Journey of HCL Technologies

Founded in 1976, HCL Technologies (HCL Tech) is a global technology company that delivers industry-leading capabilities centred around engineering, digital, cloud and AI, powered by a comprehensive portfolio of technology products and services. The company mainly offers a wide range of software services, business process outsourcing and infrastructure services. HCL Technologies delivers solutions across various verticals, including government, Retail & CPG, Manufacturing, Public Services, Oil and Gas, Energy and Utilities, Telecom, Media, Publishing and Entertainment, Travel, Transportation and Logistics, Financial Services, Life Sciences and Technology Healthcare Services. The company has more than 2,23,400 employees across 60 countries. They have over 200 Delivery Centers, over 60 Innovation Labs, 10,000 clients using their products and software, and more than 2,000 Patents. HCL Technologies launched its IPO in December 1999 and was listed on the stock exchanges on January 11, 2000. The IPO received 27X demand for shares. The company has been recognised as a Leader in Everest Group’s Banking Operations Services PEAK Matrix Assessment 2023, Leader in Everest Group’s Unstructured Document Processing Products PEAK Matrix Assessment 2023, Certified as a Global Top Employer and many more.

Business Segments

HCL Technologies is an expert in the following segments:

• Digital:The organization’s comprehensive range of digital solutions, from consulting to implementation, empowers enterprises to enhance their resilience, optimise operations, and enable more meaningful client relationships.

• Engineering:The organization’s Engineering and R&D services (ERS) include product engineering, digital engineering and operational solutions. These services empower enterprises to enhance time-to-profit, fasten product development, and maximise their returns on innovation.

• Cloud:The organization’s distinctive CloudSMART solutions and services include cloud strategy and consulting, data and AI on the cloud, managed cloud services and application modernisation. These empower organizations to efficiently harness the potential of the cloud, driving innovation and scalability.

• Software:HCLSoftware division specialises in the development, marketing, and support of software solutions for digital transformation, data management, analytics, AI, automation, and enterprise security.

There are more than 100 subsidiary companies under HCL Technologies, and some of those include:

• HCL Comnet Systems & Services Limited - This company delivers bandwidth services.
• HCL Technologies (Shanghai) Limited - This organization has been bringing forth IT services in Greater China for over 17 years.
• HCL Training & Staffing Services Private Limited - This company delivers hiring and training services across different regions in India.

Key Personalities of HCL Technologies

• Shiv Nadar, Founder

HCL Group originated as by Shiv Nadar. He is also the Chairman Emeritus and Strategic Advisor to the Board of HCL Tech. He started his career as part of the elite DCM management trainee system. HCL was one of the few IT companies in the world founded in the 1970s and continues to exist to date.

• C Vijayakumar, Chief Executive Officer and Managing Director

Vijayakumar joined HCLTech about 30 years ago. He was a part of the core team that designed and executed India’s first-ever fully automated trading network at the National Stock Exchange. Before that, he was the President of HCLTech’s Infrastructure Services Business. Vijayakumar is a Board Member of the U.S.-India Business Council and a member of the World Economic Forum’s IT Governor’s Community.

Corporate Actions

• Bonus:HCL Tech declared 2 bonus issues:

-  In 2019: The record date for the bonus share was December 7, 2019, with a bonus ratio of 1:1. -  In 2015: The record date for the bonus share was March 20, 2015, with a bonus ratio of 1:1.

SWOT Analysis

Strengths

• HCL Technologies has a high-grade R&D team that mainly core priorityes on innovation.
• The organization is widespread in 60 countries, and they have a huge client base, which includes big players like Deutsche Bank, Ulta Beauty, Microsoft, etc.

Weakness

• The organization faces huge competition in the market from other prominent players like Infosys and TCS.
• In 2016, the organization lost $1.5 billion in contracts. This is due to the challenges it faced in retaining existing clients.

Opportunities 

• The organization can help more enterprises in the Asia-Pacific and Europe regions in their digital transformation.

Threats

• The organization can face foreign exchange-related losses.
• The organization can face a threat in the aspect of outsourcing, which depends on the relations between India and the USA.