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Table of Contents

Topic Page No.


IT Industry
• Overview 3
• Indian IT Sector 3-4
• Outsourcing 4-5
• MNCs in India 5-6
• Domestic Markets 6-7
7-9
• Growth
9-11
• IT services 11-12
• Managing IT 13
• Professional Organizations 14-16
• Major Players

HCL
• Profile 16-23
• Work at HCL 24-27
• Cases Studies 27-31

History of HCL 31-37


Guiding Principles 37-38
Growth 38-41
Milestone 42
Deals 42-44
Achievements
• Key Achievements 44
• Other Achievements 45-49
• Awards & Accolades 50-52
• Key Initiatives 52-53

Services Provided 54-60


Product Range 60-66
Statistical Profile 66-70
Financial Status 70-76
Future Prospects 76-80
Critical Appraisal 80-83

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IT Industry-Overview

Information technology (IT), as defined by the Information Technology Association of


America (ITAA), is "the study, design, development, implementation, support or management of
computer-based information systems, particularly software applications and computer
hardware." IT deals with the use of electronic computers and computer software to convert,
store, protect, process, transmit, and securely retrieve information.”

Today, the term information technology has ballooned to encompass many aspects of computing
and technology, and the term is more recognizable than ever before. The information technology
umbrella can be quite large, covering many fields. IT professionals perform a variety of duties
that range from installing applications to designing complex computer networks and information
databases. A few of the duties that IT professionals perform may include data management,
networking, engineering computer hardware, database and software design, as well as the
management and administration of entire systems. When computer and communications
technologies are combined, the result is information technology, or "InfoTech". Information
Technology (IT) is a general term that describes any technology that helps to produce,
manipulate, store, communicate, and disseminate information. Presumably, when speaking of
Information Technology as a whole, it is noted that the use of computers and information are
associated.

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Indian IT Sector

The Indian information technology sector has been instrumental in driving the nation's economy
onto the rapid growth curve. According to the Nasscom-Deloitte study, the IT industry's
contribution to the country's GDP has increased to a share of 5.2 per cent in 2007, as against 1.2
per cent in 1998.

Further, the IT and BPO industries are expected to earn revenues worth US$ 64 billion by the end
of fiscal year 2008, registering a growth of 33 per cent with exports expected to cross US$ 40
billion and the domestic market estimated to clock over US$ 23 billion, according to a study.

India's IT growth in the world is primarily dominated by IT software and services such as Custom
Application Development and Maintenance (CADM), System Integration, IT Consulting,
Application Management, Infrastructure Management Services, Software testing, Service-
oriented architecture and Web services.

A report by the Electronics and Software Export Promotion Council (ESC) estimates software
exports to register a 33 per cent growth in the current financial year with export figures during FY
2008 expected to reach US$ 45 billion. The country's IT exports have, in fact, come quite far,
starting from a few million dollars in the early 1990s. The Government expects the exports
turnover to touch US$ 80 billion by 2011, growing at an annual rate of 30 per cent per annum.

Outsourcing
Outsourcing IT is an outgrowth of the focus on achieving value for money spent on IT. The
theory behind IT outsourcing is that “an expert third party can handle IT functions most
efficiently and less expensively than the company itself”. Companies increasingly desire to stick
to their "core competencies," the functions that provide them competitive advantage in the
marketplace.

Though a related phenomenon, Offshore Outsourcing, has gained prominence recently,


companies have off-loaded IT functions including Help Desk, IT Infrastructure, and Data
Warehouse to outside providers for decades. Another related approach is the Application Service
Provider (ASP) model through which companies "rent" software applications or equipment from
the provider for a monthly fee. When companies outsource IT functions to outsourcers or ASPs,

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Service Level Agreements (SLAs) define every aspect of the arrangement between customer and
provider, outlining the level of service to be provided and the consequences if that level is not
met.

A research forecasts India as the undisputed leader in the outsourcing space in the year 2008. The
Outsourcing Service Provider Performance Study 2007, reported that the majority of UK
businesses offshore all or parts of their IT functions to India and plan to continue with this
strategy as India emerged the favorite outsourcing destination for businesses in UK in terms of
satisfaction.

Another study conducted by Nasscom jointly with the Everest consulting firm reports the Indian
outsourcing sector logged a 35 percent annual growth over the last five years with annual
revenues touching US$ 11 billion, with the bulk coming from exports. India has ousted China as a
contender for offshore services and tops the list of 30 countries on criteria’s such as language,
government support, labour pool, infrastructure, educational system, cost, political and economic
environment, cultural compatibility, global and legal maturity, and data and intellectual property
security and privacy.

No wonder, Twenty-nine India-based companies have been listed among the best 100 IT service
providers in a new survey carried out with a view to assist business heads of major outsourcers
identify reliable, innovative and tech savvy partners.

Multinationals in India

Information Technology has been a promising sector for India, generating revenues both for the
domestic as well as the global market. India's IT potential has attracted multinationals to grab a
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share of the pie and cash in on the IT boom. India offers a market with very high returns for
multinationals flocking to invest in their India units. Also, the increase in purchasing power and
the rapid business expansion of the Small and Medium Enterprises (SMEs) holds promise for
global information technology (IT) giants who look at a 100 per cent year-on-year growth in their
Small and Medium Businesses (SMBs) market in India.

• Capgemini, Europe's largest consulting and computer services firm is gradually


moving its internal support services to India.
• After sourcing IT applications from some IT firms last year Wal-Mart will now
expand its existing operations given India’s impressive IT capability to cover more firms
and augment its work in the United States.
• Intel –the globally renowned chip maker is looking to invest more than US$ 1
billion in India over the next three years in partnership with Indian and foreign hardware
firms to prepare lightweight personal computers.
• Cisco posted over 100 per cent year-on-year growth in its SME business in India.
• Oracle is expecting over 100 per cent growth in India for its CRM business on the
back of increased technology awareness and need for cost-effective customer servicing.
• Yahoo! Inc and Tata Sons subsidiary firm Computational Research
Laboratories (CRL) have entered into a joint agreement to make available-EKA, a
supercomputer (the fourth fastest) in the world for cloud computing research in India.
• Dell India's witnessed 80 per cent sales over last year with revenues to the tune of
US$ 700 million.
• World's leading chip designer firm ARM is expanding its India design centre to
make it the largest outside Britain.
• IT biggies like Microsoft, IBM, Cisco, Oracle and a host of other IT entities are
working overtime to tap the smaller and medium businesses.

Domestic Markets

India's domestic market has also become a force to reckon, with the existing IT infrastructure
evolving both in terms of technology and depth of penetration. Global IT companies as well as
domestic biggies like IBM, Accenture, HP, TCS, HCL and Wipro have witnessed a remarkable
growth in their business.

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The domestic information technology business has become far too attractive to ignore. India Inc's
demand for IT services and products has bolstered growth in the domestic sector with deal sizes
going up remarkably and contracts worth US$ 50-100 million up for grabs.

Nasscom vice president, Rajdeep Sahrawat, feels the domestic IT market has evolved
significantly from what it was earlier. “There are mega deals up for grabs both in the private and
public sector. For instance the railways ERP project, the BSNL systems integration, networking
projects, IT work from ministry of finance and private telecom companies, banks and others are
offering multi-year contracts that are over US$ 100 million”

Global market intelligence and consulting firm IDC reports that the domestic IT market will grow
at 24 per cent in 2008 to touch US$ 27.35 billion. IDC sees a higher local demand driven by
growth of broadband, expansion of Software-as-a-Service (SaaS), service oriented architecture,
and virtualizations as also networking projects. The net margins in the domestic market are at
about 9-11 per cent, which has improved, considerably in recent years. Of late IT service
providers, MNC's and domestic firms have recognised the potential of the home market.

Growth

The Indian information technology sector continues to be one of the sunshine sectors of the
Indian economy showing rapid growth and promise. Though worldwide IT budgets are expected
to increase by 3.3 per cent in 2008, slightly higher than 2007, the Indian firms would report
stronger-than-average IT budget increases of around 13 per cent.

• India's software and services exports are expected to reach US$ 40.8 billion
whereas the domestic market is expected to touch US$ 23.2 billion dollars in FY08 as per
the 'Strategic Review 2008' by IT industry body Nasscom.
• With small and mid sized businesses driven by the increased use of technology the
country’s information and communication technology market is estimated to grow 20.3
per cent annually to reach US$ 24.3 billion by 2011.
• A survey carried out to assist business heads of major outsourcers to identify
reliable, innovative and tech savvy firms had listed twenty-nine India based companies
amongst the best 100 IT service providers including Tata Consultancy Services, HCL
Technologies, Genpact, and WNS Global Services amongst others.

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According to the global infotech analyst International Data Corporation, the Indian IT market is
estimated to grow at the rate of over 16 per cent to become a US$ 132 billion industry,
significantly, the domestic market alone is expected to become over US$ 50 billion, with a CAGR
of about 18.4 per cent. Simultaneously, the IT exports are estimated to more than double to US$
78.62 billion in 2012.

The Indian IT industry had recorded a growth rate of 22.4 per cent in 2007 to become a US$
60.57 billion industry, US$ 49.47 billion in 2006.

The robust growth of India Inc. can be attributed to the meteoritic success of 'India IT Industry '.
In fact no other Indian industry has performed so well against the global market.

The master control of 'Indian IT Industry' is in the hands of Department of Information


Technology (DOT) which aims to make ' Indian IT Industry ', a Global IT Super Power by 2008
- a front-runner and bring the benefits of electronics to every walk of life. Further, it is focused on
Creation of Wealth, Employment Generation and IT led Economic Growth. According to sources,
annual revenue projections for ' India IT Industry ' in 2008 are US $ 87 billion and market
openings are emerging across four broad sectors, IT services, software products, IT enabled
services, and e-businesses thus creating a number of opportunities for Indian companies. All of
these segments have opportunities in foreign and as well as in domestic markets.

Sources estimates -

 IT services will contribute over 7.5 % of the overall GDP.


 IT Exports will account for 35% of the total exports with potential for 2.2 million
jobs in IT by 2008.
 IT industry will attract Foreign Direct Investment (FDI) of U.S. $ 4-5 billion.
 Market capitalization of IT shares will be around U.S. $ 225 billion.

With the formation of a new ministry for IT, Government of India (GOI) has taken major steps
towards promoting ' India IT Industry '. It has taken steps to promote angel investors, venture
creators and incubation to promote -

• Electronics and hardware manufacturing.


• R&D.

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• Increase PC penetration.
• Increase utilization of Internet.
• Domestic software market.
• Development of local language softwares.
• Use of IT to increase productivity.
• Use of IT as a means of generating employment.
• Availability of technical work force.
• Number and quality of training facilities.

'IT Industry India ' is a knowledge industry that will help take the Indian economy to a new
horizon and further change the ' Scenario of Indian IT Industry' fueling India's economic
growth.

IT services

Companies such as Accenture, IBM and LogicaCMG are amongst the biggest names in the UK
providing expert support and services to other organizations.

There are many big graduate recruiters in technology consultancy roles that provide a
combination of IT services, be it through hardware, software and web development, or specialist
consultancy services for a niche market. For example, RM provides IT services and software for
UK educational establishments, while Detica specializes in the delivery of intelligence systems.

For IT services, many companies will recruit from any degree discipline, although some will
specify an IT-related degree. Increasingly, in addition to a strong interest in IT, business and
commercial awareness and client-focused skills are sought for consultancy roles.

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Financial services

These include domestic clearing banks, building societies and investment banks. The latter, such
as UBS and Lehman Brothers, have a unique requirement for secure, high-quality systems that
manage the vast number of banking transactions carried out around the globe every day.
Adequate levels of technical support are also needed.

Financial services organizations and banks need graduates to design and test core mainframe
systems and PC applications. This could involve installing systems to ensure back up and security
is maintained, or working on improving current networks.

Software product development

Companies in this area build tools that help organizations use IT more effectively and efficiently.
Software development often involves linking together existing products. There is currently a
focus on developing products for e-business solutions and business-to-business (B2B) software
and services.

Roles in software product development can be highly technical and require an IT-related degree,
often at 2:1 level or above. Some of the companies that recruit in this area include BT, Data
Connection, and Tessella Support Services.

In-house IT

Every organization, public and commercial, needs IT systems to carry out its business, monitor its
performance and achieve ever-greater efficiency. Retailers like the John Lewis Partnership and
Cadbury Schweppes need IT specialists to provide systems developments in order to advance e-
commerce and e-business initiatives.

In-house organizations tend to recruit from a wide range of degree disciplines, offering further
training as appropriate.

IT sales and marketing

All kinds of IT organizations offer positions in sales and marketing where employees sell
hardware and software, and promote consultancy or outsourcing support.
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Companies such as IBM recruit from a wide range of disciplines, although a certain level of
technical knowledge is needed.

Technology

New technologies are constantly developing. Developments mean that IT is faster, easier and can
be used on a smaller scale. For example, Internet access via mobile phones and the popularity of
the iPod have revolutionized the music and multimedia industries.

Future examples of developments in technology: -

• Computing will be embedded in everyday appliances. People are getting used to


the idea of intelligent fridges and ovens, but now there are intelligent toilets pioneered in
Japan!
• Telecom companies are set to invest in technology that involves using the Internet
to make phone calls instead of the regular network – the phone bill could become a thing
of the past.
• Digital tagging (implanting microchips under the skin) will be developed so that
traditional forms of ID and credit cards are no longer needed – the implanted chip would
simply need to be scanned into a computer.
• Radio Frequency Identification (RFID), an automatic identification method,
involves inserting RFID tags into a variety of products. Passers-by could, for example,
point a mobile phone at a poster or advertisement and download dates, and website or
contact details.

Managing IT

At the broadest level, managing IT is the practice of overseeing and running a company's
information technology (IT) investments and systems. The highest-level IT person in a company
is usually the Chief Information Officer (CIO), who participates in Strategic Planning with senior
managers to determine how IT can help the company achieve its business objectives. These
objectives might include getting to market faster with a new product or reducing the amount of
inventory it carries.

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At companies of all sizes, IT spending is one of the biggest line items in the budget. Large
enterprises typically spend between one percent and 10 percent of revenues on IT,
depending on the industry. A large company's major IT systems typically include:

• Enterprise Resource Planning (ERP)- Manufacturing companies use


ERP to run the business, tracking and entering orders, transferring them to the
factory for production and then out through the supply chain for distribution to the
ultimate customer.
• Customer Relationship Management (CRM)- This system collects data
directly from the customer and uses this data to plan marketing campaigns,
improve customer service, and design better products.
• Internetworking- The corporate local area network (LAN) connects
employees to databases and applications and lets them share data. The network
may be based on wired (traditional) or wireless LAN technology. Corporate
offices are connected via a wide area network (WAN).
• eCommerce platform- In the age of the Internet, virtually all companies
sell their goods and services to their market via Web sites. eCommerce platforms
run the gamut from high-profile retailers' Internet shopping sites to business-to-
business (b2b) sites that a company's customers and suppliers can use for self-
service functions such as order tracking.

In past years, millions of companies all over the world spent enormous sums of money on
technology without realizing a Return on Investment (ROI). As a result, senior
management demanded better oversight of technology purchases with more emphasis on
justifying the proposed project before allocating the funds. An alternate form of
justification, called Total Cost of Ownership (TCO) analysis, has gained popularity. This
involves analyzing not only the initial cost of the hardware and software to determine
project costs but also the cost to train employees as well as maintain and run the system
over its entire lifecycle.

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Professional organizations
• AITech-Assinform is an Italian association of information & communication
technology companies and an affiliate of Confindustria.
• Malaysian National Computer Confederation is a Malaysian confederation
dedicated to the development of IT Professionals and the creation of an Information Rich
Society.
• The Association for Computing Machinery (ACM) was founded in 1957 as the
world's first scientific and educational computing society.
• The Australian Computer Society (ACS) is an association for Information &
Communications Technology (ICT) professionals in Australia.
• The Australian Information Industry Association is the national organization
representing ICT companies in Australia.
• The British Computer Society (BCS) is the largest UK-based professional body
representing those working in IT.
• The Canadian Information Processing Society (CIPS) is the largest professional
body for computing in Canada.
• The Computer Manufacturers, Distributors, and Dealers Association of the
Philippines (COMDDAP) are an association of leading information technology
businesses in the Philippines.
• The Computer Society of India (CSI) is the national body representing computer
professionals in India.
• The Council of European Professional Informatics Societies (CEPIS) is a non-
profit organization that promotes high standards among informatics professionals across
Europe.
• The Information Technology Association of America (ITAA) is an industry
trade group for most of the world's major ICT companies.
• The National Association of Software and Services Companies (NASSCOM) is
an association of Indian IT companies.
• The New Zealand Computer Society (NZCS) is the national body representing
ICT professionals in New Zealand
• The Philippine Software Industry Association (PSIA) is an association of
Philippine IT companies.

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• The Union of Information Technology Enterprises (UITE) of Armenia is
Armenia's first and largest IT association.

Major Players in IT industry

Conglomerates
GE HCL
LG Hitachi
Matsushita Philips
NCR News Corp.
Sony Samsung
Thomson Siemens
Toshiba Vivendi
Computer Hardware
Acer Apple
Fujitsu Siemens Dell
Hewlett-Packard Lenovo
Quanta Samsung
Sony Toshiba
Computer Networks
3Com Alcatel-Lucent
Avaya Allied Telesis
Cisco Ericsson
Huawei Foundry
Juniper Nortel
ZTE Nokia Siemens
Dot Coms
Amazon.com AOL
eBay Yahoo!
Google Rediff
Electronics Manufacturers
Celestica Elcoteq
Foxconn Flextronics
Jabil Kimball
Quanta Plexus
IT Services
Accenture ACS Atos Origin
Booz Allen Hamilton Bearing Point Avanade
BT Getronics First Data
Capgemini HCL Tech EDS
CGI i-Flex Deloitte
Cognizant CSC Compuware
IBM Indra Infosys
Keane Logica Neusoft
PA Perot SAIC
Steria Satyam Sapient
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Syntel TCS ThoughtWorks
Unisys Titan TietoEnator
Virtusa Wipro Xansa
Storage
EMC Fujitsu
Maxtor NetApp
Samsung Western digital
Seagate Hitachi
Semiconductors
AMD Analog Devices Broadcom
Elpida Fairchild Freescale
Skyworks Hynix Infineon
Intel Micron National
Nvidia Samsung NXP
Qimonda Renesas Rohm
Sharp ST Microelectronics VIA
Software
Activision Blizzard Adobe Apple
CA Citrix EA
IBM Intuit McAfee
Microsoft Nintendo Novell
Oracle Red Hat SAP
Sega Sony Sun
Symantec Take-Two Interactive Ubisoft
Vertically Integrated Manufacturers
Apple NEC
HP Sun

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Profile Of HCL

Type Public
(BSE: 532281; NSE: HCLTECH)
Founded 11 August 1976
Headquarters Noida, UP, India
Key people Shiv Nadar, Founder, Chairman, Chief
Strategy Officer; Vineet Nayar – CEO;
Ranjit Narasimhan - COO-President, BPO
Division.
Industry Information Technology Services
Revenue ▲USD 4.8 Billion

Employees 55,000 (2008)


Website HCL website

Corporate Office

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HCL Infosystems Ltd.
E-4, 5 & 6, Sector 11,
NOIDA 201 301, UP
India

Tel: 2526518/19, 2520977


Fax: 2550923

Prefix from Delhi: 95120


STD Code: 0120,

ISD Code: 120

Email: webhost@hcl.in

Other Locations in India

Ahmedabad, Bangalore, Baroda, Bhopal, Bhubaneswar, Chandigarh, Chennai, Cochin,


Coimbatore, Dehradun, Guwahati, Hyderabad, Indore, Jaipur, Kanpur, Kolkata, Kozhikode,
Lucknow, Madurai, Mumbai, Nagpur, Noida, Patna, Pune, Raipur, Ranchi, Rudrapur,
Thiruvananthapuram, Trichi, Vijaywada, Vishakapatnam.

HCL Technologies (abbr. for Hindustan Computers Limited) is India’s 4th largest leading
global IT Services companies, providing software-led IT solutions, remote infrastructure
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management services and BPO. Having made a foray into the global IT landscape in 1999 after
its IPO, HCL Technologies focuses on Transformational Outsourcing, working with clients in
areas that impact and re-define the core of their business.

For the quarter ending 31st December 2007, HCL Technologies, along with its subsidiaries had
revenue of US $ 1.6 billion and employed more than 47,000 professionals.

The 3-decade-old enterprise, founded in 1976, is one of India's original IT garage start-ups. Its
range of offerings span R&D and Technology Services, Enterprise and Applications
Consulting, Remote Infrastructure Management, BPO services, IT Hardware, Systems
Integration and Distribution of Technology and Telecom products in India. The HCL team
comprises 55,000 professionals of diverse nationalities, operating across 18 countries including
360 points of presence in India. HCL has global partnerships with several leading Fortune 1000
firms, including several IT and Technology majors.

As we know that HCL Enterprise comprises two companies listed in India: HCL Technologies
and HCL Infosystems. HCL Technologies is the IT and BPO services arm focused on global
markets, while HCL Infosystems deals in the IT, Communication, Office Automation Products &
System Integration arm focused on the Indian market. Today, HCL has 45,000 employees of
diverse nationalities, operating across 17 countries including 360 service centers in India.

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. The
company has been accredited with ISO 9001:2000, ISO 14001, TS 16949 and ISO 13485.

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.

Their strengths can be summarized as:

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- 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 it has attempted to pioneer the technology introductions in the country either through
our R&D or through partnerships with the world technology leaders.

Using their own R&D they have:

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


- Developed firewalls for enterprise & personal system security.
- Launched their own range of enterprise storage products.
- Launched their own range of networking products.

HCL Infosystems has to its claim several technology pioneering initiatives. Some of them are:

- Country's first Desktop PC - BusyBee in 1985.


- Country's first branded home PC - Beanstalk in 1995.
- Country's first Pentium 4 based PC at sub 40k price point.
- Country's first Media Center PC.

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Founder

At a time when India had a total of 250 computers, Shiv Nadar led a young team which
passionately believed in and bet on the growth of the IT industry. That vision in 1976, born out of
a Delhi "barsaati” has resulted 3 decades later in creating a $ 4.9 billion global Enterprise.
Acknowledged as a visionary by the IT industry and his peers, Shiv Nadar has often made daring
forays based on his conviction of the future. At a time when hardware was the name of the game,
Nadar foresaw the huge potential in the area of IT education & learning from which NIIT was
born.
Shiv Nadar firmly believes that, "If you want to empower people, give them the tools. There's
enough entrepreneurship in this country to take care of the rest." He is quick to grasp new
opportunities, select a team to transform his ideas into reality and delegate the project to
professionals.

In January 2005, Shiv Nadar received The CNBC Business Excellence Award from the Prime
Minister of India. In February 2005 he was listed by "India Today" in the Power List of India's
leaders from all walks of life, for building a global IT Enterprise from scratch in 3 decades,
creating valuable JVs with marquee partners such as Deutsche Bank, and creating jobs in Belfast
when India was being criticized for just the opposite. More recently, Shiv Nadar received the
Ernest & Young Entrepreneur of the Year Award 2007 in the 'Services' category for being "a
doyen of the Indian IT industry and perhaps its chief architect". The University of Madras
awarded him an Honorary Doctorate Degree in Science in November 2007, for his contribution
to not just the IT industry in India, but also for his "transformation of technological culture
globally". Shiv Nadar has been conferred the Padma Bhushan Award - the third highest
civilian honor conferred by the President of India - in January 2008, in recognition of not just his
contribution to trade & industry in India but also his deep commitment to public good.
He founded the not-for-profit SSN College of Engineering in Chennai, which is today among the
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top ten private engineering colleges in India, enabling world class higher education for students
across socio-economic strata. Shiv Nadar is also building 6 "VidyaGyan" public schools in Uttar
Pradesh that will provide free, world-class education to rural children from economically
disadvantaged backgrounds. Concerned with the public health issues in India, Shiv Nadar is
involved with the Public Health Foundation of India (PHFI) - working to establish standards in
public health education and to create a network of innovative world-class India-relevant institutes
of public health. He also supports initiatives for the girl child and also takes active part in efforts
for the empowerment of women.Shiv Nadar currently resides in Delhi with wife, Kiran and
daughter, Roshni.

HCL DNA

The TIME magazine has referred to HCL as an "intellectual clean room where its employees
could imagine endless possibilities". The fact is, over the last thirty years that HCL has been

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operational, the company has stood by its values and core philosophy.
HCL has had a 3-decade rich history of inventions and innovations. Entrepreneur is the term that
best describes the HCL employees. Ever since HCL entered into an alliance in 1970s,
partnerships and HCL have been inseparable. Bonds have been forged with partners to co - create
value.

Work at HCL

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HCL treats people as people, not ‘human resources’. Its five-fold path to enlightenment
provides the workforce with space to grow, time to think, tools to use. It gives them whatever
they need to succeed – be it a virtual assistant or talent transformation sabbaticals; inner peace or
fast track growth; expert guidance or democratic empowerment. The result of such cooperative
environment is that over 40000 highly motivated individuals are working for 500 satisfied
customers around the globe. HCL recognizes human resources as the backbone of its long-term
success and has consciously focused on increasing the value-add per employee. Its unique
approach has made it an employer of choice both in India and abroad. Utmost importance is
attached to attract the best talent into the organization, continuously train, improve the skill set of
these professionals, and help them perform in the most challenging assignments.

HCL boasts of its people and recognizes every mind as an engineering powerhouse. It offers a
unique experience to people through technology and process innovation. It breeds leaders to work
for leaders.

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Everyday Work enjoyed at HCL
HCL provides a dynamic, fast paced and flexible work environment that nurtures relationships
and constantly celebrates its people's happiness, hobbies, achievements, festivities. At HCL,
everyday work is made an enjoyable and fun experience.

HCL Concert Series


Extending the exclusive blend of creativity and excellence from IT to the world of music and
dance, The HCL Concert Series is a tribute to excellence in human endeavor. Every month
people are invited to enjoy four evenings of soul satisfying music or enrapturing dance
performance by some of the best artists in India

Sporting Champions
Cricket, Squash or Golf - one can find them all there in HCL – Its intra-organization and inter-
organization competitions ensure that even the workaholics are involved in playing or cheering at
least. Table tennis in office everyday makes not only the class players pursue their interests, but
also helps the amateurs take a break.

Celebrating Festivities
Celebrations, frolic, carousing, quizzing is all ingrained in HCL. Be it a festival or
commemorating one of them or applauding a team - they do it with a bang - paint the town red.
Thee make Diwali brighter than the lights with stalls, music, antakshiri, dance, and mimicry -
name it and they have it. Their Christmas is warmer than Christmas puddings with Santa Claus,
Xmas trees for all teams and lots of tinsel. Holi or Pongal or Rakshabandhan, all are a way to
celebrate their "unity in diversity".

Innovate at HCL
Innovation is promoted in every part of the organization and the results are seen in the various
examples of innovations that have come from their own employees.

HCL One Awards


To commend the achievements of their people, they raise a toast to the achievers and have a
frolicking party every quarter. Win the Glittering Trophy, Blue parties. Diamond, or an
Acrylic Star for their performance. These rejoicing, reveling moments are not to be missed.

25
Picnics and more at HCL
HCL as a family goes to trips, outings, picnics, movies, river rafting - move away from the work
environment, from the city towards nature - in the lush green environment to rekindle and refresh
their spirit. These adventurous trips help them strengthen their camaraderie.

Case Studies
Being in the business for more than 26 years HCL has rich experiences of executing projects of
varying sizes, complexity and technologies.

CASE STUDIES > Infostructure Services

1. Facilities Management at Government Department

A Govt. Dept. was planning for a major IT initiative including VAT implementation and
implementation of portal preceded. A prerequisite for all these was Data collection and Data
consolidation.

Current situation was that they had Multi-vendor maintenance of IT Infrastructure. They were
facing problems of down time of critical IT equipment, multi vendor co-ordination issues, and
Consumables supply not timely. At the same time they were also looking at Reduction in Total
Cost of Ownership and free Key IT-official from day to day co-ordination issues so that they have
time to focus on new initiative. It was decided to award a facility management contract for
upkeep of their IT -Infrastructure bound by clear Service Level Agreements with the service
provider.

2. Data Center Security for a Private Financial Company

A Private Financial Company was setting up an Internet Data Center (IDC) at their Corporate
Head Quarters to enable E-Securities trading system for their customers to carry out shares
trading over Extranets & Internet. This comprised of:

-Server Farms of Data Center.


- Public access servers in Data Center.
- Internet link to two ISPs.

26
- WAN Links to NSE, BSE.
- WAN Link to their Regional offices.
- LAN within office.
- LAN links from their group companies.
- Extranet VPN.

HCL Infosystems Ltd. with vast experience in designing & implementing complex IT solutions
has done the following activities - design consulting & implementation for making the above IDC
setup of Financial company secure against internal and external threats.

CASE STUDIES > System Integration Projects

1. Federal project on Food & Drug Administration

Objective
The objective is to answer the Information Technology needs of the client for its existing
operations, to reduce the time for existing activities, increase efficiency and provide a vast
database of information at its fingertips. In addition to the above, the client decided to keep
additional information about manufacturers, sellers and their activities.
Solution
The client is able to get information about products / ingredients, manufacturers like products
manufactured, their brand names, plant and machinery details, import / supplier details,
distributor details, CGMP information etc. Through this solution, the client able to cater to the
requirements of various sections / departments like Food, Allopathic, Indian medicines,
Biologics, Medical devices / equipment & Pathological labs, Cosmetics and Veterinary.

2. Federal Project on Driving License Issuance Case Study.


Objective
The objective is to produce high quality driving licenses, to prevent issue of multiple licenses to a
driver, to issue licenses to the public who approach any of the 9 Zonal Offices (earlier, the public
had to visit a specific Zonal Office which covered their geography) and reduction of cycle time
Solution
The client is provided with front-end commissioning & operations part at all 9 zones. HCL
configured the solution which had products / services from multiple vendors. The salient features
of the solution included capturing of Text/Photo/Sign/Fingerprint at the Zonal Office and printing
27
of Text/Photo/Sign/Ultra Violet Logo on card so that licenses cannot be easily duplicated. The
new system offered several benefits to the Transport Department such as On-line information,
Electronic Approval, Process re-engineering to improve speed, single visit to MLO for getting a
license, hence resulting in public convenience, no waiting for card lamination, same day issuance
of renewal / duplicate copy of driving license.

3. Project on branch connectivity of one of the country's largest public sector banks through
WAN
Objective
The objective is to implement anywhere banking countrywide. The client's requirement is to
computerize & connect their 250 branches, so that their customers having account in any of the
250 branches can walk in to any of the other branches for Banking (withdraw / Deposit / DD
making etc.)
Solution
All the branches of a city were linked through Leased line/ISDN link to Regional Computer
Center which inturn was part of the backbone network with linkages to 14 cities. This enabled the
customer for centralized system administration for all the branches. Gateway is also provided for
other RO connectivity via VSAT and leased lines. Besides managing the entire facility at all the
centers and the providing of maintenance support for the Networking equipments, liaisoning with
the product manufacturers for the post installation support for the spares was also provided.

4. Centralized & Anywhere Banking Infrastructure for a leading private sector bank
Objective
The objective is to set up a world class DATA Center for the client's Anywhere Banking
operations and consolidation exercise. The client has more than 312 branches and 38 extension
counters.
Solution
HCL Infosystems developed a complete wide area network solution including design,
implementation and integration while connecting their branches, regional offices and Head
Office.

5.One of South India's Leading Banks


Objective
The objective is to provide Network Consultancy & Implementation for Centralized Banking
28
Solution
The client is provided with interconnectivity of the branches for their centralized banking project.
Besides installing, integrating & commissioning of the project, HCL Infosystems has maintained
a help desk & network management station.

6. India’s leading International Telecommunication Service Provider

Objective
The objective is to implement Gateway Electronic Data Interchange System
Solution
A centralized EDI server is set-up for the client, through which all international telecom traffic is
routed. The project scope included conceptualising the solution, commissioning the necessary
hardware and software, and user training.

7. Data Center Solution To Leading Private Financial Services Company

Objective
The objective of the case is to establish centralized enterprise storage centre.
Solution
Established a Data Center for the client to manage its 56 branches spread all over the country.

8. A Leading Joint Venture Company dealing in Telecommunication career services in the


Asia Pacific Region

Objective
The objective is the Implementation & customization of Billing & Customer Care software.
Solution
A complete billing and customer care is provided to a cellular phone provider in Kolkata, India.
The project included solution configuration, supply and commissioning of hardware and software,
interface to the switch, customizing application software, and user training.

29
History of 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. The highlights of the HCL saga are summarized below:

YEAR HIGHLIGHTS

- Foundation of the Company laid.


1976 - Introduces microcomputer-based programmable calculators with wide acceptance
in the scientific / education community.
- Launch of the first microcomputer-based commercial computer with a ROM
-based Basic interpreter.
1977
- Unavailability of programming skills with customers’ results in HCL developing
bespoke applications for their customers.
- Initiation of application development in diverse segments such as textiles, sugar,
1978
paper, cement, transport.
- Formation of Far East Computers Ltd., a pioneer in the Singapore IT market, for
1980
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

30
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.
- Bank trade unions allow computerization in banks. However, a computer can only
run one application such as Savings Bank, Current account, Loans etc.
- 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
1985
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.
- Zonal offices of banks and general insurance companies adopt computerization.
- Purchase specifications demand the availability of RDBMS products on the
1986 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.
- 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).
1991 - 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.
- HCL acquires and executes the first offshore project from IBM Thailand.
1994
- HCL sets up core group to define software development methodologies.
- Execution projects for Germany and Australia.
1995
- Begins Help desk services.
- Sets up the STP (Software Technology Park) at Chennai to execute software
1996 projects for international customers.
- Becomes national integration partner for SAP.
31
- Kolkata and Noida STPs set up.
1997
- HCL buys back HP stake in HCL Hewlett Packard.
1998 - Chennai and Coimbatore development facilities get ISO 9001 certification.
- Acquires and sets up fully owned subsidiaries in USA and UK.
1999 - Sets up fully owned subsidiary in Australia.
- HCL ties up with Broad vision as an integration partner.
- 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.
2000 - 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.
-Launched Pentium IV PCs at below Rs 40,000.
2001
-IDC rated HCL Infosystems as No. 1 Desktop PC Company of 2001.
-Declared as Top PC Vendor by Dataquest.
-HCL Infosystems & Sun Microsystems enters into a Enterprise Distribution
2002 Agreement.
- Realigns businesses, increasing focus on domestic IT, Communications & Imaging
products, solutions & related services.
- 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.
2003
- 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.
2004 - 1st to announce PC price cut in India, post duty reduction, offers Ezeebee at Rs.
17990.
- IDC India-DQ Customer Satisfaction Audit rates HCL as No.1 Brand in Desktop
PCs.
- Maintains No.1 position in the Desktop PC segment for year 2003.
32
- Enters into partnership with Port Wise to support & distribute security & VPN
solutions in India.
- Partners with Microsoft & Intel to launch Beanstalk Neo PC.
- Becomes the 1st company to cross 1 lac unit milestone in the Indian Desktop PC
market.
- Partners with Union Bank to make PCs more affordable, introduces lowest ever
EMI for PC in India.
- Launched RP2 systems to overcome power problem for PC users.
- Registers a market share of 13.7% to become No.1 Desktop PC company for year
2004.
- Crosses the landmark of $ 1 billion in revenue in just nine months.
- Launch of HCL PC for India, a fully functional PC priced at Rs.9, 990/-.
- Rated as the No.1 Desktop PC company by IDC India –Dataquest.
- 'Best Employer 2005' with five star ratings by IDC India -Dataquest.
- 'The Most Customer Responsive Company 2005'.
- IT Hardware Category by The Economic Times -Avaya Global Connect.
- Top 50 fastest growing Technology Companies in India' & 'Top 500 fastest
Growing Technology Companies in Asia Pacific' by 'Deloitte & Touché'. By
'Deloitte & Touché'.
- '7th IETE -Corporate Award 2005' for performance excellence in the field of
Computers & Telecommunication Systems by IETE.

2005

- 'Best Bhoomi Brand 2005' by 360 magazine


-in the PC category.
-in the LCD Monitor category.
- India 's 'No.1 vendor' for sales of A3 size Toshiba Multi Functional Devices for
the year '04 -'05 by IDC.
- Toshiba’ Super Award 2005 towards business excellence in distribution of Toshiba
Multifunctional products,
- Strategic Partners in Excellence' Award by Infocus Corporation for projectors.
- 'Most valued Business Partner' Award for projectors by Infocus Corporation in
2005.

33
- 75, 000+ machines produced in a single month.
- HCL Infosystems in partnership with Toshiba expands its retail presence in India
by unveiling 'shop Toshiba'.
- HCL Infosystems & Nokia announce a long-term distribution strategy.
- HCL the leader in Desktops PCs unveils India's first segment specific range of
notebooks brand - 'HCL Leap tops'.
- IDBI selects HCL as SI partner for 100 branches ICT infrastructure rollout.
- HCL Infosystems showcases Computer Solutions for the Rural Markets in India.
- HCL Support wins the DQ Channels-2006 GOLD Award for Best After Sales
Service on a nationwide customer satisfaction survey conducted by IDC.
- HCL Infosystems First in India to Launch the New Generation of High
Performance Server Platforms Powered by Intel Dual - Core Xeon 5000 Processor.
- HCL Forms a Strategic Partnership with APPLE to provide Sales & Service
Support for iPods in India.
- HCL Infosystems rated as number one Desktop PC Company by IDC, sixth year
successively.
2006
- HCL Infosystems sustains its commercial Desktop PC leadership for the fifth
consecutive year.
- HCL launches "trusted ICT infrastructure platforms" for the BPO-ITeS segment.
- HCL launches India's first High Performance Enterprise Server Platforms
powered by dual core Intel itanium processors.
- HCL creates Dual Core Xeon Server at a price point of RS. 43,900/-

- HCL completes 30 years in India.


- HCL in association with The Music Academy, Madras brings 'HCL Concert
Series' to Chennai City.
- Enters into partnership with Casio.
- HCL establishes its manufacturing facility at Uttranchal.
- HCL launches Beanstalk 2007 collection. A range of four new HCL Beanstalk
Digilife-enablers, Beanstalk Nano, Beanstalk Slim, Beanstalk Lifestyle & Beanstalk
Dominator.
2007 - HCL introduces eco-efficient Notebook PCs complying with RoHS directive.

34
- HCL unveils initiative to create industry ready ICT professionals- launches HCL
career development centers'.
- HCL launches ‘data center in a box’ - a simplified IT infrastructure solution in a
‘box’ targeted at small and medium enterprises.
- Kodak and HCL ink agreement to distribute digital cameras in India.
- HCL launches India’s first multilingual POS printer HCL star - TSP 700,
designed exclusively for the needs of rural retailers.
- HCL unveils enterprise class 16-core server - India’s first server with 16
computing cores in a 7- inch (4u) form factor.
- Launches a new range of eco-efficient desktop PCs, complying with RoHS
directive.
- HCL launches NETMAX; suite of networking products and solutions expands its
portfolio for emerging enterprises.
- HCL announces '360-degrees technology refresh program'- new initiative aimed at
capturing latest trends in technology and delivering them to Indian enterprises.
- HCL announces launch of its workstation 2008 series for MCAD and DCC
professionals.
- HCL unveils the future of personal computing. Launches next generation, ultra
portable, Sub Rs. 14,000/- laptops MiLeap Series for the first time in India.
2008
- HCL strengthens its BFSI System Integration Portfolio - Acquires a niche
Banking Software Product Company.

Guiding Principles

35
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 shall 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 honour all commitments
• We shall be committed to Quality, Innovation and Growth in every endeavour.

Growth

36
HCL sales growth beats TCS, Infosys.

HCL Technologies attributed its growth to increased business volumes and higher billing rates in
the quarter, which is the second in its current financial year. Noida-based HCL Technologies Ltd,
India’s fifth largest software services firm by revenues, reported a 6.3% rise in revenues to Rs1,
817 crore for the December quarter, beating the business growth rate at its much larger peers Tata
Consultancy Services Ltd or TCS and Infosys Technologies Ltd.
HCL Technologies attributed its growth to increased business volumes and higher billing rates in
the quarter, which is the second in its current financial year. TCS grew its latest quarter revenues
by 5.3% over the preceding quarter, while Infosys reported a 4.5% expansion.
Net profits at HCL Technologies, at Rs333 crore, were up 7.9% on a quarterly basis. The
revenues and profits at TCS and Infosys are about four times that of the HCL firm.
Though business for the firm from the US grew 8.9% this quarter, “the growth this quarter was
led by Asia Pacific, particularly Japan and Europe (Australia, New Zealand),” said Vineet Nayar,
chief executive and president at HCL Technologies.
Pankaj Kapoor, who tracks the tech sector at ABN AMRO Asia Equities (India) Ltd, said a
weak outlook on the US economy would weigh on the Technologies stock in the next three
months. Shares of the firm HCL closed at Rs267.60, down 0.28% on the Bombay Stock
Exchange.
HCL Infosystems celebrates its 30th Year with consolidated revenue crossing Rs 10,000
crores mark. Revenue of Rs 11455 crores (USD 2.6 Bn) grows at 47%.

37
FY 06 PBT at Rs 385 crores (USD 86 Mn), grows at 30%

HCL Infosystems Ltd. (HCL Insys), India's premier Information enabling company, announced
its audited results for the financial year ended June 30, 2006.

The Company reported consolidated revenue of Rs. 11455.0 crores (USD 2569.5 Mn.) during the
year ended June 30, 2006 as against Rs. 7787.2 crores (USD 1746.8 Mn.) in the previous year, a
growth of 47%. Profit before tax is reported at Rs. 385.3 crores (USD 86.4 Mn.) as against Rs.
296.0 crores (USD 66.4 Mn.) in the previous year, a growth of 30%.

Revenue from the computer systems business is Rs 2381.4 crores (USD 534.2 Mn.) as against Rs
1970.9 crores (USD 442.1 Mn.) in the previous year, a growth of 21%. Profit before interest and
taxes are at Rs 125.5 crores (USD 28.2 Mn.).

Revenue from the Telecommunication & Office Automation business is Rs 9049.8 crores (USD
2030.0 Mn.) as against Rs 5779.3 crores (USD 1296.4 Mn.) in the previous year, a growth of
57%. Profit before interest and taxes are at Rs 244.0 crores (USD 54.7 Mn.).

Basic EPS during the year ended June 30, 2006 is Rs. 16.7 (USD 0.4) per share of Rs. 2/- each as
compared to Rs 13.7 (USD 0.3) per share during previous year.

The Company reported consolidated revenue of Rs. 3149.7 crores (USD 706.5 Mn.) during the
quarter ended June 30, 2006 as against Rs. 2198.5 (USD 493.2 Mn.) crores in the previous year, a
growth of 43%. Profit before tax is reported at Rs. 99.8 crores (USD 22.4 Mn.) as against Rs. 75.9
crores (USD 17.0 Mn.) in the previous year, a growth of 32%

Computer systems business is cyclical in nature and is subject to seasonality specially based on
government buying pattern, which normally peaks in the Jan - March quarter.

Revenue from the computer systems business is Rs 653.0 crores (USD 146.5 Mn.) as against Rs
534.6 crores (USD 119.9 Mn.) in the corresponding quarter of the previous year, a growth of
22%. Profit before interest and taxes are at Rs 33.8 crores (USD 7.6 Mn.).

38
Revenue from the Telecommunication & Office Automation business is Rs 2489.7 crores
(USD 558.5 Mn.) as against Rs 1655.3 crores (USD 371.3 Mn.) in the corresponding quarter of
the previous year, a growth of 50%. Profit before interest and taxes is at Rs 63.0 crores (USD
14.1Mn.)

The Board of Directors recommended a final dividend of Rs 2/- per fully paid up share,
taking the total dividend for the year 2005-06 to 400%.

The turnover of the company on "standalone" basis during the year ended June 30, 2006 is Rs
2381.4 crores (USD 534.2 Mn.) and the Profit after tax is reported at Rs. 113.2 crores (USD 25.4
Mn.). The company reported a turnover of Rs. 653.0 crores (USD 146.5 Mn.) during the quarter
ended June 30, 2006.The Profit after tax is reported at Rs. 26.9 crores (USD 6.0 Mn.).

USD Conversion Rate 44.58

Announcing the results, Mr. Ajai Chowdhry, Chairman and CEO, HCL Infosystems, said, "Yet
again, this year has been a landmark year for all of us at HCL, as we continued to make bold
inroads to strengthen our technology leadership and conquer new avenues for growth. Foraying
into notebooks, creating 'technological verticals' by developing industry-specific products,
continuing developmental initiatives to enhance overall PC penetration and drawing the future
roadmap to spearhead digital lifestyle era in the nation - it has been a busy year of achievements
& milestones for HCL. And as we enter into the current year, which incidentally marks our 30
years of pioneering technology, we would continue to define the contours of Indian ICT industry-
even more passionately.”

The 32 years Milestone:

39
HCL touched another milestone along with touching the lives of so many Indians, by completing
32 years of its operations on 11th Aug 2008. Last thirty-two years have witnessed tremendous
changes in India - in fields of economy, business as well as technology. And keeping pace with it,
HCL today has already established its leadership in the IT infrastructure & technology
enablement segment.

Past Deals

Customer Date Size Deal details


2008-00-
Fonterra Fonterra New Zealand LTD
00
Zep Inc 2008-04- Greenfield SAP ERP Financials Implementation
40
01
North Dakota 2008-01- Claims administration technology implementation using
state 29 Valley oak iVOS claims administration software

2008-01-
Wiltshire Police $4 million Mobile and remote working solution provider for five and
23
half years
2007-12-
Merck Strategic support to Merck's key IT initiative
18
2007-10-
SolFocus Completion of Oracle 12i implementation
31
2007-09-
Celestica SAP deployment and support
17
Offshore Development Center (ODC) to provide software
2007-07-
Konica Minolta services for KM's Multi Function Peripherals (MFPs),
11
printers and medical equipment business lines
300
2007-06- Software, hardware and mechanical engineering for full
Rockwell Collins Engineer
09 product lifecycle development
team
Alenia 2007-06- Engineering services that will support the improvement of
$15 million
Aeronautica 18 the C-27J Spartan production line
60
Smiths 2007-02-
engineer Engineering services
Aerospace 27
team
2007-02-
Microsoft Migration and project services
09
100
2007-02- Software, hardware and mechanical engineering for full
Crane Aerospace engineer
08 product lifecycle development
team
Application optimization, including development,
maintenance and support (across all platforms) and remote
2006-12- $200
Skandia infrastructure
20 million

Management
IT Consulting, Application Development and end-to-end
2006-07-
Teradyne $70 million Application and IT Infrastructure Management involving
13
data center, network, security and help desk services
MSC Software 2006-03-
One-Oracle” global rollout Oracle 11i applications project
Corporation 24

41
Co-sourcing deal to provide system development,
2006-01-
DSG application
International
26
Delivery, infrastructure support and maintenance services
Application and data center services for business-critical IT
2005-11-
AutoDesk
10
Applications, including SAP, Siebel, Informatica
Hamilton 2005-08-
Product engineering services
Sundstrand 24
2005-02- Software development partner for the 787 Dreamliner
Boeing
08 program
AA Insurance 2004-12-
BPO services
Services 09
2004-07- IT infrastructure management, maintenance and support
AMD
23 of global IT applications
2004-06- Embedded software for the System Data Acquisition
Airbus
16 Computer of the Airbus A340 Flight Warning System

Achievements

Key Achievements
• HCL designed and introduced a microcomputer in 1978, same time as Apple and three
years ahead of IBM PC – literally.
• Till date, HCL is the largest manufacturer & marketer of desktops in the Indian IT market.
• HCL was the first PC manufacturer to develop specific products for rural India and has a
repertoire of pioneering technology.
• HCL has perhaps the widest ICT offerings under a single brand umbrella - ranging from
state-of-the-art PCs to high-end settings.
• HCL indigenously developed an RDBMS, a Networking OS and Client Server architecture
in 1983.
• HCL introduced fine-grained multi-processor Unix-3 years ahead of "Sun" and "HP".

42
Some Other Achievements

HCL Technologies opens new development center in Sydney

HCL Technologies opened a new global development center in Sydney, a move that is part of
HCL's global delivery strategy to offer customers support from various locations around the
world.

"Our success has been built on key markets such as Australia and New Zealand, where we have
been operating for over a decade. It is the area with the highest potential for growth and is
already the fastest growing region in HCL's global network. We have been experiencing 80
percent growth year-on-year in the Asia Pacific and Australia and New Zealand regions and
expect this to continue," said Brian Pereira, head, Australia and New Zealand, HCL
Technologies.

Besides financial institutions, leading retailers and waste management organizations, some of the
leading educational institutions like Australian Graduate School of Management (AGSM) and the
Melbourne Business School (MBS) rank among HCL's clients.

"We see real value in commercial firms like ours partnering with Australia's leading education
institutions. We believe that sharing our practical experiences with Australia's future business
leaders is essential in preparing them for the challenges that lay ahead," Pereira said.

HCL Infosystems takes a new Leap with Intel Atom

43
Taking forward its initiative of launching the first ultra portable notebook in India. HCL
announced the launch of new MiLeap, the next in the family of MiLeap ultra portable Leaptops,
based on Intel Atom technology:

 With this launch, Indian customers have the largest range of ultra portable PCs to
choose from.

 Intel Atom launch compliments HCL strategy of producing environment friendly PC.

 HCL also launched a new desktop PC 'Neutron' based on new Intel Atom technology,
occupies 85% less space and consumes 76% less energy.

Keeping its commitment to Indian customers of bringing them the very best in latest technology,
HCL Infosystems Limited, announced shipment of its PCs based on Intel Atom that was launched
world wide, yesterday by Intel. Atom is Intel's smallest processor built with the world's smallest
transistors. Based on Intel Atom, HCL also announced the launch of a new desktop PC and the
next variant of MiLeap, the ultra portable range of leaptops.

Earlier, HCL launched ‘MiLeap', country's first ultra mobile PC for the consumer who needs to stay
connected, informed, entertained and productive-anytime and anywhere. MiLeap's affordability,
lightweight and compact size makes it very convenient to use while on the move. Extending its offerings
under MiLeap range of ultra portable PCs, HCL has introduced this new variant of MiLeap based on
Intel. The launch makes ‘MiLeap' one of the most comprehensive range of ultra portable laptops in the
world, offering entry level models for first time users, mid range for the regular and more frequent users;
and high end touch screen tablet MiLeap for professionals and tech geeks, offering a complete computing
experience on-the-go.

44
The new MiLeap, the ultra portable range of Leaptops from HCL comes with features, which offers
complete notebook functionality packed in an ultra portable form factor. Weighing just 1.2 Kg this new
MiLeap comes with a 10" screen, user-friendly keyboard and integrated web camera. Taking forward the
legacy of India's first ultra portable laptop this fully functional notebook comes with a 1 GB RAM and 80
GB hard disk with fully functional Windows operating system, thus making it ideal for students, first
time buyers and on-the-go professionals.

Commenting on the launch Mr. George Paul, Executive Vice President, HCL Infosystems Limited, said:
"Taking forward our commitment of developing environment friendly products and to bring the best in
technology to Indian customers, we introduce the new power efficient range of PCs based on Intel's latest
Atom Processor. HCL have been jointly working with its partners towards propelling wider acceptance
of IT amongst the masses with a strong commitment towards offering innovative technology at affordable
prices. Taking the new technology initiatives towards Greener IT, Intel's Atom processor complements
HCL's green initiatives as they are built for lower power consumption. We are happy to offer such
innovative technology, to continue our quest for having a healthier environment and leveraging the
power of IT, to empower people across India"

The new range of PCs and MiLeap will be available nation wide at all HCL Digilife stores, large format
retailers and other HCL dealer outlets. As a commitment to its ongoing environment initiatives, HCL
plans to introduce more products with lower environment footprint. These will also be more efficient and
affordable to the masses.

Indian IT firm HCL on Forbes' cover

HCL Technologies features on the cover page of Forbes' forthcoming issue, with the magazine
tracing the journey of the firm as India's first computer company in the 1970s to growing into a
billion dollar enterprise today.

Forbes has given detail description of how HCL last year registered revenues of about $1 billion,
and how with the company's market capitalization doubled in two years, its chairman and chief
executive Shiv Nadar has become one of India's richest men.

45
The issue slated to hit the stands in New York Saturday, also talks about how the company had
faced a crisis when almost 50 of its important clients dropped out, causing a loss of about $80
million.

It elaborates on how the company, under the leadership of Nadar and Vineet Nayar, president,
HCL, has undergone rapid changes to carve a niche for itself.

It talks of how Nadar, a young man in 1970s, had an inkling he could emerge as a successful
entrepreneur in digital business and started what was then known as Hindustan Computers Ltd.
(HCL), and also tells of the difficulties he faced in obtaining licenses.

Eventually it grew to the CL HCL of today - a billion dollar enterprise, employing over 40,000
people globally with a kitty full of blue chip companies.

HCL Tech rides upgrade wave

Delhi-based IT services firm HCL Technologies extended its winning streak to the fourth straight
session, riding a wave of positive recommendations from leading research houses. Dealers
attributed the buying interest at the counter to better than expected showing by the company
during its fourth quarter (April-June 02).

The stock was the star performer among Sensex issues, rallying 7.1 per cent to close at Rs 218,
after testing an intra-day high of Rs 224.75.

`In the past, the company’s aggressive growth strategy by way of tie-ups and acquisitions has
raised quite a few questions among the analyst community. But with some of the acquisitions
beginning to contribute to the topline, critics seem to be having a fresh look at the stock.

Investment bank Credit Lyonnais Securities has raised its rating on the stock to outperform,
saying that the worst could be over, as far as the company was concerned.

‘HCL Tech’s Q4 FY02 revenue growth of 6.9 per cent quarter on quarter (QoQ) was higher than
expectations. However, profits declined 50 percent QoQ on account of lower other income and
exceptional provisioning. After three quarters of sequential decline, HCL Tech`s core business
turned around and reported a robust 5.8 per cent QoQ growth.

46
Moreover, the joint ventures and acquisitions have started contributing to the topline after initial
hiccups. It is believed that the worst is over for the company and incremental outlook is positive.
Trading at 11 times FY03 (estimated) earnings, HCL Tech’s valuations are the lowest among
peers, even as the earnings forecast is conservative. We are upgrading the stock to outperformer,
say analysts Aniruddha Dange and Bhavtosh Vajpayee, in a note circulated to clients today.

The equity research arm of Deutsche Bank has projected a 12-month price target of Rs 340 for
HCL Tech and has assigned a buy rating to the stock.

‘HCL Technologies’ Q4 FY02 results suggest the worst is now behind it. The company posted a
six per cent QoQ revenue growth in its organic business, after two quarters of decline, and a 17
per cent QoQ revenue growth and improving margins for two of the largest inorganic initiatives
so far - DSL and HCL N.I.

‘The healthy revenue growth should continue, in our view, but this will not show in EPS figures
because of lower interest income - as was the case in Q4 FY02. We forecast a 22.8 per cent
growth in revenues and 18.8 per cent growth in EBITDA for FY03, resulting in 5.6 per cent
growth in net profit (before provisions) for that year’ says IT analyst Bhupinder Ahuja.

Awards and Accolades

• HCL received The Platinum Certificate of Excellence Award in August 2008 from HDFC
Standard Life Insurance Co Ltd. in appreciation of its contribution & efforts towards
continued success of HDFC SLI.

47
• HCL won Gold Partner Award for achieving sizable business revenue INFOCUS has
recognized HCL as its Strategic Partner.
• HCL won Emerald Award for Best All round Performance Over the Years.
• HCL won The Most Innovative Franchisee Award by Franchise Plus in Feb 08.
• HCL won The Most Supportive Franchisor Award by Franchise Plus in Feb 08
• Mr. Ajai Chowdhry, Chairman & CEO of HCL Infosystems Limited, honoured with 'CEO
of the year 2008 ' award by IT People Awards for excellence in IT.
• Mr. Ajai Chowdhry, Chairman & CEO of HCL Infosystems Limited, was declared ‘IT
Person of the Year 2007’ by Dataquest.
• HCL won The Best Retailer Award in Consumer Durables category by Asia Retail
Congress in Dec 07
• HCL won awards in ‘Environment Management’ and ‘Quality’ categories at the Elcina-
Dun & Bradstreet Awards for Excellence in Electronics, 2006-07.
• India’s Most Preferred Personal Computer Brand by CNBC AWAAZ Consumer Award
2007.
• HCL received three Channels Choice 2007 awards for Relationship Management, After
Sales Support & Commercial Terms from DQ Channels, based on an IDC channel
satisfaction survey.
• HCL Infosystems won Brand-of-Excellence Award at VARIndia Forum 2007.
• HCL bagged IMM 'Top Organization Award 2007' for Excellence at 34th World
Marketing Congress.
• HCL was awarded ‘Amity Corporate Excellence Award 2007’ for its distinct vision,
innovation, competitiveness and sustenance.
• HCL won ‘Toshiba Colour Copier Champion Award 2007’ for improving overall customer
approach and better technical capability.
• HCL won the ‘Best Indian Branded PC’ & ‘Best IT Retail Company’ award at the 6th
VARIndia Star Nite Awards 2007.
• HCL has been recognized by Nokia, consecutively for last two years with the ‘Nokia
Excellence Award’ for Sales & Distribution, Asia Pacific 2007.
• HCL Digilife retail chain won the 'Most Admired Retailer of the Year' award in Consumer
Durables and Electronics category at the 2007 IMAGES Retail Awards.

48
• HCL received “Best In Category Award” for HCL Digilife Stores and Special Award for
“Innovation and Technology” for its’ ePOS division at the Franchise and Star Retailer
Awards 2007
• HCL Infosystems was presented with the ‘Top Organization-2006’ award by Institute of
Marketing Management (IMM) in recognition of its innovation in marketing management.
• HCL Infosystems has been voted as the ‘No. 1 PC Vendor’ consecutively for last six years
by IDC – Dataquest.
• HCL bagged the Dun & Bradstreet Awards 2006 for ‘Top Performance In The Computer
Hardware & Peripherals Sector’.
• HCL won the 'Amity Corporate Excellence Award 2006' in the Computer hardware
category.
• HCL among the Top 3 IT companies for the last 3 years, DQ & IDC, Best Employer
Survey, ‘Best employer 2005’ with Five Star Ratings.
• ‘Top 3 IT Hardware Companies’ ranked in India’s 100 Most Valuable Brands by
Planman Consulting & ICMR Research.
• Deloitte Technology, Media & Telecommunications ranked HCL among the top Fast 500
Asia Pacific 2006 program.
• Business Standard ranked HCL at no. 21 in BS 1000 ranking in 2006.
• ET ranked HCL amongst, ‘Top 50 in ET Top 500 Companies’ Listings for 2006.
• HCL has been ranked amongst the ‘Top 5 Groups’ in the DQ Top 20 and ‘Top 3 Most
Preferred Brands’ in CNBC Awaaz Survey, 2006.
• HCL ranked amongst the Top Three Major Players on VPN Service Provider by Avaya
Global Connect.
• India’s ‘No. 1 Vendor’ for sales of A3 size Toshiba Multi Functional Devices for the year
2005-06 by IDC Dataquest.
• ‘The Most Responsive Company 2005’ – IT Hardware Category by The Economic Times –
Avaya Global Connect.
• Strategic Partners in Excellence Award by Infocus Corporation for projectors.
• ‘Most Valued Business Partner’ Award for Projectors in 2005.
• Toshiba ‘Super Award 2005’ & ‘Platinum’ Award 2004 towards business excellence in
distribution of Toshiba Multifunctional products consecutively for 3 years in a row.
• India’s 'No. 1 vendor' for sales of A3 size Toshiba Multi Functional Devices for the year
2004-05 by IDC Dataquest.

49
• ‘7th IETE – Corporate Award 2005’ for performance excellence in the field of Computer &
Telecommunications Systems.
• Best Bhoomi Brand 2005’ by 360 magazine in the PC Category and in the LCD Monitor
Category.

Key Initiatives of HCL

 In one of the most defining initiative, HCL announced its robust foray unleashing Digital
Lifestyle revolution in the country. Consolidating its comprehensive offerings in digital
technology - which includes cell phones, media center PCs, MP3 cameras, host of digitized
office automation solutions - HCL entered into strategic tie-ups with Dishtv (Zee TV) &
Apple to render the support of its extensive distribution & service strength to Dishtv's DTH &
Apple's iPod - thus offering a complete spectrum of digital technology solutions. Besides an
extensive product offering, HCL has plans for an extensive pan-India establishment of HCL
'Digital Lifestyle' stores. These stores would offer a complete & 'experiential' panorama of
digital technology products - ranging from a cell phone to an integrated network solution.
 Continuing its technology leadership, HCL also became the first Indian PC manufacturer
to launch products with revolutionary technologies such as Intel 'Dual-2-Core' processors,
Intel Itanium processors and Intel Xeon 5000 series processors. Further, it created a new
industry benchmark by expanding the market through proactive identification & development
of products to suit specific 'industry segments' - such as revolutionary BeePOS solutions for
the retail sector, SD2 Technology enabled PCs & host of 'trusted technology infrastructure'
products for the Indian BPO-IteS segment and even in notebooks - where HCL became the
first-ever laptop manufacturer to offer 'segment specific' notebooks.
 HCL retained the market leadership in total desktop shipments in FY'05-06 (for the fifth
year in row) and registered 12% faster growth than the market.
 In the Corporate business space HCL showed remarkable growth, winning new customers
from leading corporates, education, defence, insurance majors, private & public sectors, banks
etc.
 HCL was selected by IDBI Ltd, Mumbai to provide the ICT infrastructure for its 100+
new retail branches. This system integrated ICT platform addressed the total computing,
networking and office automation needs of IDBI for the branches.

50
 In the networking space, HCL has rolled out the MPLS technology in the backbone in
partnership with Cisco which will enable to offer Technology Agnostic Network Services,
covering IP, ATM / FR and MPLS, meeting customers' precise application requirements.
 The imaging business of HCL showed a remarkable growth over the last year. The
company maintained the No.1 position in market share in the Multi Function Devices and
Multimedia Projectors markets. It won the largest Multi Function Devices order deal of the
year from Tamil Nadu Police.
 A number of new products and solutions were added to HCL's imaging products portfolio
such as Laser Printers, Production Plan Printers, Video Conferencing Solutions, Video Walls,
AV System Integration solutions etc. In the quarter gone past, HCL signed up with Hitachi to
distribute their plasma and projectors to consolidate the existing market share.
 With phenomenal additions in the GSM subscriber base in the last quarter, the company
continued to witness growth.

Services Provided by HCL

HCL's Medical Device Practice

HCL's Medical Device practice at HCL is a dedicated micro-vertical that acts as a One-stop shop
for medical device manufacturers. HCL is a recognized leader in the medical device outsourcing
space, providing fast and cost effective end-to-end solutions across a variety of Class 1, 2 and 3
devices.
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HCL offers "Concept to Manufacture" Medical Device R & D & IT Outsourcing Services in
areas such as: concept design, prototype development & validation; pre-clinical and clinical
development; manufacturing and plant automation; sales & marketing; enterprise IT functions.
Practice Highlights

• Largest Dedicated Medical Devices practice amongst Indian Outsourcers.


• First Indian service provider to be ISO 13485 certified.
• HCL's dedicated Medical Quality Management System is a mature and robust system.
Several independent auditors and customers have audited it over the last several years.
• HCL compliance Lab is certified for ISO/IEC 17025.
• 19 Top Medical Device customers.

BPO Services

HCL's BPO division is one of the leading offshore BPO companies in India with proven
credentials:

• Won the largest engagement in Indian BPO history


• The largest provider of Telecom BPO services in Asia
• First Indian BPO to be COPC certified for Collection Services

HCL BPO Services represents one of the most significant strategic business extensions and
investments to date. Consistently ranked among the top ten call centers in India, HCL BPO
Services operates out of various locations in India, as well as Malaysia and Northern Ireland. Its
Belfast Delivery Center offers multi-lingual support in eight European languages - Dutch, French,
German, Norwegian, Swedish, Spanish and Portuguese. HCL BPO Services have been ranked
among the top ten call centers in India consecutively for three years.

The focus on and commitment to BPO is based on the following assets and attributes:

• Global Client Base & Relationships


• Global Presence & Reach
• Related Technology Domain Expertise

52
• Relevant Industry Practices

Enterprise Application Services

HCL’s Enterprise Application Services line of business is focused on providing package and
platform-led services ranging from blue printing, development, deployment, global rollouts,
helpdesk support, to application maintenance in areas such as ERP, CRM, SCM, and Middleware.
The EAS group uses a platform-focused approach to provide technology-based business
optimization.

Technology-based business optimization is the cornerstone of HCL’s enterprise applications line


of business. This optimization is achieved in two ways:

• Stage-based offerings
• Process-driven optimization

Stage-based offerings are focused on application consolidation, global single instance, platform
development, and service enablement, while Process-driven optimization deals with processes
like partner integration, unified customer view and single sign-on to deliver business
optimization.

Business Application Consulting & Software Services

HCL offers services ranging from custom application development, deployment, and integration
to corrective maintenance, new releases management, and back-up recovery management.
HCL provides a multi-service platform that is a mix of customized application services with other
key services like packaged application services, remote infrastructure management, and enterprise
transformation services.

KEY STRENGTHS

• More than 10 000 professionals and consultants with domain and technology
expertise supporting more than 100 clients spread across almost all geographies.

53
• Dedicated CoEs (Centre of Excellence) in Enterprise Content Management,
Independent Verification and Validation, e-Business, Data Warehousing, and Business
Intelligence, NET, J2EE etc
• Technology Partnerships nurtured with leading global solutions providers like
Microsoft, TIBCO, Web Methods, Oracle, Digite, IBM, SUN Microsystems etc
• Vast resource in legacy technologies and a large repository of legacy management
tools such as database conversion tools, language conversion tools, and impact analysis
tools.
• 100% transparency to clients through CXO dashboard for online SLA tracking and
status reporting.

Enterprise Transformation Services

HCL’s Enterprise Transformation Services (ETS) assists forward-looking customers to develop a


transformational roadmap and an execution plan that escort them to the business world of
tomorrow. HCL ETS' vision is to help customers manage the extent of change brought about by
business initiatives and growth, and to commit to results, in an accelerated time frame, through
transformation across key facets like business, technology, applications, and data.

HCL partners with customers and helps identify the initiatives driving change, manage the
transformation process, and implement supporting technology solutions that add value to the
organization. HCL takes leverage of its world-class capabilities in design, quality systems, and
processes, coupled with a strong presence in key domains like Financial Services, Hi-tech,
Manufacturing, Retail, Life Sciences and Healthcare, and Media & Entertainment, to offer a
broad range of end-to-end services that respond to the full spectrum of challenges impacting
organizational transformation.

R&D and engineering Services

HCL offers comprehensive range of R&D and Engineering services to component vendors,
OEMs, ODMs and ISVs across multiple industry segments and domains. It has a proven track
record in providing “end to end solutions” and ability to consistently deliver complex and critical
products.

54
HCL's ERS Highlights

• Customers: More than 245 customers across Telecom & Networking, Medical
Devices, Consumer Electronics, Semiconductor, Manufacturing, Aerospace, Automotive,
Servers, Storage, Security, Operating Systems, and Contract Manufacturing
• Depth through the value chain: Engagements with OEMs, EMS companies,
Component Vendors (Processor Companies, Auto and Aero Component Vendors),
Standards bodies (SNIA, WiMAX, powerpc.org)
• Breadth of service offerings: -
o Hardware Engineering
o Embedded Engineering
o Mechanical Engineering
o Software Product Engineering
• Domain-specific Processes
o Certifications - ISO 13485, AS 9100
o Compliance – DFR, FDA, MDD; FAA, DO178B, DO254

IT Services

HCL's Infrastructure Services Division (ISD), a part of old HCL enterprise, is India's leading
IT services provider. HCL ISD is focused on addressing the growing demand for the cost-
effective management of technology infrastructure across geographically dispersed locations.

With a mission to develop innovative solutions for enterprises worldwide, the company
pioneered a unique model for “Remote IT Infrastructure Management” that enables customer
organizations to achieve superior infrastructure performance and significantly reduced costs.

Business Benefits

HCL’s Infrastructure Management services are inclined towards delivering specific benefits
that matched to the business objectives of its customers. Its three decade long expertise and
extensive experience has helped it in delivering business benefits like: -

• Flexibility
55
• Quality and Process Edge
• Domain Expertise and dedicated skill-sets
• Visibility and Control
• Proactive Problem Solution

HCL's Banking, Financial Services and Insurance Group

HCL Technologies' Banking, Financial Services and Insurance Group are built on domain
competencies spanning Retail and Corporate Banking, Capital Markets and Insurance.
Partnering with this large financial institution, HCL has delivered significant
transformational projects that go beyond cost reduction, offering value additions through
productivity gains and value multiplication through redesigned and reengineered processes.
HCL's Retail and Corporate Banking Services practice is aligned on the basis of the
expertise and capabilities the company has acquired in the various micro-verticals of core
banking, loans and mortgages, treasury and cash, trade finance, cards, multi-channel and
private banking.

The company's Global Insurance Practice, driven through a dedicated Insurance Service
Development Centre, has proven delivery capabilities in Life Insurance and Pension,
Property and Casualty Insurance (Non-life insurance) and Reinsurance.

Some other Service Offerings at HCL

HCL's service offerings offer solutions in areas like:

Concept, Design, Prototype and Validation: The company engage with customers from
idea generation stage to design and development, New Product Manufacturing and
Implementation, compliance testing, Independent validation & verification, Prototype
Development.

Pre-Clinical and Clinical: HCL Clinical development offerings help people reduce their
clinical trial and data management costs with unique service offerings like clinical data
management and data analytics services.

Regulatory Compliance: HCL’s regulatory compliance services help people achieve


56
approvals at a faster pace with lower TCO. It helps in ensuring compliance towards
validation of all applications and meeting quality policy implementations. It also supports in
automating the Regulatory submissions for marketing authorization of Medical Devices.

Manufacturing IT: Manufacturing and plant automation services offered by HCL helps its
customers reduce TCO, achieve regulatory compliance, decrease time to market and enhance
productivity.

Sales & marketing: HCL's consulting services, Sales support solutions, Sales Force
Management and Marketing Management services help reduce its customer’s sales &
marketing spends.

Enterprise IT: HCL's customized ERP, Middleware and Content management solutions
help people transform their business and create an integrated IT environment. The
Enterprise’s Consulting services focus on improving its customer’s enterprise IT
performance through analysis of existing business problems and development of Roadmaps
and Business Strategies.

Obsolescence Management & Legacy IT: HCL offers Active product Support, End of Life
(EOL) services, globalized Life Cycle services and regulatory compliance services that aim
at extending the maturity stage of the product life cycle of the customers.

Product Range

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' products offerings include everything from high-end enterprise level servers for
mission critical applications to multimedia home computers.

One may be a large multi-location company exploring solutions to e-enable his/her


organization or one may be a new born rising star looking for someone for IT Planning or
setting up one’s IT Infrastructure, HCL Infosystems has a solution tailor-made for everyone.
57
DESKTOPS & NOTEBOOKS

• Business PCs
• Home PCs
• Business Notebooks
• Home Notebooks

WORKSTATIONS

• Infiniti Challenger Workstations

SERVERS

58
Intel Servers
• Back-end Datacenter Server
• HCL Datacenter In a Box
• Rack Optimized Server Solutions
• Pedestal Server Solutions
• Entry Level Servers

Infiniti Xcel Line Servers


• Infiniti Excel Line 1200 PR with nVIDIA qeforce 6150 chipset
• Infiniti Excel Line 2200 YA with nVIDIA MCP 55 Pro chipset
• Infiniti Excel Line 2200AT with AMD 8131/8111 chipset
• Infiniti Excel Line 2200SY with Nvidia nForce professional 2200 chipset
• Infiniti Excel Line 4200TL with ADM 8131/8111 chipset

HP Risc Servers & Workstations

TECHNOLOGY PRODUCTS

• WINBee Thin Clients


o WINBee 3000 VX
o WINBee 4000 BV

59
o WINBee 4000 BVX
o WINBee 5000VX

• HUTS
o HUTS-8000V2

• Terminals
o Turboterm 2000
o Turboterm 2000 E
o Turboterm 2020 C
o Turboterm 2020 E
o Turboterm 2020 R
o Graphterm
• POET
o MLT 2000
o Multilinqual Terminal 2000
o Turboterm 2020 R

DISPLAY PRODUCTS

• HCM 580 M
• HCM 985RFM
• HCM 510LSA
• HCM 582

NETWORKING PRODUCTS

60
• HCL Passive Products
• HCL Active Products
• HCL Wireless Products
• HCL Media Converters
SECURITY PRODUCTS

• HCL Infowall
• HCL InfoSecuAccess
• HCL InfoVPNe
• HCL InfoSurveillance
• HCL InfoSecudesk-Biometric Logon
• HCL InfoSecudesk-SmartCard Logon
• HCL InfoLoadBalancer
• HCL Info Attendance
o HCL Info Attendance-Biometic BNX Series
o HCL Info Attendance-SmartCard SNX Series
o HCL Info Attendance-Biometric BNX-SC Series
• HCL Info VMS
• HCL Smart Library Management System
• HCL EAS System (Electronic Article Surveillance)
• HCL Stand Alone Door Access Solution - (NDL 600)
• HCL Stand Alone Door Access Solution - (NDL 100)
• HCL Hand Geometry Recognition
• HCL Hand Geometry With Smart Card
• HCL Smart Card Reader
• HCL Dual Interface Smart Card Combi Reader

STORAGE SOLUTIONS

61
HCL Storage Solutions
• HCL NAS 2700 SO
• HCL ECO stor SCSI-SATA Array
• HCL Infostor SCSI JBOD
Quantum Storage Solutions Library
• PX 502 Tape Library
• Scalar i500
• PX720
Autoloader
• Superloader3
Standalone Drivers
• LTO Gen III
• LTO Gen II
Qlogic Storage Solutions (HBA Cards)
• QLA 2460
• QLE 2460
• QLA 2462
Ingrasys NAS Storage Solutions
• 8420 R
• 4420 R
Brocade Switches
• 200 E
• 4100
62
EMC Storage Solutions
• TOSHIBA NOTEBOOKS
o Product Line-up
• SOLUTIONS
o Infostructure Services
o Networking Services
o Domestic Hardware Services

• SOFTWARE LICENSES

Statistical Profile Of the Organization


Here are given below some of the graphs representing the performance of HCL Enterprise in
the stock exchanges in the last few years.

Starting from 2002, here’s a graph that shows the values of shares of the company during
Jan1,2002 to Nov1,2002. The has seen many up and down swings in this period the highest
value being around 325 and the lowest around 160. During this period the value kept on
increasing and decreasing at certain time intervals. And finally it closed at 160.60.

63
Next graph covers the next time period i.e. from Oct18, 2002 to Dec 18,2002. During this
period, the company had to face a big down swing from around 230 to around 160. But
however the company overcome that situation and again raised upto 200. Final close was at
196.70.

During the period of Dec27, 2002 to Dec 26, 2003 i.e. almost one year; the company faced a
great downfall upto minimum value of merely around 115. But due to its performance
improving day by day the company’s shares again got momentum and finally closed at
288.80.

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Time period from Nov14, 2005 to Dec13, 2005 was a golden time period for the company
because it went on a big upswing during this. It started from around 470, facing minor
downswings in its way; the company’s shares went upto around 540 and finally closed on
535.80.

The next is the graph of the time interval from July19, 2006 to Aug 18, 2006. During this,
the company faced two major downswings upto very low values like 510 or 515. But as
always the company again shook up and had a final close at 575. During this time period, the
company’s returns raised upto 7%.

65
In the next time period i.e. from Sep1, 2006 to Jan16, 2007 the company came across a
very unpredictable kind of situation. It went up and down daily. No 2 days value could
be predicted from the earlier ones. It started from around 570 went upto a minimum of
550 and a maximum of 640 but finally closed at 638 thereby increasing the company’s
returns by 10%.

66
This graph shows share values of HCL in the recent times i.e. from Sep 2007 to Aug 2008.
This period has made HCL see a number of upswings but it had to face some major
downswings also. It started from around 280 had upswings upto 330 but downswings also to
minimum values like 230 then even upto 200. But this could not be avoided because this was
the time during which the share market declined with a very big margin. Now, the company
is slowing regaining its old momentum and is having share value of about 250 and is
expected to raise upto a remarkable extent.

Financial Status of the Organization

Balance Sheet

(Rs.
Crores)
Jun ' Jun ' Jun ' Jun ' J
07 06 05 04 un ' 03
Sources of funds
Owner's fund
132.7 5
Equity share capital 64.69 63.84 59.22
4 7.69
1
Share application money - 1.33 1.64 0.03
.71
Preference share capital - - - - -
3,292 2,511 2,796 2,231. 2
Reserves & surplus
.28 .18 .14 96 ,256.47
Loan funds
5
Secured loans 40.77 13.17 96.42 97.90
.42
0
Unsecured loans 0.12 0.21 0.27 0.33
.41
67
3,465 2,590 2,958 2,389. 2
Total
.91 .58 .31 44 ,321.70
Uses of funds
Fixed assets
1,332 1,014 632.0 412.3 3
Gross block
.67 .08 6 2 27.79
Less: revaluation reserve - - - - -
662.5 488.4 272.1 207.0 1
Less: accumulated depreciation
8 0 1 4 50.70
670.0 525.6 359.9 205.2 1
Net block
9 8 5 8 77.09
212.8 163.6 118.6 1
Capital work-in-progress 71.78
6 3 3 2.05
1,988 1,907 2,654 2,250. 1
Investments
.86 .76 .66 36 ,908.60
Net current assets
1,912 1,128 556.9 395.7 4
Current assets, loans & advances
.51 .61 6 3 63.02
1,318 1,135 685.0 580.5 2
Less: current liabilities & provisions
.41 .10 4 6 41.56
594.1 - - 2
Total net current assets -6.49
0 128.08 184.83 21.46
2
Miscellaneous expenses not written - - - -
.50
3,465 2,590 2,958 2,389. 2
Total
.91 .58 .31 44 ,321.70
Notes:
1,988 1,323 2,622 2,154. 1
Book value of unquoted investments
.86 .33 .08 54 ,740.00
173 1
Market value of quoted investments - 10.11 33.26
.04 89.44
418.6 331.0 511.5 205.1 2
Contingent liabilities
5 1 6 5 9.98
Number of equity Sharesoutstanding 6636. 3234. 3192. 2960. 2
(Lacs) 83 42 15 80 884.37

Profit and Loss Account

Jun ' 07 Jun ' 06 Jun ' 05 Jun ' 04 Jun ' 03
Income:
Operating income 3,768.62 3,032.92 1,447.01 1,127.98 871.73
68
Expenses
Material
- - - - -
consumed
Manufacturing
577.24 476.97 304.93 249.77 154.71
expenses
Personnel
1,322.59 1,123.51 488.54 362.39 254.82
expenses
Selling expenses 17.82 11.09 20.88 36.31 29.92
Administrative
913.89 611.59 276.13 194.58 148.18
expenses
Expenses
- - - - -
capitalized
Cost of sales 2,831.54 2,223.16 1,090.48 843.05 587.63
Operating profit 937.08 809.76 356.53 284.93 284.10
Other recurring
16.07 6.55 25.53 61.47 30.01
income
Adjusted PBDIT 953.15 816.31 382.06 346.40 314.11
Financial
20.60 17.81 11.58 12.22 3.74
expenses
Depreciation 178.21 138.80 67.56 56.89 49.31
Other write offs - - - 2.50 0.22
Adjusted PBT 754.34 659.70 302.92 274.79 260.84
Tax charges 75.87 15.45 12.15 13.81 13.61
Adjusted PAT 678.47 644.25 290.77 260.98 247.23
Non recurring
423.35 -5.87 36.01 64.74 58.45
items
Other non cash
- - 2.49 - 6.79
adjustments
Reported net
1,101.82 638.38 329.27 325.72 312.47
profit
Earnings before 1,313.7
2,287.81 1,838.31 1,439.05 1,476.41
appropriation 5
Equity dividend 525.59 516.10 501.75 295.85 116.85
Preference
- - - - -
dividend
Dividend tax 81.60 72.38 68.17 38.21 14.96
1,181.9
Retained earnings 1,680.62 1,249.83 869.13 1,142.35
4

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Cash Flow Statement

(Rs.
Crores)
Jun ' Jun ' Jun ' Jun '
Jun ' 07
06 05 04 03
Profit before tax 1,177.69 653.83 338.93 339.53 322.91
Net cashflow-
997.93 774.04 265.74 598.16 354.21
operating activity
Net cash used in
-341.46 -133.33 239.51 -391.35 -294.68
investing activity
Net cash used in
-381.57 -641.79 -493.71 -171.35 -108.56
fin. Activity
Net inc/dec in
274.72 2.22 11.75 35.66 -47.63
cash and equivalent
Cash and
106.22 104.00 72.78 37.12 84.75
equivalent begin of year
Cash and
380.94 106.22 84.53 72.78 37.12
equivalent end of year

Dividend

Year Month Dividend (%)


2008 Aug 150
2008 Apr 100
2008 Jan 100
2007 Sep 100
2007 Aug 100
2007 Apr 100
2006 Dec 200
2006 Sep 200
2006 Aug 200
2006 Mar 200
2006 Jan 200
2005 Oct 200

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2005 Aug 200
2005 Apr 200
2005 Jan 200
2004 Oct 200
2004 Sep 200
2004 Apr 100
2004 Jan 100
2003 Nov 100
2003 Sep 100
2003 Aug 100
2003 Apr 100
2003 Mar 100
2002 Aug 75
2001 Aug 50
2000 Aug 5

Statement of Share Holding

Share holding pattern as


30/06/2008 31/03/2008 31/12/2007
on:
Face value 2.00 2.00 2.00
No. % No. % No. %
Of Shares Holding Of Shares Holding Of Shares Holding
Promoter's holding
32778 49 32601 49 32602 49
Indian Promoters
2750 .19 4888 .01 6648 .11
12225 18 12225 18 12225 18
Foreign Promoters
9208 .35 9208 .38 9208 .42
45004 67 44827 67 44828 67
Sub total
1958 .54 4096 .40 5856 .53
Non promoter's holding
Institutional investors
Banks Fin. Inst. and 18977 2. 19007 2. 18954 2.
Insurance 408 85 908 86 556 86
12609 18 12043 18 11139 16
FII's
0160 .92 2855 .11 5823 .78
15919 23 15606 23 15111 22
Sub total
2757 .89 5018 .46 7222 .77
Other investors
16827 2. 18836 2. 18339 2.
Private Corporate Bodies
394 53 003 83 875 76
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NRI's/OCB's/Foreign 11376 1. 11528 1. 88149 1.
Others 701 71 824 73 32 33
10952 0. 10952 0. 10952 0.
Directors/Employees
30 16 30 16 30 16
50594 0. 51076 0. 80264 1.
Others
8 08 0 08 62 21
29685 4. 31881 4. 36187 5.
Sub total
037 45 421 79 103 45
27300 4. 28833 4. 28129 4.
General public
284 10 837 33 247 24
66622 99 66505 99 66371 99
Grand total
0036 .98 4372 .99 9428 .99

Explanation of Financial Statements


HCL Infosystems reported quarterly consolidated revenue of Rs. 3155 crores (USD 788.5
Mn), taking the consolidated revenue for the year to Rs. 12605 crores (USD 3149.7 Mn).

Profit Before Tax reported for the quarter at Rs. 96 crores (USD 23.9 Mn), taking the PBT for
the year to Rs. 430 crores (USD 107.5 Mn)

Board of Directors has recommended a final dividend of 100% per fully paid up share, taking
the total dividend for the year 2007-08 to 400%.

• Momentum in System Integration (SI) continues. SI is a growth area for HCL. The
company bagged Rs.1200 crores worth of orders, in the last five months.
• HCL expands its SI verticals. Enter new solutions segments & bag orders from
new customers across industry verticals.
• Pioneers the cause of IT penetration in India with the launch of MiLeap leaptops,
the next generation, ultra portable, and laptops.
• The year saw growth in Services business portfolio of HCL; the services business
grew by 35% from Rs.360 crores to Rs.485 crores.

The non-telecom distribution business grew over 270% during FY 07-08.

Highlights for FY 07-08


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The company has reported quarterly consolidated revenue of Rs. 3155.5 crores (USD 788.5
Mn), taking consolidated revenues to Rs. 12605.3 crores (USD 3149.7 Mn) for the year
ended June 30, 2008.

Consolidated profit before tax during the quarter was Rs. 95.6 crores (USD 23.9 Mn), taking
the consolidated profit before tax for the year to Rs. 430.1 crores (USD 107.5 Mn).

Consolidated profit after tax during the quarter was Rs. 65.1 crores (USD 16.3 Mn), taking
the consolidated profit after tax for the year to Rs. 300.1 crores (USD 75.0 Mn).

Revenue from Computer Systems business during the quarter was Rs. 876.6 crores (USD
219.0 Mn), taking the revenues for the year to Rs. 3388.9 crores (USD 846.8 Mn), a growth
of 22 %.

Profit before interest & taxes for Computer Systems business during the quarter was Rs. 39.1
crores (USD 9.8 Mn), taking the PBIT for the year to Rs. 199.5 crores (USD 49.9 Mn), a
growth of 14%.

Revenue from Telecommunication & Office Automation business during the quarter was Rs.
2278.2 crores (USD 569.3 Mn), taking the revenues for the year to Rs. 9222.8 crores (USD
2304.4 Mn).

Profit before interest & taxes for Telecommunication & Office Automation business was Rs.
70.9 crores (USD 17.7 Mn), taking the PBIT for the year to Rs. 285.4 crores (USD 71.3
Mn).

Consolidated EPS for the year ended 30th June 2008 was Rs. 17.6 per share.

Board of Directors has recommended a final dividend of 100% per fully paid up share,
taking the total dividend for the year 2007-08 to 400%.

Conversion Rate 1 USD = 40.02 INR.

Future Plans/ Prospects


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HCL's chemical policy based on Precautionary Principles

HCL’s vision is to avoid the use of harmful substances in its products that could cause serious
environmental and human health damage. HCL also takes precautionary steps to eliminate the
harmful substances and act with great caution. Its policy is not only restricted to legal
requirement but extends beyond the legislative framework. This means that HCL endeavours
to take best possible course of action to ensure phase out of target chemicals across all product
range, even where there is no legal requirement to do so.

HCL adopts the precautionary principle voluntarily by substituting harmful substances that has
potential impacts on Environment and Human health.

Harmful substances are identified based on scientific evidence and stakeholder's consultation.
In accordance with above-mentioned principle, HCL has identified some targeted substances,
which are not banned by law, to be phased out in clear time-line.

HCL further believes that if scientific grounds indicate that a substances could pose serious
environmental and human health damage, even if the entire risk has not yet been established,
precautionary measure need to be taken to avoid use of those substances in products.

· Substances with hazardous properties that are a known threat to human health or the
environment;
· Substances with hazardous properties that are known to bio-persist and bio-accumulate in
humans or the environment.

Accordingly, HCL has identified some targeted substances to be eliminated from production
process on urgent basis. List of targeted substances for immediate phase out:-

· PVC- HCL has committed to phase out all PVC across all product range by 2009.
· BFRs- HCL has committed to phase out all BFRs across all product range by 2010.
· Phthalates - Tentative timeline for its Phase out by HCL is 2012.
· Beryllium and its compound- Tentative timeline for its Phase out by HCL is 2012.

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· Antimony and its Compounds- Tentative timeline for its phase out by HCL is 2012.

HCL is open to discuss these plans and is committed to further identify another set of harmful
substances to be eliminated in future. HCL would continue to discuss and consult all
stakeholders on this issue.

HCL Tech to take SPAC route for foreign buyouts

This could be a global first: a strategic acquirer taking an unconventional route to strike an
acquisition deal. India’s fifth largest IT services player HCL Technologies’ founder, Shiv
Nadar, told ET that he is planning to raise a blank cheque firm or a Special Purpose
Acquisition Corporation (SPAC) on Paris-based NYSE Euronext exchange. This could
potentially allow the IT firm or its promoters to acquire a company abroad without straining
the balance sheet of the company.

Asset managers, merchant bankers or private equity investors who use it as a fund raising
route to strike buyout deals usually raise SPACs. By character, it is a very individual-driven
listed firm where the investors bet on the management’s ability to snap a good company. In
simple words, SPACs are a more liquid form of private equity, which usually focuses on a
single buyout, rather than a portfolio of transactions by a conventional private equity fund.

“In India, you can’t float a SPAC. Even in Europe, it’s very new. On Euronext, we would
probably be floating one, maybe one of the earliest,” Mr. Nadar, who is HCL Technologies
chairman and chief strategy officer, said. He didn’t give any hint about the size of the
proposed SPAC or whether he intends to use this vehicle to acquire strategic interests, which
could have synergies with HCL Enterprises. HCL Enterprises includes both the IT software
and hardware businesses of the group.

HCL follows Future Group, plans $1 Bn venture fund


Shiv Nadar-promoted HCL Enterprise, which owns HCL Technologies and HCL
Infosystems, is planning to form a venture capital arm and tap the bourses to rise close to
$1 billion (Rs 4,500 crore) through an initial public offer.

The venture, on the lines of Kishore Biyani's Future Ventures India, will focus its
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investments in the information technology sector, said a source familiar with the
development.

Nadar, chairman and chief strategy officer, HCL Technologies, will head the initiative. The
plan is at an early stage.

"Top executives of HCL have been in touch with investment bankers involved in the Future
Ventures' issue to understand the process," said a source close to the development on
condition of anonymity.

The IPO would be the first of its kind for the IT industry in India. Until now, VCs have
been raising funds through private investors and not through the public.

Kishore Biyani's Future Ventures India, which recently received Securities and Exchange
Board of India clearance, is one of the first VC funds in India to raise funds from the public
and invest in related firms.

However, the concept of VCs raising money through the capital market has been prevalent
internationally. For instance, Investor AB, listed on the Nordic exchange and controlled by
the Wallenberg Family, owns venture funds. Another example is Warren Buffet's Berkshire
Hathway.

In India, Future Venture filed the Draft Red-Herring Prospectus for an IPO to rise around Rs
3,700 crore by selling over 373 crore-equity shares of Rs 10 each. The price of the shares
will be fixed through the process of book building.

Future Ventures, in its DRHP filing, stated that it may acquire interests in large, mid-sized
and small assets and over a period of time dispose of a portion of these majority equity
interests in a manner that results in a minority holding.

HCL Technologies set to take $65-75m forex hit

The announcement of a forex loss by HCL Technologies only dampened investor


sentiment further on a day that saw IT bellwether Infosys take a huge beating despite
announcing a 21% year-on-year profit growth for the April-June quarter.
76
In a departure from the norm so far, the smaller IT services firm said it expects to post a
loss of $65-75 million on account of the rupee-dollar movements last quarter.

As of March 31, HCL Technologies had hedges worth $2.5 billion.

During the April-June quarter, it unwound $540 million worth of forward covers,
incurring a cash loss of $9 million. It also incurred mark-to-market (MTM) losses on the
cover outstanding.

A statement from the company said, with these losses, the ‘other comprehensive loss’ in
its balance sheet will swell to $114 million.

For the full year ending June 30, the company expects forex losses of $67-77 million,
against a gain of $79.2 million last fiscal.

The local currency depreciated by as much as 7.3% against the greenback during the
quarter, sending over-hedged companies such as HCL and Wipro into a tizzy. These
companies are likely to take hits since they had estimated the greenback at around Rs 40
levels, against Rs 43 now.

In June, DNA Money had projected forex losses fuelled by the depreciating rupee to trim
IT company’s profits substantially. Wipro, for instance, had $3 billion worth of
outstanding hedges as on March 31, 2008, on which it faced mark-to-market cash-flow
hedge losses of Rs 109.7 crore. In comparison, TCS had $2.2 billion worth of hedges,
while Infosys had a forex cover of $760 million in March.

Critical Appraisal

77
Gartner Rates HCL As a 'Mature' Player in Life And P&C Insurance IT
Outsourcing; Report Highlights Importance of Domain Experience in
Insurance Outsourcing

HCL Technologies Ltd. ("HCL"), a leading global IT solutions provider in Information


Technology, IT Infrastructure Services and Business Process Outsourcing, announced that
its Insurance Practice has been rated as "Mature" in its capability to support Life and
Property & Casualty (P&C) Insurance IT Outsourcing (ITO) projects by Gartner. HCL is
also one of the top two companies, which are present across all insurance product
segments and has been rated as "Emerging" in the BPO - Life and P&C Insurance

Gartner predicts...

--The number of strategic outsourcing projects will increase during the


next two years.

Commenting on the ratings Dan Morris, Corporate Vice President, HCL and Head of
HCL's Insurance Practice said, "The ratings from Gartner reflect the results of our
ongoing effort to build domain competency and deliver value to customers across key
segments of the insurance industry. As Insurers leverage global sourcing for restructuring
operations and technology, HCL is equipped to deliver superior value and innovation
with the industry's broadest service offerings, domain depth and innovative engagement
models."

The report titled 'Domain Experience a Must for Insurance Outsourcing' by


Kimberly Harris-Ferrante, Vice President and Research Director, Gartner Financial
Services, compares various outsourcing service providers on the basis of experience with
Life and P&C Insurance. Thirty-seven companies were assessed on the level of experience
in different product and functional areas including the support of distribution, rating,
underwriting, policy administration, claims administration and reinsurance.

Commenting on HCL's mature expertise in the insurance IT outsourcing, the report states
that HCL has developed a deep and broad expertise in life insurance ITO, and has built
competencies in ITO in the P&C industry for projects around distribution, commissions,
rating, connectivity, underwriting, billing, policy and claims administration. HCL has
78
been strengthening its focus on BPO and acquired some customers in these segments. To
date, HCL supports product development, policy processing and servicing, claims
processing, and billing for a life insurer in Europe and underwriting, product development,
policy processing and servicing, and claims for a P&C insurer in North America.

HCL's Global Insurance Practice provides a broad range of insurance outsourcing


services that range from Application Development and Maintenance Services, Remote IT
Infrastructure Management, BPO and Consultancy Services. These services are delivered
by a dedicated team of insurance practitioners knowledgeable in the industry and in
technology. This business-centric team drives solutions that are relevant to industry issues
and which are technologically driven. HCL's insurance focus is further augmented by one
of the industry's most comprehensive insurance education and certification programs for
HCL staff. In fact, HCL has recently won LOMA's 2005 Excellence in Education
Award (for the second straight year) to recognize HCL's commitment to insurance
education.

Critical Appraisal on Future Prospects of HCL

As mentioned earlier in this report, HCL has announced the launch of new MiLeap, ultra
portable Leaptops, based on Intel Atom technology. Being in line with HCL's vision of
making technology relevant and affordable to every Indian, the launch of new desktop
will also prove to be a significant step towards environment friendly computing. With
increasing awareness for the environment and also with the issues pertaining to power
availability in both urban and rural India this next generation PC will prove to be much
more power efficient. "Neutron" comes in a compact design and offers significant power
saving of upto 76% and also occupies 85 % less space as compared to the products
available in the market. This desktop is more affordable and is ideal for the enterprise and
small businesses alike, as it significantly minimizes the total cost of ownership by
addressing the challenges like space, power, acquisition cost and overall PC maintenance
and management expenses. So this launch will surely be very successful.

As we know that HCL Enterprises has made a chemical policy that is based on
Precautionary principles. This policy concentrates on making efforts to avoid the use of
harmful substances that are responsible for causing serious environmental & health

79
damage. This is a commendable effort that has been made by the company and it will
surely pay the company in future. Because this is a step taken ahead by the company for
the safety on the environment & protection of our environment from external damages
made by man is a very hot topic going on these days. As per the information provided by
the company, the company is ready to discuss all the aspects of the projects with its
stakeholders so it does not have much fear of their opposition because everything will be
carrying after consulting them. So this project will make the company much more
respectable in the society and people’s trust on the working of the company will increase
manifold.

But considering the other side of the coin if in case it faces any kind of opposition from
the stakeholders then the project will come to a standstill. It will lead to loss of goodwill
of the company to some extent as well as company will have to face financial loss also. So
its better to firstly get stakeholders in confidence and then make any further move.

HCL has started another venture of raising funds from the public and invest it in related
firms. The company is the first of its kind to start such a venture in India. This venture is
expected to focus on investments in Information Technology sector. This venture will
enable the company to have a strong financial position in the IT sector since the venture
plans one billion venture fund. If this fund is expected to be invested in the IT sector then
it is quite obvious that all IT companies will enjoy one or more benefits from it. But this is
a very risky project. If the fund cannot be collected upto the planned level it will surely
affect the effectiveness of the consequences that have been expected from the project.
Although company may be expected in a position to take such a risk but a second thought
can be given.

As per another venture undertaken by HCL Technologies, the company is going to take
the route of SPAC for foreign buyouts. This project can allow the company to acquire a
company abroad without having much straining effects on the financial status of the
company. Considering critics’ viewpoint, this is not an intelligent move by the company.
It is using a separate medium to enhance its market outside India. So this is sure to have
an adverse effect on its working in India. Much effort will be directed on foreign market,
which will ultimately harm the Indian market. Indian market is undergoing severe changes

80
very rapidly these days so it needs quite much of attention so its better to concentrate on
existing market currently rather than looking for new ones.

Although the future plans of the company seem to be risky to some extent but if they are
successful to the expected extents then the heights that the company will achieve will be
worth noticing. So we can only wait and watch what game time plays. Inspite of these
projects of HCL Enterprise, the social significance of the company cannot be ignored.

At the end we can say that staying competitive in today’s dynamic business environment
means finding new ways to reduce costs while maximizing the value of your technology
and personal resources. More than ever, one’s ability to "do more with less" determines
how successful one’s organization will be. That’s what HCL helps us achieve. By
channeling their in-depth expertise gained from over 28 years of IT Domain experience,
the company will provide a full bandwidth of services specifically designed to meet our
complete IT needs and as a single window for completing business solutions wherever one
is located…

Bibliography

Search Engines Consulted

o Google
o Yahoo
o Rediff
o Wikipedia
o Dogpile
o AOL
o Reliancemoney
o MSN

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Websites Visited

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