An Introduction to the IT Industry:

With HCL as an example

Anand NarayananCorporate Marketing

The Information Technology Landscape: A worldview

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Source: HCL Strategic Intelligence Wing, Bloomberg database as on 1st July 2011

There are 3150 companies in the Bloomberg database belonging to IT Sector (Hardware, Software,

and Services).

Of the 3150, 345 (11% of total) recorded 5-year

Revenue CAGR greater than 25%.

Of the 345, only 13 (0.4% of total) had revenues

greater than $2.5 Billion.

Of the 13, only 8 (0.3% of total) had market cap

greater than $5 Billion.

UNDERSTANDING HCL

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A Quick Snapshot

$6

3190000

BILLION

COUNTRIES

PEOPLE

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Strong belief in three core values

To know more about HCL, look for “Employees First” on YouTube

The Business of an IT Services Company

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The Indian Top-5 grew 5x faster than the Global Top-5 over the last 2 years

~54% growth in IOP Market Share Share of IOP in Incremental Revenues ($24 BN)

35%

27% 25%20%

15%

9%7% 5%

2% 1%

CTS HCL TCS Infosys Wipro Accenture Capgemini IBM HP CSC

87% 83%

13% 17%

TTM'Sep09 TTM'Sep11

Global Top 5 Indian Top 5

55%

45%

Global Top 5 Indian Top 5

Trends in the Technology sector – IT Services Level Playing Field and IOP relevance….

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Growth of Indian IT (vs HCL’s Growth)

JFM'09 AMJ'09 JAS'09 OND'09 JFM'10 AMJ'10 JAS'10 OND'10 JFM'11 AMJ'11 JAS'11 OND'11

18.2%

21.0%

25.8%

28.5%

21.4% 21.5%

27.6%

32.6% 33.5%

30.5%

24.7%

18.3%

-2.0% -3.0% -3.8%

6.0%

14.9%

19.6%

26.5% 26.4% 25.6% 24.8%

19.5%

15.5%

HCL Average (Top 3)

Yo

Y G

row

th

How does HCL go to market: GTM structure

56%27%

17% US

Europe

ROW

21%

18%

32%

24%5%

Enterprise Application Services

Engineering and R&D Services

Custom Application Services

Infrastructure Services

BPO Services

Service Lines

Geography

Verticals 26%

28%9%8%

7%8%

7% 6% Financial Services Manufacturing

Telecom Retail & CPG

MPE Healthcare

E, U & Public Sector Others

CY11 vs CY10 (YoY Growth)

19.8%

29.6%

45.9%

20.4%

22.0%

32.6%

34.8%

-2.5%

29.4%

32.7%

2.0%

27.2%

17.1%

24.3%

35.4%

29.9%9

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What to look for: Beyond simple numbers

Client recognize value employees createHCL Revenue per Employee is among the highest in the

Indian IT.

HCL Client Concentration HCL Revenue per Employee

Increasing significance with clientsOver last 3 years, Number of $10mn+ and $20mn+ have more

than doubled. $50mn+ clients have tripled.

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Brand Matters: HCL is positioned as ‘the CIO’s best friend’

* Source: Gartner Report published 19th Jan 2011 [ID Number: G00209906]

Clients increasingly focus on the business benefits from their vendor relationships, rather than efforts-based procurement

HCL will not strive to compete in business consultancy services. It will focus on making the CIO successful in driving that technology-led business transformation by being its most trusted technology partner

From client satisfaction to client happiness — HCL continues to improve client satisfaction. This also encapsulates greater intimacy with its customers through its customer advisory council (CAC) that continues to lay out the roadmap for the overall transformation process

THE ROAD AHEAD

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5 Mega Trends that you need to be aware of

1Clients looking at output not Input

From procurement-led to business benefit-led buy

From best efforts to Integrated solution buy

From relationships to value

2Transformation is in the interface of multiple technologies

Technology will lead strategy to increase business competitiveness (Digital, Pro-activity, High volume, new consumer etc.)

3Complexity is increasing

Application skill landscape will change (Cloud, BI, SOA, Lean, Virtualization, Enterprise solutions)

Pyramid models will become obsolete

4From global delivery to global business

Social responsiveness Emerging markets Protectionism

5Innovation moves to the Edge

Mobile Phones vs. PCs Social networking

technologies dominating

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So what does this mean to you? A few tips

Understand existing and emerging technologies

Probably the most fundamental competency that all IT professionals need is a deep and broad knowledge base in their bread-and-butter technical skill sets.

If you go for certifications, remember your goal is not simply to put more letters after your name but to maximize the value of the educational experience.

Communicating and listening; gathering information

Be mediocre at everything else but be perfect at this: communication. It’s one of the key competencies everyone must have, and it’s especially important for IT pros.

Creativity and Innovation

There is always acceptance of productive breakthrough ideas and IT Cos constantly brainstorm ideas by not only involving the top management but also by pooling in ideas from all the employees.

Thinking strategically

It’s an increasingly competitive world, and today’s IT professionals must prove, every day, that they can add tactical and strategic value and that they belong and are welcome at any meeting taking place anywhere in their organizations.

Being adaptable

Gone forever are the days when being a technology professional meant having expertise in a particular development environment or being able to build and support a network. But to become a truly well rounded IT professional, you need to work constantly on expanding and honing your skills.

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Brief introduction of MAD LTD

Creativity and Innovation are critical assets for any IT organization.

New ideas are the backbone for a sustainable business in IT industry. E.g. EFCS was a breakthrough innovative idea

which transformed HCL.

HCL takes initiatives to pool in ideas in and outside the organization through its MAD LTD (Make a Difference, Lead the Difference) program.

Further details can be found on www.madltd.com or the MAD LTD FB Page.

MAD LTD is a launch pad from where participants can make a difference to the society and bring their idea to realization with support from HCL.

The campaign runs in and out of HCL pooling innovative ideas, scrutinizing for their feasibility and commercialization.

The program aims at the youth predominantly students in engineering and management colleges.

MAD, within HCL, has given birth to innovative ideas and solutions.e.g. Customer Onboarding Solution offered by HCL.

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Questions?

Don’t forget to watch the Employees First Effect on YouTube