Expert Speak

System Integration is the Key Growth Area for HCL


In the last 5 months, HCL Infosystems has bagged Rs. 1200 crores worth of orders. The company has also expanded its verticals. Entering new solutions segments, it has also secured orders from new customers across industry verticals. This write-up focuses on the company’s activities in a few key areas.

Glimpses from 2007-08 business

In 2007-08, HCL’s consolidated revenue touched Rs. 12,605.3 crores (Year ending on June 30, 2008). In this period, the company’s Service business grew by 35% from Rs. 360 crores to Rs. 485 crores. Also, its non-telecom distribution business grew over 270% during FY 07-08.

Revenue from Computer Systems business took the revenues for the year to Rs. 3388.9 crores – a growth of 14%. The same from Telecommunication and Office Automation business took the revenues to Rs. 9222.8 crores.

In the words of Ajay Chowdhry, Chairman and CEO, HCL Infosystems, “The year saw good momentum being added to our System Integration business. Going forward, we see the momentum in our growth strategy with a continuous focus on our business. We intend to continue building distinctive positions in each vertical and horizontal service areas that HCL is addressing.”

Company’s strategy

The company is running on a three-pronged strategy that was formed two years back. Thenceforth, HCL set in motion a process of transformation to leverage the emerging opportunities of tomorrow. The strategy categorically stresses on deriving Profit from Core, Renewing the Core and Marching beyond the Core.

According to the company, this process of transformation has built up momentum with HCL leveraging its core strengths – by combining products and services to build a system integration practice with vertical domain specialization to create SI solutions and services for its customers. The company today has built matured practices in the fields of Telecom, e-Governance, BFSI, Power, Media and Entertainment, Retail, Health, Airports and Ports and Railways. Among the newly added sectors, there are Defence, Security and Education.

Major advances in 2007-08

2007-08 was the year for HCL to foray into the ICT export market too. The company has appointed distributors for its IT products in the African continent and the Middle East.

HCL introduced its first notebook with Prism engraved design, another with special piano finish to make these notebooks more appealing.

Launch of products based on Intel Atom technology was also introduced in this year. Launch of next generation ‘HCL Datacenter in a Box’ was also a major step forward to address the demands of the SMEs.

System Integration and Services

As a result of HCL’s strategy of offering a single window to enterprise customers for all their ICT infrastructure and solution needs, the company won orders in e-Governance, Railways, Power, Telecom, BFSI, Airports and Ports, Security, Health, Education, Retail and Media and Entertainment.

Matter of pride

HCL’s foray into Africa was marked by the Pan-African e-Network Project to build IT infrastructure across 53 African countries in Tele-Medicine, and Tele-Education. The project is a Government of India initiative to share Indian expertise in education and medicine, video-conferencing and VoIP services. It will connect 7 Indian universities and 12 super speciality hospitals to 5 African regional universities, 5 super speciality hospitals and 53 learning centers across Africa.

Highly beneficial for the country

The company has also tied up with US company Echelon Corporation to bring Networked Energy Services (NES) and Advanced Metering Systems that offer solutions to improve distribution efficiencies and reduce energy theft.

As two of the major causes behind power deficit (in distribution areas) in India are excessive drawings (beyond permissible limit), especially during peak hours and power theft (either bypassing the meter or manipulating the meter at user’s end), HCL is coming up with major solutions in this area (demand-side), which are expected to bring a major change in the coming days, if accepted and implemented by the power distribution companies across the country.

Incentives for channel partners and retailers

The recently announced HCL Premier League Retailer Program categorizes retailers under Premium, Gold, Silver and Falcon – based on predefined parameters. The retailers under each category will be entitled for special benefits and incentives on sale of HCL Leaptops. As per the company, there are more programmes in store for the channel partners, however, the company is yet to declare its detailed plan on that.

Parting shot

HCL is now actively working in many other areas, which could not be included in this small article. For example, the company has a lot to offer to the emerging Telecom sector. That apart, it is quite active to cater to the fields of Education, e-Governance Digital Lifestyle enhancement and other fields too.

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