The fun of being being different Vineet Nayar A p roud proud HCLite

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1 The fun of being different Vineet Nayar A proud HCLite

2 Wake up call in 2005 Client CIO needs Alternative to Big-4 due to dissatisfaction with integrated deals Insatiable desire to optimize and reduce cost Pay for performance Need for transformational gains HCL response Trust through Transparency Value Centricity Employees First Innovation in what and how of Service Offerings 2

3 HCL Performance during the last 2 years Customer Satisfaction Index up by per cent Bn new Transformational Deals Won Revenues grown by per cent YoY during CY09 per cent incremental Market Share Gain 3

4 HCL Strengths (As defined by our Customers*) Entrepreneurial Broad based Highly Customer Culture Services Engaged People Aligned Engineering DNA Skin in the game Most balanced portfolio Globally competitive Leadership Aligned with commitment customer s Employees First strategy Transparency 70 CIOs/ CTOs form the HCL Customer Advisory Council It It s good to do business with HCL * Source: HCL Brand Workshop conducted with HCL CAC members Oct/ Nov

5 HCL Strengths (As discovered by our Investors*) Preferred Superior client Better than No difference vendor for mining others in client in pricing many missioncritical and transformation projects against incumbents satisfaction Top 22 Investors interacted with key Clients, Independent Directors and Employees HCL HCL opens a new dimension i in Transparency * Source: IIFL Report on HCL Technologies, 3 rd Nov

6 What got us here, won t take us there... // LOOKING AHEAD

7 5 Mega Trends 1 Clients looking at output not Input From procurement-led to business benefit-led buy From best efforts to Integrated solution buy From relationships to value 2 Transformation is in the interface of multiple technologies Technology will lead strategy to increase business competitiveness(digital, Pro-activity, High volume, new consumer etc.) 3 Complexity is increasing 4 Application skill landscape will change (Cloud,BI, SOA, Lean, Virtualization, Enterprise solutions) Pyramid models will become obsolete From global delivery to global business Social responsiveness Emerging markets Protectionism 5 Innovation moves to the Edge Mobile Phones vs. PCs Social networking technologies dominating 7

8 What got us here, won t take us there... // INVESTING AHEAD

9 6 Areas of Departure STRATEGIC ACCOUNT MANAGEMENT BUSINESS ALIGNED SERVICES FROM SATISFACTION TO HAPPINESS FROM GLOBAL TO LOCAL CREATING THE TALENT ADVANTAGE BACKING THE REINCARNATE CIO 9

10 1a Strategic Account Management Value-Aligned Sales Merck $500 Mn EFH/ Oncor $110 Mn HE EALTHCARE EAS INFRA ETS EAS INFRA RDA $350 Mn Viacom $50 Mn RETAIL PUBLISHING INFRA EAS ETS M&E ERS 10

11 1b Strategic Account Management Value-Aligned Delivery Integrated Services Delivery (ISD) DPSG HCL Client Partner ENTERPRISE APPS INFRA RETAIL CUSTOM APPS Business-metrics ti di driven Single SLA Ownership Complete alignment with client overall objectives Reduces process redundancies Managed services Multi-Service Delivery (MSD) XEROX ENTERPRISE APPS INFRA ENGINEERING SERVICES Sharper management of identified KRAs Higher flexibility/ Business Agility GOVERNANCE 11

12 2 Business Aligned Services 2005 Total IT Outsourcing Started with AMD in 2005 Ended with $3.6bn in deals in the last 2 years 10%-30% Total IT 68% of total wins against Global Savings MNCs 2008 Business-aligned IT Top 20 accounts growth at 37% YoY (FY10), Company growth 24.1% Won 35+ transformational deals in FY10 Business Cost Savings 2010 Business Transaction $100mn deal (logistics major) $50mn deal (FS major) Utilitybased Business Advantage 12

13 3 From Satisfaction to Happiness Strategic Account Management Risk Management Intimacy (CAC, GCM, Value portal) HAPPINESS Transformation Board Delivery assurance Business Aligned Services 13

14 4 From Global to Local Different 8600 Employees Rebadged >$50Mn deal in SA, China, LATAM, Continental Europe CANADA SWEDEN FINLAND Interesting Toronto Sunnyvale Utah Chicago Stamford New Jersey Irvine Dallas Fairfax CARY, NORTH CAROLINA Los Angeles Columbia Houston Mexico City PUERTO RICO Locals Population U.K. Belfast NETHERLANDS KRAKOW, London CZECH REPUBLIC Belgium POLAND GERMANY SWITZERLAND FRANCE 36% US 51% Continental t Europe ITALY Israel 74% Europe (including UK and Ireland) SAUDI ARABIA 90% Brazil, China Dubai INDIA Beijing, China JAPAN SHANGHAI, CHINA HONGKONG MALAYSIA SINGAPORE Table Stakes 10 GDCs (outside India) + Sao Paolo SAO Helsinki LEOPOLDO, BRAZIL 12,000 Employees SOUTH AFRICA Perth Melbourne Brisbane Sydney Auckland Wellington 14

15 5 Creating the Talent Advantage Employees First culture Objective CUSTOMER HAPPINESS Innovation and Value rewarded VALUE ZONE Employees First councils Focus on laterals During the last two quarters (AMJ 10 and JAS 10) HCL revenue market share Total gross hires 14% Lateral talent share 28% 23K+ Total net hires 12K+ 15

16 6 Backing the Reincarnate CIO Applications Data Infrastructure User Business Apps Data Infra High transaction userexperience through Engineering-out-of- the-box Domain-led through Microverticalization Technology-led through ETS EBI (Ecosystem and Business Incubation) vision for Utility IT 16

17 In Summary STRATEGIC ACCOUNT MANAGEMENT BUSINESS ALIGNED SERVICES Customer Satisfaction FROM SATISFACTION TO HAPPINESS FROM GLOBAL TO LOCAL Employee Satisfaction Growth CREATING THE TALENT ADVANTAGE BACKING THE REINCARNATE CIO Innovation Delivered 17

18 Work in Progress Dominance of Technology in Business Transformation Emergence of Emerging g Social Consciousness in Buying-New Influencers Gen-Y and Gender-Equality in Talent Pool Innovation, Innovation and Innovation 18

19 HCL will move from Good to do business with to Great to do business with 19