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We have selected HCL technologies as our company of the IT industry for this project and this is the outline of the things that we are planning to cover under the same in accordance with the 30 pointers list that was circulated:

Background of the Industry: Indian IT traces its roots back to the 1960s, when Faqir Chand Kohli widely regarded as the father of Indias software industryhelped get a fledgling IT Services Company with less than $10,000 in yearly revenue off the ground. The wheels were set in motion when TCS won a contract from US-based computer maker Burroughs Corp. to develop a healthcare software package for the company. After Kohli and his team of programmers successfully delivered the project, Burroughs became its first major regular overseas client and TCS never looked back after that. The birth of TCS spawned an entire generation of technology start-ups in India, including Infosys (founded in 1981) followed by HCL and others. Infosys, in particular, set the tone for the rest of the industry to follow, building plush American-style campuses to attract global customers and house and train thousands of fresh-out-of-college engineering graduates. Thus was born the global delivery model where teams of engineers could execute a technology project sitting anywhere in the world Information technology in India is an industry consisting of two major components: IT Services and business process outsourcing (BPO). The sector has increased its contribution to India's GDP from 1.2% in 1998 to 7.5% in 2012. According to NASSCOM, the sector aggregated revenues of US$100 billion in 2012, where export and domestic revenue stood at US$69.1 billion and US$31.7 billion respectively, growing by over 9%

Background of the Company: The company was Shiv nadir and his 5 friends who worked as engineers Delhi Cloth Mills, DCM decided to quit their jobs for their dream. Finally, the founders put together Rs 20 lakh (Rs 2 million) and HCL was born in 1976 with a dream of making computers. HCL Hindustan computers limited. Which later. In 1997, HCL was already a multi-dimensional company spun off HCL Technologies Limited to mark their entry into the global software space. It made up its mind to focus on software development.



IT Industry Insights: Information technology in India is an industry consisting of two major components: IT Services and business process outsourcing (BPO). The sector has increased its contribution to India's GDP from 1.2% in 1998 to 7.5% in 2012. Market Size: Indias total IT industrys (including hardware) share in the global market stands at 7 per cent; in the IT segment the share is 4 per cent while in the ITeS space the share is 2 per cent. The industry is dominated by large integrated players consisting of both Indian and international service providers. During the year, the share of Indian providers went up to 65 per cent-70 per cent due to the emerging trend of monetization of captives. India's IT and BPO sector exports are expected to grow by 12-14 per cent in FY14 to touch US$ 84 billion - US$ 87 billion, according to Nasscom.

IT spending in India is projected to reach US$ 71.5 billion in 2013, an increase of 7.7 per cent as compared to US$ 66.4 billion projected for 2012, as per a report by Gartner. The enterprise software market in India is expected to reach US$ 3.92 billion in 2013, registering a growth of 13.9 per cent over 2012 revenue of US$ 3.45 billion, according to Gartner. The contribution of the IT sector to Indias GDP rose to approximately 8 per cent in FY13.


2. PMI of the industry:

We couldnt find the PMI for IT industry specifically but we found the PMI of the service sector. Adjusted for seasonal influences, the headline HSBC Services Business Activity Index rose from 48.3 in the previous month to 48.8 in February. This was consistent with a slight rate of contraction, and one that was the slowest in the current eight-month period of reduction.

3. Future Plans: The company has plans to target public sector projects to fuel future growth. HCL provides large-scale employment in the UK market. It is the largest Indian employer in Northern Ireland (UK). This has led to improved relations with the UK government. The company aims to leverage its harmonious relationship with the government and target major government projects. The company is also evaluating certain sectors, which would be having high growth in the coming future. Some upcoming segments identified by the company are media, publishing and utilities. It has plans to target these segments with a priority to establish itself as a lead service provider. As the company has a strong position in its conventional market, these plans will enable the company to propel itself for some exponential growth.

4. Capital expense: At the end of FY13, total outstanding capex in the IT/ITES industry stood at more than Rs 1765 bn spread over 437 projects. The property and other equipments combine a net worth of has reduced from 4.81 billion dollars in 2012 to 4.63 billion USD in 2013. Thought to ponder upon: Does that mean the co. is not being ambitious or was just throwing caution to the winds of slow economic growth?

Major players and market shares

The following table shows revenue of Big 5 IT players in India in the year 2012:


HCL recognizes that along with getting new business semiconductor factories need to optimize their manufacturing processes to increase their profits. The realm of software has changed significantly in the recent past. Most of the software is delivered from the cloud, can be accessed from multiple devices, are enabled for global customers, and are targeted towards a larger cross section of audience. Testing is no longer confined to validating the intended product behavior, but extends to ascertain how the product behaves in a given environment (platform / device). The rise of SAP was also handled well by HCL.SAP-on-Demand is HCLs transformational service that provides customers a technology-aligned, certified reference architecture and ready-to-implement SAP solution.

11. Import duties: Import Duties is not applicable as such for the IT industry. Import duty and taxes are due when importing goods into India whether by a private individual or a commercial entity. The valuation method is CIF (Cost, Insurance and Freight), which means that the import duty and taxes payable are calculated on the complete shipping value, which includes the cost of the imported goods, the cost of freight, and the cost of insurance. Duty in particular is calculated on the sum of the CIF value and landing charges (explained below). Some duties are also based on quantity measurements. In addition to duty, imports are subject to other taxes and charges such as landing charges, countervailing duty, CESS, and education CESS. Duty Rates: Duty rates in India can be ad valorem (as a percentage of value) or specific (rupees per unit). Duty rates vary from 0% to 150%, with an average duty rate of

11.9%. Some goods are not subject to duty (e.g. laptops and other electronic products).

12. Export duties, if any: N/A. does not export any manufactured goods.


16. Net foreign exchange earnings (For example, in industries such as gems and jewelry, imports are usually diamond roughs and exports

are finished diamonds. The difference between the two is the export earnings to be considered, not the gross export earnings.) FOREX risk exposure.
2007-2008 During the period under review, the Companys earnings in foreign currency were Rs. 97.79 Crores (Previous Year Rs. 86.91 Crores). The expenditure in foreign currency including imports during the year amounted to Rs. 2139.67 Crores (Previous year Rs. 1955.88 Crores) 2010-2011 During the period under review, the Companys earnings in foreign currency were ` 80.67 Crores (Previous Year ` 103.19 Crores). The expenditure in foreign currency including imports during the year amounted to ` 1983.63 Crores (Previous year ` 2307.44 Crores). As on June 30, 2011, the foreign currency exposure that is not hedged by a derivative instrument or otherwise is ` 351.10 Crores (2010 - ` 416.20 Crores) 2011-2012 The Company uses foreign exchange forward contracts and options to mitigate the risk of movements in foreign exchange rates associated with payables and forecasted transactions in US Dollars. However, steep depreciation in Indian rupee against US Dollar resulted in Foreign exchange loss of ` 66 crores during the year as compared to a gain of ` 10 crores previous year. During the period under review, the Company's earnings in foreign currency were ` 71.15 Crores (Previous Year ` 80.67 Crores). The expenditure in foreign currency including imports during the year amounted to ` 1627.13 Crores (Previous year ` 1983.63 Crores)


The company uses foreign exchange forward contracts and options to mitigate the risk of movements in foreign exchange rates associated with payables and forecasted transactions in US Dollars. During the year, Indian Rupee was volatile against US Dollar and depreciated by 7% (opening rate was INR 55.62/ USD and closing rate was INR 59.40/USD). The foreign exchange loss was ` 46 crores during the year. Pursuant to notification u/s 211(3C) of the Companies Act , 1956 the Company has deferred exchange loss of ` 18 crores arising on translation of foreign currency items having a term of 12 months or more which will be amortised over the period of the item. During the period under review, the Companys Standalone earnings in foreign currency were Rs. 53.32 Crores (Previous Year Rs. 71.15 Crores). The Standalone expenditure in foreign currency including imports during the year amounted to Rs. 1461.24 Crores (Previous year Rs. 1627.63 Crores). As on June 30, 2013, the foreign currency exposure that is not hedged by a derivative instrument or otherwise in respect of Trade Payables are ` 457.76 Crores (2012 - ` 209.29 Crores) and in respect of Trade Receivables are ` 36.70 Crores (2012- ` 38.80 Crores). Mark-to-Market losses provided for as on June 30, 2013 of ` 0.44 Crores (2012 - ` 0.27 Crores).The unaccrued forward exchange cover as on June 30, 2013 of ` 8.31 Crores (2012 - ` 7.06 Crores) has been included under Other current assets and Other non current assets as Unamortized Premium on Forwards Contracts. Pursuant to notification u/s 211(3C) of the Companies Act, 1956 issued by the Ministry of Corporate Affairs on December 29, 2011, the Company has opted to accumulate the exchange difference arising on translation of foreign currency items having a term of 12 months or more and amortize such exchange difference over the period of the item. Accordingly, a loss of ` 17.96 Crores (2012 - ` 11.47 Crores) stands deferred as at June 30, 2013

17. Union minister in charge:

Kapil sibal is the IT minister of India who hasnt really had a hude impact on the IT industry but On a brighter note In the recent article published by business standards: Indias Talent plus Information Technology is equal to India Tomorrow, he said drawing spontaneous applause from the audience. There is a need to bring down the digital divide in the country, he added. We cant have two Indias, one racing ahead and another moving on reverse gear. This will add to our problems. This is Modis third interaction with the technology industry in the past couple of months. Recently, he had held a closed-door meeting with a select group of technology chiefs who apprised him of the major challenges facing the sector. Modi had asked them to prepare a white-paper with all their concerns, which could be considered for the partys election manifesto. So, the coming elections can play a massive role in the future of IT industry and thus HCL technologies.

18. Government policy. As also, the treatment the industry received in the last Union budget

Satisfy the spirit of the law and not just the letter of the law. Corporate Governance standards should go beyond the law. Be transparent and maintain a high degree of disclosures levels. When in doubt, disclose it. Make a clear distinction between personal convenience and corporate resources.

Communicate externally, in a truthful manner, about how the Company is run internally. Have a simple and transparent corporate structure driven solely by business needs. Comply with the laws in all the countries in which we operate. Management is the trustee of the shareholders capital and not the owner.

Company have to pay a higher surcharge of 10 per cent as against 5 per cent at present.

The overall IT budgets are going to be flat or are marginally negative. The real market is moving towards churning from the existing global vendors into more innovative vendors like HCL. The growth is because of this reason rather than the overall increase in the budgets They have continued to remain consistent with our hedging policy, of hedging about 40% of our inflows. They have taken certain long-term hedges because the long-term hedges given the fact that they have sign long-term contracts, so their hedging position is right now at about $1 billion.

21. Major problems afflicting the industry: e.g., raw material shortages, global competition, etc.
India has branded itself as one of the favorite destination for application development outsourcing, owing to a great combination of lower cost and high quality IT. In this article, we have highlighted some of the challenges that have emerged for the Indian IT companies as they become larger players on the global stage.

Legal laws and norms

The first major problem that the Indian IT firms have started to face in recent times is that they are now subject to different legal laws and norms. Each country has its own set of rules. For example not recruiting older employees was fine in India. But they can no longer reject people on the grounds of their age. A case in point is the recent lawsuit filed against Infosys, wherein an individual alleged that the company declined employment to him just on the grounds that he was old. While Infosys has reiterated that they do not discriminate on age, however, they were unable to give a plausible reason for rejection. There are many more such cases that Indian IT companies now face as they expand global operations.

Anti-outsourcing Indian IT industry has thrived on the work outsourced to them particularly by the developed nations. However, as the developed world faces the brunt of the global crisis, they have started raising their voices against the migration of jobs to India. In recent times, many have imposed stricter visa norms and legal fees. For example, US visa rejection rates for Indian techies have doubled from around 4% to over 8% over the past nine months. As a result, sending IT personnel to onsite locations has become increasingly difficult and expensive for the companies. This would start to have an impact on their margins in times to come.


Expensive & Unskilled Manpower IT industries have become expensive due to rapid increase in the cost for the manpower. There has been regular increase of salaries by 10-20% every year. This increase in the salaries without correspondent increase in output levels per person is eating into the profit levels of the Indian IT companies. In the earlier times India provided less expensive, highly skilled manpower; currently it has run out of that skilled manpower and whatever manpower is available is either not skilled enough or highly expensive.


Recruitment Also as Indian IT firms go global they need to develop the optimum mix of employees. A big dilemma that they face is to get the balance correct in terms of recruiting from the local markets or to assign the jobs to Indian counterparts. The decision is critical as the wrong mix could have an adverse impact on employee morale and productivity. It also has a serious impact on the company's operating costs. Companies like Infosys and TCS have been opening offices in countries outside of India. As a result this problem becomes even more magnified for them. Companies like Wipro who rely more on inorganic growth through acquisitions, also face the same problem.


Security The failure to address security problems today is by and large caused by organizational issues, not technological limitation. The major organizational obstacles to an effective security program are- when many companies arent even aware of the attack, whether internal or external, the majority of companies with massive security suffer from head in the sand problem. The other obstacle arises when though you have a good security team that knows what the issues are, more often than not there are major organizational obstacles to actually solving the problem. Political battles, turf wars etc, destroy the effectiveness of more security programs than the lack of any product or technology. To be an effective part to have a more secured technology, one should have Knowledge-- of what needs to be done; Empowerment---to make the necessary changes; and Talent- to execute it properly.

22. Financial analysis: industry aggregates of key ratios such as return on net worth, capital formation, sales growth, profit growth, cash flow, cost of funds, operating income/operating expenses ratio, operating income to other income ratio, among other important ratios.

For the financial analysis, we have used key financial ratios of HCL Technologies Limited to understand the trends in the IT industry. For FY 2013, the HCL Technologies Limited company's total income from operations grew by 22.81 % to Rs. 25,581.06 Cr. as against Rs. 20,830.55 Cr. in FY 2012 and for the same period; net profit went up by 66.76 % to Rs. 4,044.58 Cr. as against Rs. 2,427.08 Cr. in FY 2012.

The Equity Research Report presented below is based on a Fundamental Analysis of HCL Technologies.

Valuation Analysis:

Particulars FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Total Income from Operations (Rs. Cr.) 10,229.41 12,136.29 15,730.43 20,830.55 25,581.06 Growth (%) 18.64% 29.61% 32.42% 22.81% PAT (Rs. Cr.) 1,319.45 1,259.00 1,646.63 2,427.08 4,044.58 Growth (%) -4.58% 30.79% 47.40% 66.76% Earnings Per Share Basic (Rs. ) 19.72 18.69 24.09 35.06 58.15 Earning Per Share Diluted (Rs. ) 19.49 18.27 23.61 34.43 57.2 Price to Earnings 9.53 19.97 20.9 13.83 13.57

Dividend History Year FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Rate of Dividend (of face Closing value) Rs Price 450% 9 161.75 350% 7 329.6 200% 4 417.6 375% 7.5 412.35 600% 12 603.8 600% 12 1,197.55

The Company has maintained an average dividend yield of 1.58 % over the last 5 financial years.

Liquidity and Credit Analysis FY 2013 1.60 FY 2012 1.33 0.17 25.27 FY 2011 1.69 0.18 13.72 FY 2010 2.19 0.30 12.37 FY 2009 1.64 0.16 43.42

Column1 Current Ratio(x)

Total Debt/Equity(x) 0.06 Interest Cover(x) 59.22

Current Ratio Higher current ratio implies healthier short term liquidity comfort level. A current ratio below 1 indicates that the company may not be able to meet its obligations in the short run. However, it is not always a matter of worry if this ratio temporarily falls below 1 as many times companies squeeze out short term cash sources to achieve a capital intensive plan with a longer term outlook. HCLs average current ratio over the last 5 financial years indicates that the Company has not been facing liquidity problems and is well placed to meet its short term obligations. Long Term Debt to Equity Ratio Companies operating with high debt to equity on their balance sheets are vulnerable to economic cycles. In times of slowdown in economy, companies with high levels of debt find it increasingly difficult to service the interest on their borrowings as profit margins decline. We believe that long term debt to equity

ratio higher than 0.6 - 0.8 could affect the business of a company and its results of operations. HCLs average long term debt to equity ratio over the last 5 financial years indicates that the Company is operating with very low level of debt and is well placed to meet its debt obligations. Interest Coverage ratio Interest coverage ratio indicates the comfort with which the company may be able to service the interest expense (i.e. finance charges) on its outstanding debt. Higher interest coverage ratio indicates that the company can easily meet the interest expense pertaining to its debt obligations. In our view, interest coverage ratio of below 1.5 should raise doubts about the companys ability to meet the expenses on its borrowings. Interest coverage ratio below 1 indicates that the company is just not generating enough to service its debt obligations. HCLs average interest coverage ratio over the last 5 financial years indicates that the Company has been generating enough for the shareholders after servicing its debt obligations.

Efficiency Analysis Particulars ROCE ROE / RONW FY 2009 23.01 26.7 FY 2010 FY 2011 21.57 26.37 20.02 21.51 FY 2012 33.85 24.63 FY 2013 40.74 30.69

Return on Capital Employed (ROCE) measures a companys profitability from its overall operations by calculating the return generated on the total capital invested in the business (i.e. equity + debt). Return on Equity (ROE) or Return on Net Worth (RONW) measures the amount of profit which the company generates on money invested by the equity shareholders. In short, ROE draws attention to

the return generated by the shareholders on their investment in the business. Together these ratios can be used in comparing the profitability of the company with other companies in the same industry.

Profitability Analysis Particulars Operating Profit Margin Ratio Net Profit Margin Ratio FY 2009 FY 2010 17.91 12.9 16.02 10.37 FY 2011 15.61 10.47 FY 2012 17.74 11.65 FY 2013 22.3 15.81

Operating profit margin is a measurement of the proportion of a companys revenue that is left over after paying for production costs such as raw materials, salaries and administrative costs. Net profit margin is arrived at by deducting nonoperating expenses such as depreciation, finance costs and taxes out of operating profit and shows what is left for the shareholders as a percentage of net sales. Together these ratios help in understanding the cost and profit structure of the firm.

23. Role of Business Process Outsourcing in the Industry:

INDUSTRY: BPO is distinct from information technology (IT) outsourcing, which focuses on hiring a third-party company or service provider to do IT-related activities, such as application management and application development, data center operations, or

testing and quality assurance. Many of these BPO efforts involve offshoring -hiring a company based in another country -- to do the work. India is a popular location for BPO activities. Frequently, BPO is also referred to as ITES -information technology-enabled services. Since most business processes include some form of automation, IT "enables" these services to be performed. The table shows global BPO market by industry.

By 2002 all major Indian software companies were into BPO, including Infosys (Progeon), Inforlinx, HCL, Satyam (Nipuna) and Patni. By 2003 Daksh was bought out by IBM, and later in 2006 MphasiS was acquired by EDS. Even international 3rd party BPO players like Convergys and Sitel had set up shop in India, swelling the BPO movement to India. Then service arms of organizations like Accenture, IBM, Hewlett Packard, Dell also set up shop in India. At about Rs 84,800 crore ($16 billion) in export revenue and an employment base of some 9 lakh professionals, India's BPO industry is still much smaller than the IT services sector.

HCL Technologies Ltd - Business Services (BSERV) is one of the leading players in the BPO segments with strong domain knowledge and quality driven processes. They expertise in Industry Specific Services, FAO-Finance & Accounts Outsourcing, CRM-Customer Relationship Management, HRO-Human Resource

Outsourcing, SCM-Supply Chain Management, KPO-Knowledge Process Outsourcing and more. Revenue from BPO services fetch about 4.4% of HCL Technologies' total sales of $4.4 billion.

24. Major international competition from China or other countries

The Economic Survey 2012-13 acknowledged that the $100 billion Indian information technology and business process management (IT-BPM) is facing serious competition from many of the developing countries. In the last five years India has lost about 10% market share to the rest of the world in the business process outsourcing (also known as BPM) space, most of which is in the voice contract segment. In the BPO sector, countries such as the Philippines, Malaysia and China in the Asian continent; Egypt and Morocco in North Africa; Brazil, Mexico, Chile and Columbia in Latin America; and Poland and Ireland in Europe are emerging as attractive destinations for voice contracts, posing a significant threat to Indian firms. Though the Philippines, the second largest destination for outsourcing, is currently facing the challenge of appreciating currency, it is a serious competitor having developed both the hardware and software segments of IT, said the survey. It also mentions that though China faces challenges, such as language proficiency, the country is spending large amounts in mission mode to increase English proficiency, and thus may eventually emerge as a threat to India. The global slowdown has impacted the revenues of the IT-BPM sector, the growth of which decelerated from 15% in 2011-12 to an estimated 8.4% reaching $ 95.2 billion in 2012-13 as per Nasscom.

The deceleration in growth of the dominant export sector (80% share) was from 16.5% in 2011-12 to 10.2% in 2012-13. In Indian rupee terms domestic revenues have grown at 14.1% in 2012-13 compared to 16.6% in 2011-12. Nasscom estimate of growth for 2013-14 are 13-15% for total IT-BPM revenue, 12-14% for exports and 13-15% for domestic sector.

To tackle with this, India should move up the value chain in software services. Equally important is the need to focus on the large domestic sector where there is a huge opportunity which, if tapped could also lead to lower costs due to scale economies. To address the rising wages in the urban BPO space, there is a need to move more towards rural areas, for which skill development, and English language training with American and different European accents is necessary.

25. Contribution of the industry to Indias GDP:

A comparison of the services performance of the top 15 countries for the 11 year period from 2001 to 2011 shows that the increase in share of services in GDP is the highest for India with 8.1 percentage points. These 15 top countries include major developed countries along with Brazil, Russia, India and China. While Chinas highest services compound annual growth rate (CAGR) stood at 11.1%, Indias very high CAGR of 9.2% was second highest and also accompanied by highest change in its share. This is a reflection of the fact that Indias growth has been powered mainly by the services sector. Other services had a share of 7.9% in 2010-11. It grew at 6.5% in 2011-12.

26. Major international strategic alliances/FDI/manufacturing capacities set up outside India

The international strategic alliances of HCL Tech are governed and measured at the corporate level with a focus on joint revenue, value proposition, and alignment with our business goals. Major ones are listed below. Microsoft: Spanning 25 years, the Microsoft-HCL relationship is the oldest and most strategic alliance. It focuses on delivering world class business solutions on leading Microsoft Technologies. CISCO: HCL has a unique decade long, strong 360 degree relationship with Cisco which positions HCL to offer value driven IT Infrastructure lifecycle services around Prepare, Plan, Deploy, Implement, Operate and Optimize (PPDIOO). EMC: The EMC and HCL Technologies alliance leverages EMCs best-in-class information infrastructure technology and solutions with HCLs leadingedge information technology consulting and services to solve customers business and IT challenges. SAP: As an SAP partner for over 16 years, HCL has an unrivalled partnership with SAP. HCL creates value by combining extensive product knowledge and deep industry experience with practical, results focused SAP services. HP: Along with HPs partnership HCL BPO is the first company in the country to deploy a comprehensive ITSM based solution.

27. Which is the dominant Indian state for this industry The IT industry contributed 7.5 % of the GDP in 2012 and continues to grow. Although the major cities that account for the 90% exports of the sector are Bangalore, Chennai, Kolkata, Pune, Trivandrum and Hyderabad. Bangalore is known as the Silicon City of the country predominantly constituting about 77% to the total Industry revenue.

HCL has its headquarters at Noida UP.

30. CEO and Board members information: Founder & Chairman - Shiv Nadar, Founder and Chairman of HCL, was born in 1945. He completed his Engineering in Electrical and Electronics from PSG College of Technology, Coimbatore. - HCL, under Nadars leadership, revolutionized Indian technology and product innovation with many world firsts to its credit the first 8-bit microprocessor-based computer in 1978, the first Relational Database Management System in 1983 before some of its global peers, client- server architecture in 1984, worlds first fine-grained multi-processor UNIX installation in 1989, among others Awards & Accolades Padma Bhushan in 2008 for contribution to IT industry In 2007, Madras University awarded him honorary doctorate degree (D Sc) for his contributions in promoting software technology. Recognized as E&Y Entrepreneur of the Year 2007 (Services). CNBC Business Excellence Award in 2005.

In 2006, he received an Honorary Fellowship of All India Management Association-AIMA.

We have collected similar information about the CEO and the other board members of the firm

Some issues experienced by company recently:

In 2013, company procrastinated on boarding of recruits which lead to protests, both online and in evocative location Vineet Nayar stepped down as a CEO & to continue as vice-chairman and joint managing director of HCL Technologies till July 2013, and vicechairman thereafter.

Research and Development:

Indian IT sector only contributes 10% of the Rnd happening in india. Globally it is the leader.HCL follows the trend of most IT companies in India by not spending much in RnD but they are the best amongst the lot. These MNC captive centres in India, combined with Indian providers of engineering R&D outsourcing, account for about 23% of the overall global engineering R&D outsourcing market. This makes India by far the largest provider of such outsourcing services. Among Indian providers, HCL, Wipro and TCS are clear leaders. HCL, which is the only one that reports the revenues of this segment separately, had over $700 million of its $6 billion revenue in 2012-13 coming from this segment. Wipro's and TCS's revenues from this segment are said to be in a similar range.

o HCL as an R&D Engineering partner for Microsoft :

o HCL is the largest Test Vendor and the only Digital Efficiency Program partner for Microsoft. o HCL has signed 4 global service center agreements with Microsoft in the product development process across the areas of application development, product engineering, test, support, and program management. HCL is working with Microsoft as a premier engineering partner across their groups such as the Online ServicesDivision, Server & Tools Business, Microsoft Office Division, Interactive and Entertainment Division and Digital Efficiency Program. Microsoft recently acknowledged HCLs excellent VOF operations by awarding it the Top5 Vendors Award FY12.




CONCLUSION: Having studied the HCL technologies from every possible angle we can safely conclude that the IT industry is on a rise. With not only the big players taking big strides but also a lot of small players stepping up. If the IT companies can invest a little more on the RnD (global avg: 30%,Indian avg: 10%) we can very easily have a world class innovative global brand which can push the economy in the right direction. It will have to be a combined effort of both government and the companies.

IT industry managed to stay afloat during the economic turmoil because of its export driven nature and is expected to continue doing so. HCL is expected to grow at a consistent rate and would continue to being bullish amongst the big guns.