Overview

HCL Technologies (NSE:HCLTECH) is a next-generation global technology company that helps enterprises reimagine their businesses for the digital age. The company's technology products, services and engineering are built on four decades of innovation, with a world-renowned management philosophy, a strong culture of invention and risk-taking, and a relentless focus on customer relationships. With a worldwide network of R&D, innovation labs and delivery centers, and 150,000+ ‘Ideapreneurs’ working in 46 countries, HCL serves leading enterprises across key industries, including 250 of the Fortune 500 and 650 of the Global 2000. HCL generated consolidated revenues of USD 9.94 billion for 12 Months Ended 31st March, 2020.1

The company offer an integrated portfolio of products, solutions, services, and IP through its Mode 1-2-3 strategy built around Digital, IoT, Cloud, Automation, Cybersecurity, Analytics, Infrastructure Management and Engineering Services, amongst others, to help enterprises reimagine their businesses for the digital age.

Product and Services

IT Infrastructure Management Services

HCL's IT infrastructure management services have some of the most impressive credentials in the IT vendor landscape. HCL Technologies has not only executed complex global IT transformation exercises but also helped run efficient IT infrastructure services for some of the world’s leading companies. HCL Technologies has consistently been recognized by leading independent analysts such as Gartner, Forrester, IDC, Everest, and others as a leader in core IT infrastructure management services. HCL Technologies has also won acclaim for its proven track record of successful, high-complexity delivery, customer satisfaction, and innovative solutions.2

Services

  • Next Generation Data Center Services
  • Digital Workplace Services
  • Next Generation Network Services
  • Cloud Native Services
  • Cyber Security & GRC Services
  • Service Integration & Management
  • Application Operations
  • Mainframes and IBM i (AS/400)

Products

  • WorkBlazeTM
  • Cloud Inception
  • VelocITy
  • Evolve
  • HCL’s SecIntAl
  • EdgeLITy

Applications

HCL brings in-depth knowledge and expertise across a broad spectrum of industries. The combination of its services portfolio and its lean industrialized delivery model sets HCL apart and provides exceptional value for its customers.3

The company's key competencies include –

  • Integrated service offerings for end-to-end global applications lifecycle management
  • Creative commercial models that allow for business-aligned and outcome-based contracts
  • Deep enterprise application integration solutions capabilities and skills across key industry verticals
  • Capabilities of providing knowledge management consulting services to leading global companies
  • Business application consulting capabilities through deep domain experience and technology expertise
  • Global labs and innovation centers dedicated to transforming ideas into real-world solutions
  • World class partnerships across its core capabilities

Services

SAP Services

  • Microsoft Services
  • Oracle Services
  • Quality Assurance & Testing Services

Engineering and R&D Services

Customers Seek Best-In-Class Product Experiences

Today, the most successful organizations across industries have a few things in common. They strive to improve customer experiences, align to tech trends faster, and are extremely efficient in their R&D investments. It is no longer sufficient to simply design products that meet customer needs. It’s now imperative to create an engaging relationship as well. With products having shorter lifespans and customers having more options to choose from, the real lifetime value of a customer can only be realized by companies who are consumed with a determination to provide differentiated and flawless customer experiences.4

Enabling Next-generation Enterprises

In an environment of increasing product complexity and dynamic markets, the success of a global organization will be defined by its ability to control product costs, leverage productivity gains, and enable seamless intersection of embedded software and hardware. The Next-generation Enterprise must also facilitate the success of smart products and enable efficient calibration of all operations for a smooth transition from asset-led to information-driven processes.

Services

  • Systems & Hardware Engineering
  • Embedded Engineering
  • Digital Engineering
  • Software Engineering
  • Mechanical Engineering
  • Experience Design And Engineering (Edge)
  • VLSI Design Services
  • Product Lifecycle Management
  • Product Testing And Verification
  • Devops
  • Stride
  • Cognitive Product Support
  • Digital Manufacturing

Solutions

  • Electronic Device Automation Testing (Edat)
  • Intelligent Sustenance Engineering (Ise)
  • Intelligent Tech Support (Its)
  • Platform Acceleration Suite (Pas)
  • Platform For Acceleration Of Nexgen Engineering Analytics (Pangea)
  • Protel
  • Network Service Assurance
  • Test Automation Framework (Taf)
  • Hcl Optimus

Digital Process Operations

Technology is fast changing the fundamental nature of businesses.Organizations which were once world leaders in their space are now giving way to new age technology-led innovative business models led by next-gen dynamics. Changing business landscape and evolving customer expectations is disrupting the erstwhile traditional cost/labour arbitrage BPO services.5

Legacy processes are getting streamlined through innovative process centric methodologies to make them more standardized, agile, and lean. To remain competitive in the shifting technological paradigm, businesses are leveraging digital technologies like automation, analytics, and IoT. AI & machine learning is augmenting humans to create digital workforces of tomorrow. The objective is to reduce costs, manage risk & compliance, provide sustained profitable growth, and create superior customer experience enabling them to transform to the enterprises of tomorrow.

To help businesses address the changing industry paradigm, HCL Digital Process Operations (DPO) with its digital services and solutions is reimagining the role of technology from being a driver of marginal efficiency to an enabler of digital innovation and business performance.

The company's Process-First, Technology-led Digital Operations approach helps organizations better manage their overall goals. The company's approach focuses on helping organizations redefine their traditional inverted operations pyramid to an upright three-stacked digital operations pyramid.

Horizontal Services

  • Finance & Accounting
  • Supply Chain Management
  • Digital And Content
  • Automated Product Support
  • Cognitive Automation

Vertical Services

  • Banking
  • Capital Markets
  • Insurance
  • Life Science
  • Healthcare
  • Retail
  • Utilities
  • Telecom
  • Hi Tech & Manufacturing
  • Consumer Packaged Goods (Cpg)

Cloud Native Services

The true potential of the cloud is unleashed through powerful, delightful, and resilient applications. But there is no such thing like a “typical cloud application.” Different choices of cloud computing technologies and platforms exist for a reason; they each address specific use cases and needs. Whether you are building a Cloud-native application from the ground-up or modernizing/migrating existing applications to Cloud-native platforms, HCL integrates Cloud engineering competency across a wide gamut of proven cloud technologies and domains to help you design, develop, integrate, and launch effective applications.6

SaaS SERVICES

Since Salesforce.com became a household name, the Software as a Service (SaaS) industry is growing at a phenomenal rate – with enterprises opting for software to be delivered to them as a service, rather than expensive multi-year licenses. Today, SaaS solutions are not only available for the most common horizontal business needs, but also for an expanding array of vertical-specific applications. While it is easier than ever to replace your existing on-prem application with a third-party SaaS option – thus reducing cost and improving quality of service - it has also become more confusing than ever for businesses.

HCL SaaS services can help to “Walk you to the Cloud” right from consulting, assessment, evaluation and selection, implementation, integration, and cloud strategy migration to user training, UATs, and handover. The company's services are supported by an extensive network of strategic SaaS industry partners, which is constantly expanding to include cutting-edge and innovative SaaS vendors.

Cloud Platform

The Rapid Growth Of Cloud-Based Infrastructure Services And The Underlying Technology Has Been Fueled By Real Enterprise Needs Such As:

  • Rapid Scale
  • Flexibility And Choice
  • Ease Of Integration
  • Cost Reduction And Pay Per Use
  • Low-Cost And Automated Platform Operations

Services

  • Cloud Platform Set-Up
  • Infrastructure Automation
  • Near-Zero Touch Operations
  • Service Management
  • Service Orchestration

Cybersecurity

The company's “Dynamic Cybersecurity Framework” helps its customers move from a “Static” to a “Dynamic” posture to deal with an ever-escalating threat landscape, offering full spectrum of services.7

Services

  • Strategy, Architecture & Consulting Services
  • Transformation & Integration Services
  • Managed Services

Solutions

  • SAFE
  • SecIntAl
  • Brics
  • Digi-I-Fort
  • Idaas
  • iBCM-iDRM

Digital & Analytics

After building powerful, immersive, as well as experiential platforms and infrastructure for more than 50 global customers, the company understand that digital is a journey into fundamental business transformation that begins with reimagining existing business processes and user experiences. The company's team of design-thinkers & industry-process experts help its customers break down barriers by combining deep knowledge of business processes with user-centered design principles – to truly visualize the potential of digital technology. HCL’s Digital & Analytics services brings its entire gamut of expertise – from consulting to implementation – to ensure that digital journeys can enable an end-to-end IT its transformation.8

FENIX 2.0

FENIX 2.0 is an industry aligned execution framework that helps organizations rewire their core DNA to realize digital transformation objectives.

Services

  • Digital Consulting
  • Digital Applications & Platforms
  • Data & Analytics

Solutions

  • Consumer Brand Interaction Platform
  • Enterprise Content Management Platform
  • Digital Marketing Solutions
  • Data Movement Framework

DRYiCE

DRYiCE is a dedicated and rapidly growing software division of HCL that delivers best-in-class implementations of AI for enterprises. The company's exclusive products and platforms enable enterprises to operate in a leaner, faster, and cost-efficient manner, while ensuring superior business outcomes.9

IoT WoRKS™

The company's Approach is structured around the emergence of an IoT ecosystem which has given rise to an asset

value chain comprising of connections of things, data, process and people.10

Offering

The company's Define, Build & Run offering and IoT solutions cater to organizations at different IoT adoption levels.11

Soltions

  • IoT WoRKSTM FORCE
  • IoT WoRKSTM ASSET
  • IoT WoRKSTM SITE
  • IoT WoRKSTM TRANSFORM

HCL Software

HCL Software is a division of HCL Technologies (HCL) that operates its primary software business. It develops, markets, sells, and supports over 20 product families in the areas of DevSecOps, Automation, Digital Solutions, Data Management, Marketing and Commerce, and Mainframes. HCL Software has offices and labs around the world to serve thousands of customers. Its mission is to drive ultimate customer success with their IT investments through relentless innovation of its products.12

Products

  • Automation
  • Commerce & Marketing
  • Data Management
  • Secure DevOps
  • Digital Solutions
  • Mainframes
  • Innovations

SIAM/XaaS Products & Advanced Services

Increasing complexity drives IT service management outsourcing buyers to re-evaluate their service integration and management strategy. HCL facilitates the assessment of the right SIAM service integration and management model. The company's two-fold approach toward IT service integration helps enterprises overcome the challenges associated with integrating and aggregating the supplier ecosystem. The HCL SIAM model ensures conducive conditions for collaboration by aligning the ecosystem with customer demands. The SIAM solution drives strategic innovation and collaboration in the ecosystem, while maintaining competitive tension.Additionally, the HCL SIAM gold blueprint provides an aggregation solution, a service management platform, and an industrialized “service bus”. Together, they enable a strong process framework for integration of disparate IT providers, driving greater visibility into operational performance for improved decision-making. This, in turn, ensures better accountability, trust, transparency, and effective performance management in the ecosystem while establishing a collaborative ethos.13

With the shift towards Gen 3.0, the adoption of HCL’s Service Integration and Management framework will deliver efficiency, hybrid cloud model adaptation, and a greater supplier management synergy.

Solutions

  • HCL SIAM ServiceNow Gold BluePrint
  • HCL ServiceXchange
  • HCL XSM
  • HCL Service Integration Bus

Services

  • SIAM Operations
  • SIAM Assessment
  • SIAM Consulting and Implementation

Enterprise Studio

Digital transformation isn’t easy. It requires you to move quickly from idea to outcome as you build, integrate and adopt resilient enterprise solutions. By addressing these IT challenges while enabling digital and cultural transformation, your IT and business teams will achieve better outcomes with longer-lasting benefits.14

Hence its reason for being. The company's team’s deep technical knowledge across domains has earned it the status of Broadcom Preferred Services Partner. No matter your industry or the stage of IT maturity your organization has reached, its technologists, coaches and educators will help you reach your goals.

Services

  • Digital Advisory and Consulting Services
  • Adoption Services
  • Application Management Services
  • Packaged Solutions

Financial highlight

On May 7 HCL Technologies reported a 22.8 per cent year-on-year (YoY) rise in consolidated net profit at Rs 3,154 crore compared with Rs 2,568 crore in the same quarter last year. On a sequential basis, profit was up 3.8 per cent over Rs 3,037 crore profit the company reported in December quarter.15

Revenue for the quarter rose 16.3 per cent YoY to Rs 18,590 crore from Rs 15,990 crore reported in the year-ago quarter. Sales were up 2.5 per cent on a sequential basis over Rs 18,135 crore in the third quarter.

In dollar terms, revenue rose 11.7 per cent YoY to $2,543.40 million from $2,277.80 million. On a sequential basis, dollar sales were flat. Sales growth in constant currency terms rose 13.5 per cent YoY to $2,584.60 million.

The company did not give any revenue or margin guidance.

Ebit margin for the quarter expanded 180 basis points to 20.90 per cent from 19.1 per cent YoY. Sequentially, the margin expanded 70 basis points over 16.8 per cent in December quarter.

HCL Technologies said it signed 14 transformational deals in the fourth quarter. These deals were mainly secured in verticals such as telecom, hi-tech, retail & CPG, manufacturing and financial services.

The company, however, did not disclose the deal amount.

The IT firm said it activated its coronavirus business continuity plan at the end of January and now has 96 per cent of its employees working from home and another 2.5 per cent of its employees working from HCL or client locations.

Looking ahead, HCL Technologies is confident that its capabilities, its balanced portfolio, strong client relationships and financial strength will help it navigate this crisis and emerge stronger," said President and CEO C Vijayakumar.

HCL said, during the quarter, it had a strong renewal booking momentum. It added 1250 employees during the quarter, taking its total employee headcount to 1,50,423.

Key achievement

HCL signed 14 transformational deals in Q4 FY’20, led by key industry verticals Telecom, Hi-Tech, Retail & CPG, Manufacturing and Financial Services. In FY’20, HCL signed 53 transformational deals led by industries such as Manufacturing, Retail and CPG, Life Sciences and Healthcare and Hi-Tech among others.16

During the quarter, HCL had very strong renewal booking momentum, made possible due to its flawless execution and customer satisfaction. This includes some of the largest clients of HCL across the globe across industry verticals.

HCL Software continued its operational momentum in Q4, FY’20 as it completed over 5,500 sales transactions for the quarter and onboarded more than 2,000 partners for the fiscal year. HCL Software’s investment in its products resulted in over a dozen major and minor product releases this quarter. Most notable were the product launches for AppScan V10, Unica V12, and BigFix V10. AppScan and BigFix lead HCL Software’s offering in the secure DevOps and the security & automation spaces.

At the World Economic Forum’s Annual Meeting in Davos this year, HCL Technologies facilitated discussions on the convergence of technology innovation, human ingenuity, and critical thinking through a series of thought leadership discussions. HCL led business leaders across sectors in discussing the future of digital innovations related to the demographic, societal and technological trends shaping today’s interdependent complex world.

HCL was named a Top Employer across Europe for providing the best working environment for employees through its progressive ‘people-first’ HR practices. HCL received this recognition for the 14th consecutive year in the United Kingdom and for the first time in Sweden, Germany, the Netherlands, Poland, France and South Africa.

HCL announced the launch of a Global Delivery Center (GDC) in Hartford, Connecticut, USA to offer digital transformation services to clients in the smart manufacturing, insurance, aerospace, and defense industries. The GDC will help in bringing advanced digital and transformative capabilities to enhance the customers’ agility and ability to respond to emerging business needs.

In FY’20, a total of 29 patents were filed, of which 3 were filed in Q4 in the areas of assigning dynamic operation of devices in a communication network, determining a location of an explosive device and an innovative approach to execute manual test cases on a targeted platform without generating code. During FY20, a total of 16 patents were granted, of which 10 patents were granted this quarter, filed in the areas of code reusability, sharing of source code, remotely assessing a user device, reconfigurable convolution accelerator, automated bug fixing, employee management, multi-level amplitude modulation and demodulation, optimizing storage and retrieval of a stock keeping unit, circuit design methodology, and debugging network environment.

Value Portal, a unique grassroots innovation platform that enables employees to contribute their unique ideas and create value to customers and HCL generated 2,383 ideas in Q4 while 1109 were implemented.

HCL announced its entry in Sri Lanka with the establishment of its GDC in Colombo. Marking its presence within the region, HCL aims at boosting employment, providing resources and skilling the local talent to serve its global clients. A key part of HCL’s business and development strategy in Sri Lanka will be to generate local employment and provide the right skilling programs that will augment the growth of the knowledge services industry in the island country. Collaborating with the Board of Investment of Sri Lanka, HCL’s local entity – HCL Technologies Lanka (Private) Limited will implement its Work Integrated Education Program to foster growth by actively cooperating with local ICT and engineering institutions to develop and train the island’s talent pool.

COVID-19 Response

Of the total number of HCL’s global employees, presently 96% are working from home and another 2.5% are working from offices.

References

  1. ^ https://www.hcltech.com/about-us
  2. ^ https://www.hcltech.com/it-infrastructure-management-services
  3. ^ https://www.hcltech.com/systems-integration
  4. ^ https://www.hcltech.com/engineering-rd-services
  5. ^ https://www.hcltech.com/digital-process-operations
  6. ^ https://www.hcltech.com/cloud#cloud_native_applications
  7. ^ https://www.hcltech.com/cyber-security-grc-services#ourservices
  8. ^ https://www.hcltech.com/digital-analytics-services
  9. ^ https://www.dryice.ai/about-dryice#value
  10. ^ https://www.hcltech.com/Internet-of-Things-IoT
  11. ^ https://www.hcltech.com/Internet-of-Things-IoT#our_offering
  12. ^ https://www.hcltechsw.com/wps/portal/about
  13. ^ https://www.hcltech.com/services/service-integration-and-management-siam
  14. ^ https://www.hcltech.com/enterprise-studio
  15. ^ https://economictimes.indiatimes.com/markets/stocks/earnings/hcl-tech-q4-results-profit-jumps-23-yoy-to-rs-3154-crore-beats-street-estimates/articleshow/75591668.cms
  16. ^ https://www.hcltech.com/sites/default/files/hcl_tech_q4_2020_investor_release.pdf
Tags: IN:HCLTECH
Created by Asif F on 2020/05/25 09:19
     
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