and-butter technical skill sets. If you go for certifications, remember your goal is not simply to put more letters after your name but to maximizethe value of the educational experience. Communicating and listening; gathering information Be mediocre at everything else but be perfect at this: communication. Its one of the key competencies everyonemust have, and its especially important for IT pros. Creativity and Innovation There is always acceptance of productive breakthrough ideas and IT Cos constantly brainstorm ideas by not onlyinvolving the top management but also by pooling in ideas from all the employees. Thinking strategically Its an increasingly competitive world, and todays IT professionals must prove, every day, that they can addtactical and strategic value and that they belong and are welcome at any meeting taking place anywhere in theirorganizations.Being adaptable Gone forever are the days when being a technology professional meant having expertise in a particulardevelopment environment or being able to build and support a network. But to become a truly well rounded ITprofessional, you need to work constantly on expanding and honing your skills.14 15. Brief introduction of MAD LTDMAD LTD is a launch pad from where Creativity and Innovation are critical assets for participants can make a difference to theany IT organization.society and bring their idea to realizationwith support from HCL. New ideas are the backbone for a sustainablebusiness in IT industry. E.g. EFCS was a breakthrough innovative ideawhich transformed HCL. HCL takes initiatives to pool in ideas in andThe campaign runs in and out of HCL pooling innovativeoutside the organization through its MAD LTD ideas, scrutinizing for their(Make a Difference, Lead the Difference) feasibility and commercialization.program.The program aims at the youthpredominantly students in Further details can be found on engineering and managementcolleges.www.madltd.com or the MAD LTD FB Page.MAD, within HCL, has given birth toinnovative ideas and solutions.e.g. Customer Onboarding Solutionoffered by HCL.15 16. Questions?Dont forget to watch theEmployees First Effect on YouTube16