Analyst Coverage

January 07 To September 09
HCL Outlines Its Cloud Computing Achievements

"Its client base extends from the enterprise segment to technology vendors. For technology vendors, the
company assists in servicing the clients of its clients. The SAP cloud offering is unusual and competing
services are only offered by 2 U.S. headquartered vendors and half a dozen European IT services
vendors."

HCL Technologies has recently outlined key contracts for its cloud computing offering. The company has been involved in
building and sometimes operating private clouds for technology vendors and ISVs, combining its product engineering,
application and IT infrastructure outsourcing capabilities. The company has been involved depending on the client from the business
and IT strategy phase to the project delivery.

The range of services that the company has provided is wide: it has been involved in redesigning the internal
infrastructure of several ISVs or helping with the software product strategies of its clients to external clients that include
first-tier ISVs and technology vendors with headquarters in the U.S. and in Europe and others.

For a U.S. Fortune 1000 ISV: HCL has been involved in several initiatives including simplifying the application
architecture of its internal ERP applications, upgrading SAP applications and supporting servers. As part of the SAP server
transformation, HCL Technologies has migrated the physical servers from a competitor's datacenter into its own in
Georgia and virtualized those to build a private cloud for the production environment. The company established a back
up site to Sungard that is used for testing environments. The client favored building a private cloud rather than using
public cloud services for several reasons including its requirement to provide a recovery within 15 minutes. HCL has
however wherever possible aimed to share select elements e.g. networks and managed security among several clients.

For a Europe-based Fortune 500 ISV: HCL has helped design the client's strategy for its midmarket clients. The client's
mid-market SaaS-like offering includes the license cost and the underlying maintenance & support, help desk and
hosting services. The application is however single-tenant. A key challenge for HCL has been to keep IT costs under
control to enable the SaaS offering of SAP to be profitable. The service is available for demo, trial and production for a
fixed price per user per month.

2
TPI Names HCL Amongst 2009 Top 10 Infrastructure
Providers by TCV

HCL has been named amongst the 2009 Top 10 Application Development and Management (ADM) and
Top 10 Infrastructure Service Providers by Total Contract Value (TCV). TPI has also named HCL amongst
2009 Top 15 Americas Service Providers and 2009 Top 15 EMEA Service Providers by TCV.

In the recently launched TPI Index, an analysis based on the

FY09 and 4Q09 state of commercial outsourcing market
launched by TPI, HCL has been named amongst the 2009
Top 10 Application Development and Management (ADM)
and Top 10 Infrastructure Service Providers by Total
Contract Value (TCV). TPI has also named HCL amongst
2009 Top 15 Americas Service Providers and 2009 Top 15
EMEA Service Providers by TCV.

Other highlights of the TPI index are:

$25 billion contracts were awarded in 4Q09, up by

47 percent Quarter over Quarter (Q/Q) and 8 percent Year
over Year (Y/Y); strong mega-deal performance in the
quarter.
TCV was the second-lowest of the decade as the
market bottomed in the first half and turned in the second
half — full year 2009 TCV is down by 13 percent.
ITO market had its best quarter in six years. Fourth
quarter ITO TCV is up by 32 percent Y/Y — best quarter
since 4Q03.
had a very strong fourth quarter led by some very
large deals. The region‘s 4Q09 performance is significantly
up (Q/Q and Y/Y). However for 2009, TCV was down by 21
percent.
threelargestindustryoutsourcingverticals
strengthened in the second half of the year. Financial
Services, Manufacturing, and Telecom and Media showed
strong second-half increases.
annual TCV awarded was lowest of the decade.

3
HCL acknowledged as an experience partner
for Virtualization services

HCL has been positioned as a “premier full-service infrastructure service providers. HCL Technologies'
virtualization offerings are particularly suited to large companies looking for an experienced partner,
existing outsourcing clients and clients who may wish to outsource their environment after
virtualization.”

―From its legacy of building and operating a high-availability, high-response time infrastructure, HCL Technologies has
developed into one of the premier full-service infrastructure service providers. Its virtualization credentials include
engagements with more than 25 Fortune 500 and Global 1000 customers, a global system integration partnership with
VMware and partnerships with Microsoft, Cisco, EMC, Hitachi Data Systems and Sun Microsystems, and a team of more than
150 virtualization professionals supported by 300 other infrastructure implementation specialists on a worldwide basis.

While HCL Technologies offers traditional consulting services to virtualize servers, storage, networks and desktops, it started
offering in January 2009 a unified virtualization as a service (UVaaS) offering, providing network, storage, server and desktop
virtualization. In this offering, HCL Technologies takes over a client's hardware assets, virtualizes them and "rents" them back
to the client on a per-month, per-virtual instance basis. For clients, this means no capital expenditure (capex) investments and
no upfront investments on licenses. It also offers "Business Ready with Virtual Infrastructure Utility" for specific applications,
such as SAP. To date, it has implemented more than 100 licenses. Clients can pick among three productized service packs:
basic, gold and platinum, depending on the level of services needed. Pricing is dependent on the number of servers virtualized.
As an example, a basic service pack starts at $35 per virtual machine per month.

HCL Technologies' virtualization offerings are particularly suited to large companies looking for an experienced partner,
existing outsourcing clients and clients who may wish to outsource their environment after virtualization. Client feedback
indicates that HCL Technologies is particularly flexible as a partner, has the experience and capability to help clients avoid
pitfalls in their virtualization journey and is willing to invest in clients by performing upfront work, such as planning and
justification on "their own nickel.‖

4
HCL acknowledged as a Tier 1 provider with
end-to-end services and solutions to M&E

M& E Market Landscape

―HCL has transitioned from being a niche provider to a Tier
1 provider with end-to-end services and solutions to the
M&E industry‖

HCL looks at the market from the media executive

perspective and projects ahead to future trends and
issues that will impact the business.
HCL differentiates itself from other Tier 1 vendors
through its ―Total IT Outsourcing‖ solution, which
requires an examination at all aspects of HCL's
customers' IT landscape and associated costs, by
leveraging its strengths in three service areas:
applications, infrastructure and business processes.
HCL has an ―ASSeT‖ transition methodology designed
to reduce transition time and risk through reusable
accelerators.
HCL rated “Positive” in Gartner's MarketScope For
Managed Security Services, 2009

―HCL Technologies is an offshore provider that can

build on its experience as a strong player in the local
market in India. In Europe, HCL is still a small
player, but has good growth potential. HCL
experienced the highest growth rate (in terms of
customers) in 2009 of all providers in this
MarketScope, albeit from the lowest level.‖

In this report Gartner has acknowledged HCL‘s

• Competitive pricing.
• Number and quality of skilled resources.
• Flexibility on engagement management.
• Experience in providing offshore, shared-resource
environments

6
Gartner Recognizes HCL Capabilities in M&E

— HCL has transitioned from being a niche provider to a Tier 1 provider with end-to end services and
solutions to the M&E industry. The recent acquisition of Axon provides HCL with a stronger SAP practice. HCL's
demonstration to the market of their emphasis on "employee first" carries to client engagements in which issue
resolution and responsiveness, together with a proactive stance on innovative thinking, is apparent. The culture of
trust, transparency and flexibility has created a strong partnership with its client base.
Marketing Strategy — HCL provides consulting, infrastructure outsourcing, application
outsourcing, BPO, quality assurance (QA) testing, and product engineering support services. HCL has an "ASSeT"
transition methodology designed to reduce transition time and risk through reusable accelerators. HCL is focused on
building domain-specific solutions to a "microverticalized" approach. Its strategy is to become an end-to-end provider
with unified service offerings to address content, communications, and services synergies for convergence. HCL invests
significantly in industry-specific solution developments, such as Content 2.0 (a network publishing platform for new
age publishers), digital rights management, an "Integrated Media Platform for Asset-Centered Transformation"
(IMPACT), which is a digital asset management solution framework, digital TV, social-networking platform (open-
source-based), a gaming converter protocol, and multichannel server-based gaming.
HCL Competes — HCL looks at the market from the media executive perspective and projects ahead to future
trends and issues that will impact the business. It invests to mitigate risks for the clients' benefit. HCL suggests
solution innovation throughout the engagement via a "value creation" portal in which there is transparency and
communication of new idea exchanges between the client partner and the project team. HCL differentiates itself from
the market with its outcome-based commercial models in which there is a shared-risk/shared-reward deal structure
and it seeks to identify potential new revenue opportunities for its clients. HCL, for the past year, has been focusing on
the concept of business-aligned IT. It has been in discussions with customers to educate them on the need to align IT
with business imperatives and make technology-related decisions, keeping in mind the business domain, technology
and operations. Additionally, HCL differentiates itself from other Tier 1 vendors through its "Total IT Outsourcing"
solution, which requires an examination at all aspects of HCL's customers' IT landscape and associated costs, by
leveraging its strengths in three service areas: applications, infrastructure and business processes.

7
Gartner strongly speaks for HCL‟ s offerings
in Infrastructure Utility for SAP

HCL has delivered infrastructure services in India for a long time before offering remote infrastructure
management services to the U.S. and recently to Europe-based clients.

HCL's IU approach has been developed during the past five years and includes three distinct offerings:

HCL's BRI is for organizations with more than $1.5 billion in revenue with dedicated computing
resources.
The Midmarket Infrastructure Service Factory is virtualized and shared, and it's priced on a pay-
per-use basis within pricing bands or ranges.
EZ ERP, delivered in India or client-owned data centers to clients that want to move from legacy
homegrown systems to an industrialized ERP system.

HCL takes full responsibility for the infrastructure with defined SLAs, and allows users to ramp up in usage
or dial down in the selected band.

HCL reported more than 10 BRI clients and more than 45 clients for IU SAP services overall, for a total of
40,000 named users.

8
Bathwick Sentiment Indicator Panel ranked HCL
the highest among the Indian-heritage vendors
Bathwick Service Index (BSI) research for the fourth quarter of 2008
Market dominated by cost reduction is forcing private and public sector CIOs to
make bold decisions
June,2009

During the quarter to end of December 2008 most vendors saw slowing
growth in Europe, reduced to a 2% to 5% revenue growth range, with
HCLTech bucking this trend.

HCLTech saw the most improved standing on the BSI for an Indian-
heritage company

HCL completed an impressive quarter in Europe by closing the largest

acquisition of any Indian IT services vendor to create HCL Axon, as well as
winning the Nokia desktop deal from IBM.

HCLTech scored most highly among Indian-heritage vendors in terms of

buyer confidence in the Sentiment Indicator Panel for the quarter.

HCLTech has put in an impressive quarter in Europe: completing the Positions for Q4 2008. Source: The Bathwick group
largest acquisition of any Indian IT services vendor to create HCL Axon, and
winning the Nokia desktop deal from IBM.

the quarter to end of March 2009 most vendors saw flat or declining
growth in Europe, reduced, on average, to a -3% to flat revenue decline.
HCLTech bucked this trend with high single digit YoY growth

has fire in its belly and is winning some impressive global deals
including RDA, & Xerox

Europe it has its eye firmly on public sector and utilities and has
already been named one of Britain‘s top employers.

9 A breakdown of HCL Tech‟ s overall BSI score

HCL rated “Promising” in Gartner's MarketScope
For Telecom Expense Management, 2009

― HCL is best positioned to service global expenses for large MNCs,

irrespective of spending on fixed services or the number of handsets to
be managed.‖

10
Gartner writes first case study for HCL in
North America

HCL's "transformational" response proved the optimum solution in the bid process, but also promised a more-
aggressive use of the global delivery model for both application support and remote infrastructure management to
drive down cost

HCL‘s Full-Service Outsourcing Model was chosen based on the following

• Varied provider options
• Price competitiveness
• Funding of transformation efforts would be outside of the outsourcing deal
• Single- or multi geography delivery options
• Transparency
• Adoption of a strong legal framework
• Provider passion to win the business

Measured against Teradyne's objectives, the outcomes achieved by HCL exceeded expectations:
• Thirteen percent reduction in the number of discrete applications and infrastructure components
• Twenty percent reduction in cost per employee of IT staff
• Moving toward reducing application portfolio by 48%, with a collaborative transformation team of HCL and
Teradyne
• Infrastructure transformation and optimization, consisting of virtualization, consolidation and technology
refresh
• Global delivery model developed and deployed by the HCL team

• Customer portals to improve customers' access to eKnowledge by 70%

11
HCL Technologies Recognised as one of Britain‟ s
Top Employer

Britain‟ s Top Employers 2009 by CRF International

April 24, 2009

“To be in a position to attract the best talent, companies must align their
people management policies and procedures with the right corporate
culture”.

“HCL‟ s emphasis on empowering staff at all levels within the organisation

especially impressed us. Having recognised its commitment to help
employees proactively build their skills and achieve to their full potential, we
were delighted to be able to accredit the company as one of Britain‟ s Top
Employers

Dominic Knight, Regional Director for UK, Ireland & Northern Europe at CRF

12
HCL‟ s Green IT initiative recognized by Forrester

Forrester counts HCL as a highly-regarded

services company withstrong presence in
Infrastructure Management and Outsourcing.

is entering in the Green IT services market

by building on its infrastructure outsourcing and IT
strategy engagements with customers

HCL‘s ―Green edge‖ program is in development,

adding capabilities like GHG tracking and waste
and water management to its data center and IT
asset management expertise.

HCL currently has a number of customers for its

green IT services and will be broadening its
footprint with those clients and others drawn from
its existing client base in manufacturing industries
like automotive, aerospace, and high-tech.

13
HCL Technologies Awarded 6 year Data Center
Management Contract by Xerox

April 15, 2009

HCL Technologies has announced its award by Xerox of a 6-year contract to manage 9 Xerox mid-range
regional datacenters in the U.S. and Europe, in a deal valued at $100m.

Services to be provided by HCL include

 Data center hosting and migration, virtualization, consolidation and storage architecture services

 Architecture and consulting services for new technology and system design, adoption and lifecycle improvement

 Business continuity and disaster recovery.

Analyst comments:

HCL will use its Business Service Management process to centralize and standardize Xerox's data center
infrastructure.

It was no surprise that Xerox moved away from EDS, now an HP company. It is not yet clear what Xerox
intends to do with the end-user workplace services it also outsourced to EDS in a contract extended in April
2008 Xerox chose to outsource to HCL rather than another new (BPO) partner IBM

14
HCL Technologies Announces Fiscal Q3 Revenues
up 18.2% to $564m – Nelson Hall

• HCL Technologies has announced fiscal Q3 2009 revenues, for the period ending
March 31, 2009, under U.S. GAAP of $564.4m up 18.2% y-o-y, and up 11.3%
sequentially. In constant currency y-o-y growth was 27.4% and sequential growth
was 12.9%.

• Excluding the benefit of the Axon acquisition, the key growth areas during the
quarter were EAS and infrastructure services.

• Axon contributed $75m revenues in fiscal Q3.

• Nelson Hall says ―while the market demand for SAP project-based services is still
very soft, Axon will ultimately benefit from HCL's offshore capabilities and broader
geographic presence, and HCL is targeting opportunities to offer adjacent IT
services to Axon's client base. In particular, Axon brings relationships in the E&U
sector in the U.S. and the U.K. public sector.”

Source: http://www.nelson-hall.com/research-programs/tracking-service/industry-insight-database/?avpage-
views=article&id=65282&fv=2

15
HCL recognized as a “Leader” in The Forrester Wave: Global IT
Infrastructure Outsourcing, Q1 2009 with highest scores in
customer satisfaction

Leaders Align To Business Requirements And Strengthen

Service Delivery
HCL Technologies. Although certainly much smaller than the

legacy powerhouse service providers, HCL‘s rapid growth in the

infrastructure space (>65% CAGR over the past three years) is
no fluke.

The firm continues to grow delivery capability, including a new

facility in Raleigh, North Carolina, and it has growing
partnerships with SunGard, Xerox, Unisys, and others.

HCL Technologies also demonstrated good evidence of a

nonlinear relationship between client geographical distribution
and infrastructure staff distribution (suggesting good capability
at moving work in a way that balances cost and requirements).

HCL Technologies had excellent reference client scores, and it

also is well positioned to gain the scale it needs with a sound
forward-looking strategy for the infrastructure business.

16
HCL named “Best Employers” in Asia and ranked
No: 1 in India by Hewitt in its 2009 Study

HCL has been selected for ―its remarkable

consistency in its day-to-day business and when
they respond to difficult times.‖

17
HCL Awarded USD 350mn USD Total Outsourcing
Contract By Reader's Digest Association

Mar 27, 2009

RDA CEO Mary Berner states reason for choosing

RDA is aiming to digitalize its paper-based archives HCL.
and allow them to be accessible through the web,
through mobiles or through other channels.
―HCLwasaggressive smart, forthright &
collaborative‖

The cost-savings-funds-transformation approach has

however a price: the initial phase is expected to last
for 18 months and therefore delay new digital
initiatives.
The goals of the contract are to:
 Lower the cost of running the IT of the client
Som Mittal, President NASSCOM
―We congratulate HCL for this landmark engagement,
this deal reinforces the fact that how global
sourcing help companies to take advantage of
talent, new opportunities which will help revive
current economic situation‖

 HCL aims to consolidate services at the central

level,standardizeinfrastructureand
applications, homogenize processes and tools ―What Slump? HCL gets USD 350 mn deal.‖-
across the firm Hindustan Times

 Increase quality by adopting ITIL best practices

and CMMi 4 certification

 Finance transformation projects by savings

―HCL is aggressive, other IT Services companies
achieved on run services. should be ripping pages from HCL Playbook‖

- Business Week

18
HCL Recognized as „Challenger‟ in Gartner Magic Quadrant For
North American Help Desk Outsourcing Services, Q1, 2009

Magic Quadrant for Help Desk Outsourcing,

North America
4 March 2009

Gartner goes on record to say:

Help desk services are still emerging from India, but HCL is
one of the leaders, and it handled, worldwide, more than 7
million help desk trouble tickets in 2008.

HCL has service desks in five geographic locations, besides

Raleigh, North Carolina, in the U.S. The other four locations
are lower-cost alternatives: India, Northern Ireland, Poland
and China.

HCL has designed a best-practices framework during a typical

engagement life cycle, which is benchmarked against the HDI
Support Center maturity model to enable smooth and resilient
delivery of help desk services.

Source: Gartner (March 2009)

19
“HCL Has Emerged As A Vendor To Watch”- Gartner

04-Mar-2009

HCL has been investing in utility-type offerings for IT infrastructure for more than five years.
HCL actually has three distinct offerings and several more in development. These include:
HCL's Business Ready Infrastructure (BRI) offering
Midmarket Infrastructure Service Factory
An India-specific offering called EZ-ERP
HCL's offerings can be categorized as an IU with a degree of maturity along Level 3, as defined by the
Gartner IU Maturity Model (IUMM).

Gartner believes that the most-positive attributes of these offerings include:

The clarity of the target market definition by size and scope of each client base

The degree of standardization of infrastructure services, the SLA structure and the pricing model

Offshore capabilities

HCL's flexibility and willingness to deviate from the core IU solution as large, complex clients chose to
"phase in" their adoption of utility services by starting with a privatized model

20
HCL Effective in Addressing Vendor Consolidation
and Migration Issues - ARC

MARCH 26, 2009

HCL Technologies has pioneered best-practice methods, realizing the challenges faced by users
attempting migration and vendor consolidation

ARC refers HCL‘s eZMigrate as a comprehensive framework that covers every stage that is critical for
integration, transition, and vendor consolidation.

ARC believes that eZMigrate has evolved out of HCL Technologies‟ years of sound knowledge and
expertise acquired through numerous project implementations

With eZMigrate HCL Technologies is in a position to provide a relationship oriented, technical, and
commercial solution that minimizes cost and risk of vendor transition, while ensuring business
continuity.

HCL is one among the few companies having extensive experience in providing application services and
deep insight about the leading enterprise solutions.

The fact that the company has won 31 out of 38 vendor consolidation opportunities that came its
way in recent times testifies to customers‘ acknowledgement of HCL Technologies‘ ability to accelerate
business transformations, vendor consolidation, and migration

21
“HCL- A Leader In Developing Green Agenda”- AMR

HCL is the leader in developing service offerings with the green agenda

HCL offers integrated suites of green-focused services.

HCL is going to significant lengths to get its own houses in order through eco-friendly and LEED-
certified (or equivalent) campus and building

HCL has recently developed its Green Edge service portfolio, much of which appears to remain heavily
committed to the green data center and delivering efficiency in the IT area developments as well as
cross-organizational sustainability initiatives

22
The Nokia Deal positions HCL as the leading offshore provider in
help-desk and desktop management outsourcing in Europe - Gartner

5 Feb 2009

The landmark deal covers 76 countries and 13 languages, and serves an estimated 50,000 Nokia
users.

Gartner says, HCL's ability to successfully perform this transformation to reduce costs and improve
service delivery will determine deal success.

The deal will increase HCL‘s market share and credibility, and trigger more intense global competition

23
AMR classified HCL as a Strong Performer
for its Fiscal 2nd Quarter-2009

AMR says the acquisition of Axon Global still looks like a smart move; otherwise enterprise application
revenue would have been down.

It‘s the exchange rate, due to which the net income was $76.6M, down 9.3%. Without forex losses, net
income would have been up nearly 28%.

In the wake of Satyam‟ s collapse, HCL is wisely highlighting its commitment to corporate governance,
including specific actions that make the company‘s financial activities more transparent.

Caution:

BPO is one area that‘s behind peers and where the company‘s recent industry-specific acquisitions of
Liberata Financial Services (financial services) and Control Point Solutions (telecommunications and
media) have yet to bear significant fruit.

24
Forrester recognizes HCL as the Most Active
Acquirer

January 13, 2009

Forrester has examined how the key players in the IT services market have fared and how they are adapting

their strategies to not only the looming downturn but also to the new technology ecosystem

The Service Providers Forming

With the exception of Capgemini and HCL Technologies, none of The Most Partnerships
the providers completed more than one acquisition in H2 2008.
In addition to the acquisition of Axon Group, HCL Technologies
also acquired Control Point Solutions (specializing in voice, data,
and wireless services) and Liberata Financial Services (a leading
UK-based BPO provider).

Providers Adjust Their Go-To-Market Strategies To Deal

With Market Change

HCL Technologies continue to expand their global delivery

footprint.
HCL Technologies‘ proportion of fixed-price projects increased
Base:55partnership
from 31.2% for the quarter ended September 2007 to 36% for activities tracked among 23
the quarter ended September 2008. ITservicesand
outsourcing providers

25
HCL playing the game differently - Tech Market
View

HCL is being highly appreciated on the increased level of financial transparency and a “full and frank”
disclosure of every financial services institution around the world where they have deposited cash and
bonds.

HCL won $ 1 bn new order in the last quarter the largest being the $350m/7 years with a ‗worldwide
publishing company‘ for a major Oracle project including infrastructure management (IM). 64% of the H1
deals that HCL won were against global majors.

Since the acquisition of Axon, the new HCL-AXON business has won four new deals, have not lost a single
client and no Axon work has moved offshore. In the current quarter the revenue is expected to be $95m
(say £70m).

The HCL-Axon could look a very attractive offer, at least in the UK and US – a premium onshore front-end
with an established Indian back-end.

With LFS, HCL is trying to move into ‗platform BPO‘, and Life & Pensions is a hot market in the UK but
finding that (re)building the processing platform a lot harder than expected as with TCS.

HCL is becoming an ever more interesting player to watch, especially in the UK. Being under half the size
of the TCS, Infosys and Wipro by worldwide revenues and with rather lower margins, it is playing the
game differently.

26
HCL, 1st Indian Provider to establish U.S. Helpdesk -
Gartner

Indian providers had been establishing U.S. operations, like Wipro acquired Infocrossing; TCS & HCL setup
delivery centers in Cincinnati, Ohio, and Raleigh, North Carolina

HCL, the only Indian provider announced to offer help desk services domestically in North Carolina which is
a starting of settings up helpdesk centre (24/7) in US while using U.S. employees

27
HCL's Global Meet- Providing Structure in an
Unstructured World by IDC

Dec 2008

HCL‘s "Unstructured" Global Meet was a concerted effort to "step out of the box" to engage its customers in strategic
relationships in the current global economy

HCL made its customers think on the platform of innovation and to reflect on the meaning of strategic value of implementing
iterative incremental improvements over time.

Speech by Gary Hamel to 500 customers-"How do you build a company that is as human as the people that work within them,
as most organizations are less capable than the people within them.―

Future Outlook:
Business-aligned IT- HCL continues to evolve its application life-cycle strategy and internal frameworks to support more flexible
client IT alignment

ERP revitalization- WITH AXON acquisition, HCL strengthens its foothold in the SAP world
The green edge- HCL has rolled out its Green Services Framework and Green Product Engineering services (GPES) for customers
Business-aligned R&D- HCL‘s new paradigm for global collaborative innovation enables it to move up its customers‘ value chain
Aligning employees with business- To help its clients address the concept of innovation, the dual need to recognize employee
value and create environments that foster employee innovation

IDC appreciates HCL Global Meet- event that revealed HCL‘s growth and maturity in listening to and hearing the voices of its
own customers.

The future of HCL may ultimately rely on how it successfully mines and transforms unstructured elements into structurally sound
winning business outcomes

28
HCL considered as an Active Indian Offshore
Service Provider - Gartner

Among the mainstream Indian offshore service providers, HCL is considered to be very active in the
Indian domestic market along with TCS and Wipro

HCL Technologies has a wide portfolio of offerings and a strong focus on the Indian customers apart from
their large offshore operations out of India.

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HCL rated “Positive” in Gartner's Remote
monitoring & Support Services MarketScope, 2008

Gartner appreciates HCL's strategy focuses on

using a co-sourcing model, which ensures
collaboration with each customer's business.

HCL has developed proprietary frameworks

and tools to ensure that remote delivery is of
high quality and is process-oriented to benefit
its customers.

The structure is set up so that HCL owns the

service SLAs, and customer owns the
business user interface and strategy.

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HCL amongst the Challengers in European Offshore
Application Services- Gartner

Strengths:

HCL- leverageitsintegratedoperations
management framework
HCL has a targeted sales strategy- focus on
business value delivery

Clients recognize HCL for:

Flexibility to adapt to changing business needs

Challengers: execute well today but have a less-defined view of market direction. They may not be
aggressive and proactive enough in preparing for the future.

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HCL amongst the Leaders in North America
Offshore Application Services- Gartner

Strengths:

HCL-leverageitsintegratedoperations
management framework
HCL has a targeted sales strategy- focus on
business value delivery

Clients recognize HCL for:

Flexibility to adapt to changing business needs

Commitment to meeting on-time deliverables
Lower attrition due to its "employee first"
program

Leaders: performing well, have a clear vision of market direction and are actively building competencies to
sustain their leadership positions

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HCL is enabling Product Engineering and Support
Services for ISVs in the SaaS Ecosystem.

Consulting in the Cloud: The Emerging SaaS Consulting, Product

Development, and Outsourcing Ecosystem
Tuesday, June 24, 2008
Dana Stiffler, Robert Bois

HCL‘s main play in the SaaS ecosystem

today is enabling product engineering and
support services for ISVs. It has provided
these types of services for years to software
vendors, through the switch from mainframe
to client-server, from client-server to web,
and from on-premise to SaaS

HCL‘s traditional infrastructure expertise is a

boon in these engagements, where the goal
is to engineer a smaller footprint that‘s more
compatible with on-demand computing and
today‘s smaller data centers

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Gartner rated HCL “Positive” in Managed
Security Services in EU

 HCL has growth potential due to solid

remotemanagementexperience,
coupled with a good understanding of
European market specifics.

 HCL offers standard and customized

SLAs. New clients praise the staff's due
diligenceincapturingoperational
knowledge and implementing it in
scripts and processes in the company's
SOC.

* Positive- Demonstrates strength in specific areas, but execution in one or more areas may still be
developing or inconsistent with other areas of performance

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IDC rated HCL as the leading India SPs in FS sector

Nov 2007

HCL transformation strategy is based on 5 pillars:

 Pricing innovation
 Technology disruption
 Market creation

 Service innovation
Investment in employees

HCL is one of the leading India SPs in the financial services sector

HCL Technologies‘ revenue in Asia/Pacific surged by 81.5% to US$64 million in 3Q07

It‘s beginning to win some of the larger deals in the region where it has beaten out some of the
higher-profile competition (Fonterra Co-operative Grp-ANZ)

HCL Technologies has been successful in increasing the average deal size by going after larger and
more complex engagements with its customers

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HCL Technologies – A Key player in the Hong Kong
IT Services Market

36
HCL Technologies – A Key player in the Singapore
IT Services Market

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IDC praises HCL‟ s shift in focus from volume to
value in APAC

With its new value-centric approach, HCL Technologies aims to drive higher revenue and to gain market share from the other
Indian service providers (TCS, Wipro, Infosys & Satyam), as well as challenging the traditional leaders like IBM and Accenture
in the IT and business services market place

HCL Technologies' next phase of their transformation strategy is based on five main pillars:
 Pricing innovation
 Technology disruption
 Market Creation
 Service Innovation
 Investment in Employees
HCL Technologies' transformation strategy has delivered impressive results
 revenue in Asia/ Pacific surged by 81.5% to US$64 million in Q307
 Share of Asia/ Pacific revenues in global revenues has also increased from 11.8% in Q306 to 15.0% in Q307
The company is beginning to win some of the larger deals in the region where they have beaten out some of the higher profile
competition
 signed a key application outsourcing deal with Fonterra Co-operative Group in New Zealand worth approx USD 35 Million
 The deal highlights how the company is diversifying from its traditional strong vertical, namely financial industry, into
other verticals
HCL Technologies has been successful in increasing the average deal size by going after larger and more complex
engagements with their customers
This trend shows HCL Technologies' ability to engage in a business solution type of engagements with its customers
IDC believes they will be able to grow the revenues much faster than their customer acquisition

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Ovum sees HCL as a strong contender in Europe

 HCL is a company that works very hard to differentiate itself from the pack of Indian outsourcers

 HCL has very healthy growth and profitability indicators, which put it in a good position to expand and
invest in new capabilities, geographies and verticals

 HCL has a much more balanced service line portfolio compared with its Indian peers, with much
stronger infrastructure and BPO service lines.

 HCL positions itself away from commodity ADM work and into higher-value ‗transformational‘
outsourcing

 HCL is a leader in its peer group in terms of offshore RIM services, and is well placed to pick up
expected growth in demand for these services

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Ovum recognizes HCL‟ s position in the European
RIM Market

 HCL has made a notable impact on the European RIM markets (particularly in the UK) in recent years

 HCL‘s current aim is to move beyond this and into infrastructure and business process services as part of
an ongoing strategy to sustain growth rates, and achieve deeper customer penetration

 growth rates in infrastructure management are significantly ahead of broader market growth

 The current market demands suppliers to be flexible in how they engage and work with in-house IT
teams

 For example, HCL uses its ‗co-sourcing‘ model to emphasis its position as a collaborator

40
HCL‟ s value framework and methodology makes
waves

Adding business value for customers is an increasingly important focus of the

service provider industry

HCL has defined the concept of a ‗value framework‘, which is used to model not only
the context of the service provider and customer within the service delivery
relationship, but also the high-level context of the customer‘s business with external
parties

HCL‘s framework recognizes that either or both parties in the service delivery
relationship can be beneficiaries of particular measures to add value

Its case studies from one prominent customer in the financial services sector show
that HCL conceived changes to business processes, and the underlying technology
that delivers savings of over US$850,000 annually, without additional contractual
costs

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