Who Is This Quarterly Update For? NelsonHall’s Quarterly Update on HCL Technologies provides a snapshot of developments at the company in the last quarter. It accompanies NelsonHall’s more comprehensive Key Vendor Assessment program.Both programs are designed for:
Marketing, sales and business managers developing strategies to target service opportunities within the BPO/IT Services markets Sourcing managers monitoring the capabilities of existing suppliers of IT and BPO services and identifying vendor suitability for these services Consultants advising clients on vendor selection Vendor marketing, sales and business managers looking tobenchmark themselves against their peers Financial analysts and investors specializing in the BPO/IT servicessector.
Highlights Strong September quarter, bucking the market trendWhere many of its peers reported a softer September quarter, HCL Technologies’ results showed increasing momentum with 12.8% CC y/y growth. Moreover, this growth is primarily organic. Growth was strongestin IT Infrastructure services, boosted by, but not solely due to, the Volvo IT captive acquisition.EBIT margin was also up y/y.Prior guidance for FY17 has been confirmed.New CEOOn the day of the Q2 earnings results Anant Gupta resigned as CEO to “pursue other interests”. Recently appointed COO C Vijay Kumar was announced as CEO with immediate effect.CVK has in recent months been articulating the ‘Mode 1-2-3’ strategy and will doubtless accelerate its execution.Engineering Services consolidatorIn Q3, HCL Technologies should complete two significant Engineeringand R&D services acquisitions; there may be others in the pipeline.IP partnership with IBM expandedIn Q2, HCL and IBM went live with a 15 year strategic IP partnership in the areas of automation and DevOps software, In Q3, HCL and IBM expanded this relationship to include API/web service enablement for mainframes.
Scope of the Report The report provides a quarterly update on HCL Technologies, looking at financial performance and key developments during the period.It accompanies NelsonHall’s Key Vendor Assessment program which looks at HCL Technologies’ IT and BPO offerings, capabilities, and market and financial strengths, including:
Identification of the company’s strategy, emphases and new developments Revenue breakdowns Analysis of the company’s offerings and key service components Analysis of the profile of the company’s client base including the company’s targeting strategy and examples of current contracts Analysis of the company’s strengths, weaknesses and outlook.