This blog post summarizes an upcoming IDC Manufacturing Insights Perspective about the HCL Analyst & Advisory Day, which took place November 8-9 in Boston, MA.
The HCL Analyst & Advisor Day, which took place November 8-9 in Boston, MA, gathered HCL executives and key clients to share the company's strategic vision for addressing today's business issues with digital transformation. Throughout the two-day event, leaders within HCL shared the company's recent financial success and the future growth strategy as it continues to help its customers deliver a differentiated business outcome that yields competitive advantage. At a glance, HCL Technologies Limited reported revenue of $6.4 billion in 2015, representing a CAGR of 12% over the past five years. The company has global coverage in 31 countries, with the Americas and Europe representing the greatest portion of revenue. The manufacturing vertical is HCL's largest, responsible for 33.2% of CY2015 revenue. Over the past 5 years, HCL's Manufacturing practice has grown at a CAGR of 22%.
During the event, leadership shared the success of the re-invention of HCL from an R&D Service company in the 1990s to a global IT outsourcing provider in the 2000s, to today's position providing technology and services to help customers build the "21st Century Enterprise." Among the differentiating offerings that HCL brings to manufacturing customers are the following:
- Digitization Strategy. HCL's growth strategy centers on three "Modes" of service offerings, all with the goal of enabling its customers' digital transformation. Mode 1 is all about providing agile and lean application, infrastructure and BPO services, Currently 85% of annual HCL revenue. Mode 2 includes HCL offerings in the areas of experience-centric and outcome-oriented business services including Cloud, IoT, Digital and Security services, while Mode 3 is an ecosystem-driven products and platforms business that involves collaborating with clients and partners. By 2020, HCL expects its revenue to shift to 65% from Mode 1 and 35% from Modes 2 and 3.
- Impact of Automation. HCL brings to market a strong automation strategy, one that leverages human-machine augmentation and evaluates those human tasks that can be augmented by machines, and those machine tasks that can be augmented by humans. HCL's IP in this area is DRYiCE, an automation and orchestration platform that includes more than 25 interconnected modules to automate tasks across infrastructure, applications, business processes, and engineering.
- Impact of Cloud. HCL's business model regarding infrastructure has been "asset-light," as the company has chosen to forgo building a large footprint of data centers and has recently announced its intent to shut down four of its six data centers in India over the next three years. Instead HCL plans to increasingly leverage existing IaaS providers such as Amazon, Microsoft, and IBM. As a result, the company believes it is in a prime position to help its customers find the best home for their infrastructure in the cloud without having to protect HCL infrastructure revenue. Hybrid clouds are most often the cloud model for its customers and HCL will continue to build out the partner and provider ecosystem to support customer infrastructure.
HCL is moving to adapt its offerings to the changing IT services world. The company has embraced the Third Platform and Innovation Accelerators to help its customers embark upon digital transformation initiatives. With its strong core in engineering service and R&D, HCL plays an active role in key manufacturing verticals helping OEMs bring competitive, and in some cases, disruptive products and outcome-based services to market. Subscribers can read the full report at IDC Manufacturing Insights in January.