HCL TECHNOLIGIES(A)

GROUP 3 – AJAY, ZIYAD, MISHAL, MANJULA, NIKHIL, RENIL

1.WHAT WERE THE CHALLENGES FACING HCL TECHNOLOGIES WHEN
VINEET TOOK OVER?

• Behind Indian and MNC competitors (Wipro, TCS, Infosys, IBM, Accenture)
• Government began to deregulate, multinationals like IBM returned, adding more competition
• Hardware became commoditized ,HCL was more into hardware.
• Software & services became trend in 1980 – 1990
• Customers were increasingly demanding integrated services for competitive advantage
• Off shoring recoding and application development work to India to take advantage of lower cost
• Customers cancelling contracts, huge challenges in Sales and delivery
• HCL not able Differentiate, Need to improve operational efficiency, Not innovative, weak attitude of employees
• HCL’s future
• Brand name getting destroyed(Cannot compare with Wipro,Infosys,TCS
• Attrition rate gaining to 30% much higher than industrial standards
2.WHAT WERE VINEET 'S KEY MOVES? CAN THE MOVES BE LINKED TO THE KEY CHALLENGES FACING HCL? HOW EXACTLY?

• 3 day blue print meeting with 100 Managers discussing importance of going big deals and
competing with big players by differentiate ourselves and offer multiservice, unique propositions
• 3 phase strategy, focused on value-centricity
• Rejuvenating employees and improving operating efficiency-2 years
• Employee First Customer Second(EFCS)

• Strategic Partnership, larger & complex Engagements to offer more value and end to end service
• By 2010-Change Business Model(50% of revenue form services
• Sales
• Mirror Mirror-interacting with Employees & motivating(Transformation, reveals current situation)
• Communication and marketing team(young sparks)
• Centralisation, Integration
2.WHAT WERE VINEET 'S KEY MOVES? CAN THE MOVES BE
LINKED TO THE KEY CHALLENGES FACING HCL? HOW
EXACTLY?
• 2 operating groups
• 7 person Management consult for delivery
• 5 Management consult for Sales
• Closely working with team and visiting maximum locations,Townhalls
• 360 Development reviews
• 5 lines of business for setting the structure & system(Applications, Enterprise
consulting,technology,Infrastructure and capital markets)
• Second finance group (Business finance)that would directly participate with sales &
Delivery on bringing in Value added business.
• In multi service delivery-cross functional groups
• Employee friendly Intranet & automation for transparency
• Trust pay
• Important Key Move: EFCS
3.HOW EFFECTIVE HAS VINEET BEEN IN LEADING HCL FROM THE
FRONT IN IDENTIFYING AND IMPLEMENTING THE KEY MOVES?

• Attrition rate declined to 19.5%,Employee morale improved

• Synergy between departments
• Nov 2005, $50 million Autodesk deal, California based (1 st big deal)
• Dec 2005, won strategic partnership agreement with Japan’s Second largest steel manufacturer
• Jan 2006, HCL won $330 million DSG International deal (India’s largest outsourcing deal)
• Visibility to unit rates, Productivity improvement, offered unique proposition, something
different from competitors
4.WHY "EMPLOYEE FIRST CUSTOMER SECOND'? IS THIS A GOOD IDEA? SHOULD VINEET ANNOUNCE THIS STRATEGY AT THE FEBRUARY 2006 GLOBAL CUSTOMER MEET?

• Service industries employee interface with customer is critical. Investing in employee’s

development & unleashing their potential to produce bottom line result.
• Yes, it’s a good idea & he should announce
• Value centric leadership goal could only be achieved with an engaged employee. Setting
clear priorities, investing in employees development, and unleashing potential to produce
bottom line results.
THANK YOU