HCL's Global Growth Through Strategic Acquisitions

Vinay Pratap Singh, 2008PIB093
INTRODUCTION

INTRODUCTION:
This dissertation report is basically concerned with the international marketing

strategies of HCL the leading IT Company in India. Report will explain the international
marketing strategies of HCL and will state that how HCL is going global by its inorganic
growth. I will try explaining the strategies adopted by the Chairman & CEO (Ajai
Chawdhry) of the company and the conventional strategies which are adopted by the
most of the companies engaged in providing IT service when they enter in the
international market. Here I will explain that how much this company earns from the
different geographical areas of the world and what may be the risks to the company in
international market and what are the competitive advantages to the company in the
international market.
All data in the preparation of this report has been collected from the secondary sources
some data has been collected from the books, from the internet and from the annual
report of the company as well as from the company website. In is starting the report will
explain that what is international marketing and its concept, then the report will explain
that what is the motive behind the selection of this dissertation topic and what is its
relevance in the modern scenario.
The middle part of the report contributes to the most important part of the report and
contributes to the maximum part of this report which is based on the literature review.
This part explains that what is the current situation of IT industry in India what research
has been done in the area of information technology so far. Then in the end there are
some suggestions for the further studies that can be taken place in the area and the
suggestions for the company to which company can adopt. Some important objectives
of the report are:
 To know the international marketing strategy of HCL.
 To know the motive behind internationalization strategy.

 To know about the revenue generation of HCL from different geographical
regions in the World.
 To know about the risk related to company and industry.
 To know the competitive strength of HCL.
 To know the Information technology of India.

A CONSEPTUAL FRAME WORK

INTERNATIONAL MARKETING (A conceptual framework):
Many readers of this textbook will have already followed a programme of study in
marketing but, before explaining what we mean by international marketing, let us reflect
for a few moments on our understanding of what is meant by marketing itself. The
Chartered Institute of Marketing defines marketing as the ‘Management process
responsible for identifying, anticipating and satisfying customer requirements profitably’.
Thus marketing involves:
 focusing on the needs and wants of customers
 identifying the best method of satisfying those needs and wants
 orienting the company towards the process of providing that satisfaction
 Meeting organizational objectives. In this way, it is argued, the company or
organization best prepares itself to
Achieve competitive advantage in the marketplace. It then needs to work to maintain
this advantage by manipulating the controllable functions of marketing within the largely
uncontrollable marketing environment made up of SLEPT factors: i.e. Social, Legal,
Economic, Political and Technological.
How does the process of international marketing differ? Within the international
marketing process the key elements of this framework still apply. The conceptual
framework is not going to change to any marked degree when a company moves from a
domestic to an international market; however, there are two main differences. First,
there are different levels at which international marketing can be approached and,
second, the uncontrollable elements of the marketing environment are more complex
and multidimensional given the multiplicity of markets that constitute the global
marketplace. This means managers have to acquire
new skills and abilities to add to the tools and techniques they have developed in
marketing to domestic markets.

International Marketing Defined:
At its simplest level, international marketing involves the firm in making one or more
marketing mix decisions across national boundaries. At its most complexes, it involves
the firm in establishing manufacturing/processing facilities around the world and
coordinating marketing strategies across the globe. At one extreme there are firms that
opt for ‘international marketing’ simply by signing a distribution agreement with a foreign
agent who then takes on the responsibility for pricing, promotion, distribution and market
development. At the other extreme, there are huge global companies such as Ford with
an integrated network of manufacturing plants worldwide and who operate in some 150
country markets. Thus, at its most complexes, international marketing becomes a
process of managing on a global scale. These different levels of marketing can be
expressed in the following terms:
 Domestic marketing, which involves the company manipulating a series of
controllable variables such as price, advertising, distribution and the
product/service attributes in a largely uncontrollable external environment that is
made up of different economic structures, competitors, cultural values and legal
infrastructure within specific political or geographic country boundaries.
 International marketing, which involves operating across a number of foreign
country markets in which not only do the uncontrollable variables differ
significantly between one market and another, but the controllable factors in the
form of cost and price structures, opportunities for advertising and distributive
infrastructure are also likely to differ significantly. It is these sorts of differences
that lead to the complexities of international marketing.
 Global marketing management, which is a larger and more complex
International operation. Here a company coordinates, integrates and controls a whole
series of marketing programmes into a substantial global effort. Here the primary
objective of the company is to achieve a degree of synergy in the overall operation so
that by taking advantage of different exchange rates, tax rates, labour rates, skill levels

and market opportunities, the organization as a whole will be greater than the sum of its
parts. This type of strategy calls for managers who are capable of operating as
international marketing managers in the truest sense, a task which is far broader and
more complex than that of operating either in a specific foreign country or in the
domestic market. In discussing this, Sarathy et al. (2006) comment that ‘the
international marketing manager has a dual responsibility; foreign marketing (marketing
within foreign countries) and global marketing (co-ordinating marketing in multiple
markets in the face of global competition)’.
Thus, how international marketing is defined and interpreted depends on
the level of involvement of the company in the international marketplace.
International marketing could therefore be:
 Export marketing, in which case the firm markets its goods and/or services
across national/political boundaries.
 International marketing, where the marketing activities of an organisation

include activities, interests or operations in more than one country and where
there is some kind of influence or control of marketing activities from outside the
country in which the goods or services will actually be sold. Sometimes markets
are typically perceived to be independent and a profit centre in their own right, in
which case the term multinational or multi-domestic marketing is often used.
 Global marketing, in which the whole organization focuses on the selection and
exploitation of global marketing opportunities and marshals resources around the
globe with the objective of achieving a global competitive advantage. The first of
these definitions describes relatively straightforward exporting activities,
numerous examples of which exist. However, the subsequent definitions are
more complex and more formal and indicate not only a revised attitude to
marketing but also a very different underlying philosophy. Here the world is seen
as a market segmented by social, legal, economic, political and technological
(SLEPT) groupings. In this textbook we will incorporate the international

marketing issues faced by firms, be they involved in export, international or
global marketing. For all these levels the key to successful international
marketing is being able to identify and understand the complexities of each of
these SLEPT dimensions of the international environment and how they impact
on a firm’s marketing strategies across their international markets. As in domestic
marketing, the successful marketing company will be the one that is best able to
manipulate the controllable tools of the marketing mix within the uncontrollable
environment. It follows that the key problem faced by the international marketing
manager is that of coming to terms with the details and complexities of the
international environment.

IMPORTANCE OF INTERNATIONAL MARKTING:
Last year’s international trade in merchandise exceeded US$10.5 trillion and
world trade in services is estimated at around US$2.4 trillion. Whilst most of us cannot
visualize such huge amounts, it does serve to give some indication of the scale of
international trade today. This global marketplace consists of a population of 6.6 billion
people which is expected to reach 10 billion by 2050 according to the latest projections
prepared by the United Nations. Global wealth is increasing and this is reflected in
higher demand. Increasing affluence and commercial dynamism has seen nations
across Asia, Central and Eastern Europe emerge as high growth economies. Increasing
affluence and demand simply means that consumers will actively seek choice, with the
result that globally competition is intensifying as companies compete to win the battle
for disposable income. Population growth and increased affluence together have helped
create a ‘global youth culture’ – teenagers now account for 30 per cent of the
population globally. In many countries, more than half the population is pre-adult,
creating one of the world’s biggest single markets, the youth market. Everywhere
adolescents project worldwide cultural icons, Nike, Coke, Gap and Sony Walkman, as
well as Sega, Nintendo and the Sony Play station. When ‘virtual reality’ is
commonplace, the one-world youth culture market will exceed all others as a premier
global market segment. Parochial, local and ethnic growth products may face difficult
times.
Older consumers are also increasingly non-national in their identity, if not in their
personal identity then from the perspective of the consumable fabric of their lives. They
drive international cars, take foreign holidays, watch international programmes on
television, use international hardware and software. On the supply side, multinational
and global corporations are increasing in size and embracing more global power. The
top 500 companies in the world now account for 70 per cent of world trade and 80 per
cent of international investment. Total sales of multinationals are now in excess of world
trade, which gives them a combined gross product of more than some national
economies. To strategically position themselves for global competitiveness, companies
are consolidating through mergers, acquisitions and alliances to reach the scale
considered necessary to compete in the global arena.

At the same time, there is a trend towards global standardisation, as companies strive
for world standards for efficiency and productivity. In Europe last year mergers and
acquisitions were worth US$ 1.59 trillion, in the USA $1.54 trillion. The Indian company
Tata took over Corus making them the world’s largest steel producer, overtaking Mittal
(Dutch) who in the same year took over Aecelor of Luxembourg. In Germany e.ON bid
for Endesa of Spain.
GSK have a number of global alliances in the pharmaceutical market, creating the
world’s largest research-based pharmaceutical company. Such trends can also be seen
in the service sector. In the US, Morgan Stanley and Dean Witter merged to offer global
investment as well as global private banking and credit card services. There has also
been an increase in the number of joint ventures and international strategic alliances to
compete in mature markets. Xerox entered into a joint venture with Fuji to consolidate
their global position and the Siemens and Fujitsu joint venture is now the only computer
hardware company in Europe following the global consolidation of that sector. The
global marketplace is no longer the summation of a large number of independent
country markets but much more multilateral and interdependent, economically, culturally
and technically. Information moves anywhere in the world at the speed of light, the ease
of transmission being facilitated by the convergence of long distance telecoms, cuts in
the cost of electronic processing and the exponential growth in Internet access. The
combination of all these forces has meant that all companies need to
Develop a marketing orientation which is international in nature and that companies
need managers who have the skills to analyse, plan and implement strategies across
the globe. It is for these reasons that international marketing has become such a critical
area of study for managers and an important component of the marketing syllabus of
business faculties in universities. So perhaps now we should turn our attention to
examining exactly what we mean by international marketing .

SIGNIFICANCE AND RELEVANCE
MAIN MOTIVE FOR INTERNATIONALIZATION STRATEGIES

In modern scenario each and every activity is going around the globe and the national
foundries are now continuously melting though slowly but this is sure that one day
whole world will be consider is a single market where there will be no tariff restrictions
for the different counties’ products so one should understand that what the companies
are doing in the international market and what are the strategies companies adopts
when the enters in the international market. One should be aware about the different
types of risks a company may face in the international market how these risks can be
minimized.

INDIAN IT INDUSTRY AND
HCL COMPANY
Policies and Regulations of Indian IT Industry
The policies and regulations of Indian information technology industry are the basic
guidelines that have been set up by the Department of Information Technology of the
Ministry of Communications and Information Technology of the Government of India.
There are a number of guidelines on various aspects of the Indian IT industry that are
supposed to be followed by the information technology industry of India. They may be
enumerated as below:
 Preparation for project proposals

 State Data Centre
 National Electronics or Information Technology Hardware Manufacturing Policies
 Electronics and Information Technology Industry
 Implementation of Common Services Centres Scheme in States
 Establishment of State Wide Area Network
 Capacity Building and Institutional Framework for e-governance under NeGP
 IN Internet Domain Registration
 Submitting Proposals for DIT support needed to host Symposiums, Conferences,
Workshops and Seminars in the fields of electronics, and Information and
Communication Technology
 IN Internet Domain Name-Policy Framework and Implementation The policy and
regulations on State Data Centre are made up of a number of policies and regulations
on a number of issues. There are a few regulations on the State Data Centre along with
annexure on issues like manpower requirements, physical requirements, standard
requirements and best practices on security. The Industrial Promotion Division of the

Department of Information Technology are responsible for formulating the rules and
regulations for the Electronics and Information Technology Industry.
The organization deals with the following issues - Deemed exports, Industrial approval
policies, Export promotion schemes, Foreign investment policies, Export promotion
capital goods(EPCG)scheme, Fiscal policies, Duty exemption and remission schemes
and Foreign trade policy.
As far as the policies on .IN Internet Domain Registration are concerned they are
divided into two separate and major categories. One set of policies and regulations is
on .IN Internet domain name and the other set is on the National Internet Exchange of
India. The draft paper on the national electronics and information technology hardware
manufacturing policies contains a number of issues that are important in the context of
the overall information technology scenario of the country. They may be mentioned as
below:
 Procurement and rewarehousing certificates

 Vision, strategies and aims for assisting electronics and information technology
hardware manufacturing
 Inviting large EMS companies to set up/augment Indian operations
 Tariff policy
 Developing semiconductor industry
 EXIM policy issues
 looking at the international market
 Hardware manufacturing cluster parks (HMCP)
 HRD in VLSI design and embedded software
 fostering the sourcing of locally manufactured products
 improving labour laws
 upgrading the general infrastructure
 Patenting
 reducing the time of transaction
 Certification of quality
 Assisting research and development
 removing mandatory customs bonding for electronics and IT Units

 Selling Indian products
 Rate of depreciation
 Fostering relocation of manufacturing plants to India
Size of India’s IT Industry
The size of India's IT industry has grown significantly over the years. The size of this
sunshine industry of India grew from 150 million US Dollars to 50 billion US Dollars
between 1990-1991 and 2006-2007. The growth of the IT industry has been very high in
the last few years. The size of the Information Technology industry of India was 5.7
billion US Dollars in 1999-2000. After the turn of the century the industry experienced
exponential growth to reach the 50 billion mark by 2006-2007.
The size of the IT industry grew consistently during the period - 1995-2000
1995-1996 - 1224 million US Dollars

2007-2008 - 87 billion US
Dollars
According to the NASSCOM- McKinsey report on the IT industry of India, the projected
revenue of the IT industry of India for the year 2008 is 87 billion US Dollars.

HCL COMPANY HISTORY
HCL Infosystems Ltd is one of the pioneers in the Indian IT market , with its origins in
1976. For over quarter of a century, we have developed and implemented solutions for
multiple market segments, across a range of technologies in India. We have been in the
forefront in introducing new technologies and solutions. The highlights of the HCL saga
are summarized below:
1986 :
The company was established on 17 April. The object of the company is manufacturing
of and leading in complete range of Mini Computers Micro processor based systems,
Electronics Instruments, Micrographic and reprographic equipment and manufacturing
and marketing of electronic EPABX systems and electronics Teleprinters.
1989:
The company entered into an agreement with Hewlett Packard of US for the sale and
leaving of the Super Mini and Mainframe computers to be manufactured by Hewlett in
India.
1996:
The performance was adversely affected due to rise in dollar exchange rate, tight
liquidity position in the market, political uncertainty coupled with deferment of capital
expenditure by the Government Departments.
1997:
The Company commissioned its second state-of-the-art manufacturing facility at

Sedarpet near Pondicherry. The Company has the largest network of spare-stocking
locations, supported by Test and Repair Centres which reduces the inventory level and
increases the spares availability at any time. To meet critical requirements within 4-5
hours, the company has tied-up with Indian Airlines to deliver spares in major metro
cities.
1998:
The Company tied-up with Intel Corporation for Server technology, resulting in the
introduction of the Infiniti Global Line range of PC Servers which incorporate building
blocks from Intel and are integrated and tested extensively for Indian condition.

1999:
The Board of Directors unanimously appointed Mr. Ajai Chowdhry as Chairman and
Chief Executive Officer with effect from 5th November.
2000:
HCL has launched a new range of PCs (Ultima and Elite models) under its Beanstalk
range of PC's at its Pondicherry plant. The Company entered into an agreement with
US-based In focus for distribution and technological support of the latter's data and
video projection products in the country. HCL Infosystems Ltd. has launched the Nokia
professional Centre (NPC) in Chennai as part of the expansion program to open Nokia
centers in India which will enable customers to choose the right model and accessories
suiting their life style. HCL Infinet, the Internet start-up of HCL Infosystems, and media
group, Asian Age, have set up a joint venture called Asian Age Infinet. HCL Infosystems
Ltd has launched in India the Swedish major Ericsson's Generation X Business
communication too, "Next Call Centre". HCL Infinet Ltd., the Internet services subsidiary
of HCL Infosystems, has tied up with UBS Publishers' Distributors Ltd., one of the
largest distributors of books in the country, to sell books online through its soon-to-be-
launched portal. - HCL Infosystems has entered into a tie-up with Broad Vision for
providing personalized e-business applications to is clients.
2001:
HCL Infosystems and Intel have jointly launched an e-business solutions program,
targeting new market opportunities in segments such as Internet service providers,
application service providers, banking and finance. HCL InfiNet Ld., the Internet
services subsidiary of HCL Infosystems, has launched an authenticated payment
gateway for its portal, www.hclinfinet.com, in association with Citibank to enable
customers to carry out secure transactions online including buying Internet access.
HCL Infosystems is setting up a managed off-shore development centre at its NOKIA
software development facility for Stretch Systems -- the Singapore-based IT systems
and technology developer.
2002:
HCL Infosystem joins hands with Sun Microsystems India to provide end-to-end
solutions to business. HCL Infosystem says it is the No.1 PC Co in India in 2001.
2003:
HCL Infosystem receives the project to completely automate the Value Added Services
(VAT) of Andhra Pradesh.

2004:
HCL Infosystem forays into digital entertainment sector HCL touches one lakh milestone
in desktop sales HCL Infosystem ties up with Union Bank
2005:
HCL Launches Micro Balanced Technology Extended (BTX) Form Factor for desktops
in India on February 10, 2005. HCL Infosystem unveils PC for Rs.12, 99.

INTRODUCTION OF HCL
Evolution in India a reality. Shiv nadir and five of his colleagues got together and 1975
set up a new company MICROCOMP to start with; they started to capitalize on their
marketing skills. Micro comp marketed calculators and with in a few month of starting
operation, the company was out selling its major competitors. On 11th August, 1976
HINDUSTAN COMPUTERS LIMITED was incorporated as joint venture between the
entrepreneurs and UPSCE, wit an initial equity of Rs.1.83 Lakhs. Despite HCL’s rapid
success, the company faced many challenges in growing and expanding its business.
Before long, the company was able to secure a better financial position for itself and
opened two additional offices in Calcutta and Mumbai .After 8 years, HCL become the
largest computer system and services company in India.

HCL COMPANY PROFILE
Born in 1976, HCL has a 3 decade rich history of inventions and innovations. In 1978,
HCL developed the first indigenous micro-computer at the same time as Apple and 3
years before IBM's PC. During this period, India was a black box to the world and the
world was a black box to India. This micro-computer virtually gave birth to the Indian
computer industry. The 80's saw HCL developing know-how in many other
technologies. HCL's in-depth knowledge of Unix led to the development of a fine
grained multi-processor Unix in 1988, three years ahead of Sun and HP.HCL's R&D
was spun off as HCL Technologies in 1997 to mark their advent into the software
services arena. During the last eight years, HCL has strengthened its processes and
applied its know-how, developed over 28 years into multiple practices - semi-conductor,
operating systems, automobile, avionics, bio-medical engineering, wireless, telecom
technologies, and many more. Today, HCL sells more PCs in India than any other
brand, runs Northern Ireland's largest BPO operation, and manages the network for
Asia's largest stock exchange network apart from designing zero visibility landing
systems to land the world's most popular airplane.HCL Infosystems Ltd is one of the
pioneers in the Indian IT market, with its origins in 1976. For over quarter of a century,
we have developed and implemented solutions for multiple market segments, across a
range of technologies in India. We have been in the forefront in introducing new
technologies and solutions. In the early 70’s a group of young and enthusiastic and
ambitious technocrats embarked upon a venture that would make their vision of IT
revolution in India a reality. Shiv Nadir and five of his colleagues got together and 1975
set up a new company MICROCOMP to start with; they started to capitalize on their
marketing skills. Micro comp marketed calculators and within a few month of starting
operation, the company was out selling its major competitors. On 11th August, 1976
HINDUSTAN COMPUTERS LIMITED was incorporated as joint venture between the
entrepreneurs and UPSCE, with an initial equity of Rs.1.83 Lacs.

CORPORATE INFORMATION
BOARD OF DIRECTORS Chairman & Chief Executive Officer
Ajai Chowdhry
Whole-time Director & Chief Operating Officer
J.V. Ramamurthy
Directors
S. Bhattacharya
D.S. Puri
R.P. Khosla
E.A. Kshirsagar
Anita Ramachandran
T.S. Purushothaman
Narasimhan Jegadeesh
V.N. Koura
CHIEF FINANCIAL OFFICER Sandeep Kanwar
COMPANY SECRETARY Sushil Kumar Jain
AUDITORS Price Waterhouse, Gurgaon
BANKERS State Bank of India
Canara Bank
HDFC Bank Ltd.
ICICI Bank Ltd.
Societe Generale
Standard Chartered Bank
State Bank of Patiala
State Bank of Saurashtra
The Hongkong and Shanghai Banking Corporation Limited

REGISTERED OFFICE 806, Siddharth,
96, Nehru Place, New Delhi - 110 019.
CORPORATE OFFICE
E - 4, 5, 6, Sector XI, Noida - 201 301 (U.P.)
WORKS • R.S. Nos: 34/4 to 34/7 and part of 34/1, Sedarapet,
Puducherry - 605 111.
• R.S. Nos: 107/5, 6 & 7, Main Road,
Sedarapet, Puducherry - 605 111.
• Plot No 78, South Phase, Ambattur Industrial Estate,
Chennai - 600 058.
• Plot No SPL. A2, Thattanchavadi, Industrial Area,
Puducherry - 605 009.
• Plot Nos. 1, 2, 27 & 28, Sector 5, 11E,
Rudrapur, Distt. - Udham Singh Nagar, Uttarakhand - 263

145.

Awards and Accolades

MISSION AND VISION OF HCL
VISION STATEMENT
"Together we create the enterprises of tomorrow"
MISSION STATEMENT
"To provide world-class information technology solutions and services to enable our
customers to serve their customers better"
HCL
HCL TECHNOLOGY HCL INFOSYSTEM

THE HCL OF TODAY
HCL over its three decades of leadership in the Indian ICT Market has set new benchmarks and
has created newer markets. What began as a dream to build computers for the Indian market
around the then newly emerging technology of microprocessor, HCL today is India’s premier
information enabling and country’s leading ICT system integrator and Distribution Company.
HCL’s strong foundation is in its ability to understand technology & its investment of quality time
in building customer and partner relationships for over three decades. HCL is today an
organisation that offers the full spectrum of Information, office automation, technology products
and services to its customers. HCL has been consistently ranked as a market leader in India for
various product categories both its own and those of its partners. The Company over the last
three decades has built the country’s largest multi-technology ICT product Service Network with
a direct presence in over 360 locations across the country and an equally strong franchisee
service network. Further HCL is today India’s largest vertically integrated ICT manufacturing
house with its State-of the-Art manufacturing facilities at Rudrapur, Chennai and Puducherry.

PRODUCT OF HCL
 Desktops, Notebooks & Mobile Computing
 Middleware –Messaging, EMS, Virtualization, UC
 S4N (Servers, Storage, Security, Software & Network )
 Imaging Products & Solutions
 Digital Copiers & Multifunction Devices

 Projectors
 Digital Duplicators
 Display & Signage Solutions
 Production Printers
 Audio Visual System Integration
 IT
 HCL Desktops/Notebooks
 Kingston D-RAM
 Net books
 SanDisk USB Flash Drives
 HCL LCD Monitors, UPS
 Cisco Linksys Wireless Routers
 HCL PC Essentials
 Western Digital Hard disk
 Telecom
 Nokia GSM Mobile
 Kingston Memory Cards
 Nokia Original Accessories
 SanDisk Memory Cards
 Customer Electronic
 Apple iPod
 MP3 Accessories
 Nintendo
 Altec Lansing Speakers

 Kodak Digital Cameras
 Future Opportunities
 Gaming
 Home Security
 Home Entertainment
 Mobile content &VAS
New Products Launched

SERVICES OF HCL
 IT Infrastructure services
 AMC
 FM
 Managed Services
 Strategic Outsourcing
 Systems Integration related Services
 VPN &Co—hosting Services hosting Services
 SaaS, ITaaS
 Voice Solutions
 Audio and Video Conferencing solutions

Key Investment Highlights OF HCL -

Business Strategy OF HCL -

MANAGEMENT DISCUSSION AND ANALYSIS
OVERVIEW
India is poised to see strong growth in years to come, veiling the current volatile market trends
and inflation worries. Large investments are planned across various sectors by private, PSU
and government initiatives.
BUSINESS OUTLOOK
This year, IT industry is expected to grow by 20% over 2007, as per IDC, which is amongst the
highest rates of growth in the world. With employment to 2.13 crore households already in
place, the National e-Governance Plan (NEGP) is surging ahead with investments of Rs. 23,000
crores planned for initial five years, for identified core projects.
The current technology trends in ICT point to increasing convergence of data, voice and
networks, so that different devices can be networked/managed onsite and remotely. A computer
at the heart of every ICT solution is clearly the emerging trend and is likely to follow for years
ahead. Evolving on the media front, India is becoming a hub for creativity and animation. With
an anticipated demand of Rs. 2200 crores of broadcasting equipment by 2011, the country is
anticipated to ride on the digitisation wave, in all aspects encompassing content creation,
broadcasting etc.
The power sector reforms are focusing on rural electrification, substation automation and
management of both demand and supply sides through smart metering and audits. India is
progressively joining the world forces in adapting to Green practices and energy conservation.
The services sector too is bound to accelerate in providing last mile connectivity through
Broadband Penetration, Roll Out and Value Added Services.
Infrastructure will continue to pave the way for developing India on a faster scale and
investments are planned in several areas, e.g. modernisation of Airports with the latest ICT
equipments being deployed for security and vigilance, baggage clearance, flight arrival and
departure systems, passenger and luggage check in systems. The Ministry of Railways has
formally announced the plans for technology upgradation in railways in areas like passenger
information system, automatic train controls, and signalling etc.
Today, IT has gained an active role in the industry functioning rather than just being the facilitator. It is
playing much larger roles in economic reforms and financial inclusion across the country. For BFSI
Institutions, IT not only enables them to understand their customer’s needs and service them better, but
also to automate operations and strengthen systems. Healthcare industry has now embarked upon
technology in areas like digitisation of patient records and medical history, hospital information systems,
picture archival and control systems and tele-medicine.
With consumers enjoying higher purchasing power and lifestyle preferences, these investments
are creating opportunities for technology equipments, digital lifestyle products and system
integration.

MARKETING AND SELLING STRATEGY
Now days every companies playing strategies so as to attract customers and increase
revenues and also customer base. Pent-up demand, attractive price points and
economic stability propelled PC growth. PCs are acting as entertainment centers with
TV functionality, supported by the digital sound experience and large screen displays.
At present in the market many of telecom companies are running their business. They
introduce their product forcibly, in this way HCL Infosystem Ltd. Differentiate itself with
their successful marketing strategy. HCL Infosystem Ltd. telecom technology's position
relative to these drivers:
Price:-
HCL Infosystem Ltd adopts a strategy to sell their product on DGS&D rate contract
these are the government approved rate contract. So there is no doubt in government
purchases.
Features:
Within the given product module, company introduce best business communication
technology ie. IP PBX. it consist number of feature.
Service Offering:
HCL Infosystem is only a company to provide direct customer services to their

customer. In this way company provide best services to their customer.
Product Flexibility:
HCL Telecom Technology will strive to maintain a lead in the ability of the operator to
easily add schemes and re-configure the system. In addition, HCL Telecom Technology
will maintain an open environment. HCL technology is easy to install & easy to use.
Vendor Experience:
HCL Infosystem Ltd. will follow a stepped strategy to be sure we under-commit and
over-deliver to our customers. HCL Infosystem Ltd has a joint venture with best vendor
and suppliers of like Aastra, tadiran Coral etc.

HCL OVERALL BUSINESS STRATGY
(i) Fair Dealing
The Board Members & Senior Management of the Company shall deal with others in a
fair manner and ensure “Respect for Individual”. Non-compliance will attract disciplinary
action.
(ii) Proper Use of Company Assets
The Board Members & Senior Management of the Company are prohibited from using
Company assets, confidential or proprietary information or position for personal gain.
The Company assets should be used only for the legitimate business purposes of the
Company.
(iii) Compliance with Laws, Rules and Regulations
Any transaction undertaken in the name of the Company that would violate the laws of
the land is prohibited. Particular attention is directed to the laws, rules and regulations
relating to discrimination, securities, antitrust, civil rights, transactions with foreign
officials, safety and the
environment. If any uncertainty arises as to whether a course of action is within the

letter and spirit of the law, advice should be obtained from the Managing Director of the
Company.
(iv) Discrimination and Harassment
The Company is committed to providing a workplace free of discrimination and

harassment based on race, color, religion, age, gender, national origin, disability or any
other biases. It would be the endeavour of every Board Member and Senior
Management of the Company to see that the work place is free from such discrimination
and harassment. If any Officer or Associate is discriminated against, he/she may lodge
a complaint of discrimination or harassment to the Managing Director of the Company.
(v) Political Contributions
Corporate funds, credit, property or services shall not be used, directly or indirectly, to
support any political party or candidate for public office, or to support or oppose any
ballot measure, without the prior approval of the Board of Directors of the Company.

(vi) Confidential Information
Confidential information be it technical, operational or commercial should not be

disclosed to anyone. Such information is confidential and for exclusive use of the
Company.
(viii) Accounting and Reporting
All the Board Members and Officers in Senior Management of the Company are
expected to follow the Company’s Accounting Policies. All accounting records should
accurately reflect and describe corporate transactions. The recordation of such data
must not be falsified or altered in any way to conceal or distort assets, liabilities,
revenues, expenses or the nature of the activity. All public disclosures made by the
Company, including disclosures in reports and documents filed with or submitted to the
Statutory Authorities shall be accurate and complete in all material respects. All the
Board Members & Officers in Senior Management are expected to carefully consider all
inquiries from the Company related to the disclosure requirements and promptly supply
complete and accurate responses.

MARKETING STRATEGY
Mr. Paul added, "As part of our strategy to sustain the number one slot, we plan to
introduce new products that have been designed bearing the customer needs in mind.
We hold numerous user meets across the country every year to get customer feedback
and these new launches are a result of this painstaking, yet rewarding exercise,"HCL
Insys, a technology integrator, offers its customers technology solutions across multiple
platforms. This is as a result of its expertise in developing state-of-the-art indigenous
enterprise solutions; understanding of the networking technology; its design capabilities
in product engineering; integrating diverse hardware components and its access to
specialised technology for turnkey projects through partnerships with various world
class players. With a definite and distinct focus on enterprise solutions and personal
computers, HCL Infosystems (HCL Insys) has direct customer service centres at 143
locations, 6 software export factories and a state-of-the-art manufacturing facility. HCL
Insys has five overseas business entities in US, UK, Australia, Singapore and Malaysia.
HCL Insys manufacturing process are ISO 9001 certified, while its software
development processes have achieved SEI CMM Level 4. The company has recently
set up an Internet subsidiary called HCL Infinet Limited that will provide value added
Internet services in the B2B and B2C areas. With a mission statement to provide world-
class information technology solutions and services to enable its customers to serve
their customers better, HCL Insys is setting new standards of information technology in
India.

KEY PARTNERSHIPS

ALLIANCE AND PARTNERSHIP
To provide world-class solutions and services to all our customers, we have formed
Alliances and Partnerships with leading IT companies worldwide.
HCL Infosystems has alliances with global technology leaders like Intel, AMD, Microsoft,
IBM, Bull, Toshiba, Nokia, Sun Microsystems, Ericsson, NVIDIA, SAP, Scansoft, SCO,
EMC, Veritas, Citrix, CISCO, Oracle, Computer Associates, RedHat, Infocus, Duplo,
Samsung and Novell.
These alliances on one hand give us access to best technology & Products as well
enhancing our understanding of the latest in technology. On the other hand they
enhance our product portfolio, and enable us to be one stop shop for our customers.

HCL AXON Partners with CN to Develop iCREW,
an Industry Solution for Train Crew Management
ORLANDO, FLA - May 12, 2009 – HCL AXON, the world’s largest services provider
dedicated to SAP® solutions, has announced a joint development partnership with CN
to build iCREW. Based on SAP® solutions, iCREW will address the crew management
requirements of organizations that have complex work and job assignment and tracking
rules. HCL AXON will work with CN to develop an industry standard solution based on
SAP solutions for transportation personnel. Today’s announcement was made at
SAPPHIRE® 2009, being held here May 11-14, where HCL AXON is exhibiting in booth
945.
The iCREW solution will allow organizations with large operational workforces to plan,
schedule and assign crews, manage job boards and rotations, manage bulletins, bids
and awards, and provide robust rule processing for end-of-shift reporting, claims
validation, time-to-gross calculations and labor distribution. iCREW will be developed
and tested according to HCL AXON’s proven product delivery methodology. HCL
AXON and CN intend for iCREW to integrate with the SAP ERP application, as well as
the SAP ERP Human Capital Management (SAP ERP HCM) and SAP ERP Financials
solutions and the SAP Transportation Management (SAP TM) application.
While iCREW will be initially targeted at the train crew deployment requirements of the
railroad industry, HCL AXON’s development team will work with partners in other
industries, including airlines, postal services and logistics, in order to help ensure that
their requirements can be incorporated into iCREW.
iCREW will be developed by the same HCL AXON product development center that
has delivered iMRO, the result of joint product development with SAP AG that delivers
significant new functionality for organizations that manage large, complex assets,
including aerospace & defense, travel and logistics organizations. It is intended that
iCREW will integrate with iMRO to allow the management and deployment of
engineering crews.
Commenting on the iCREW partnership agreement, Alan Capes, CN’s director of

Information Technology Business Development & Strategic Planning said ”CN has
already delivered major cost savings and business value through the deployment of
SAP solutions across its back-office and asset management functions. Using iCREW to
create an integrated crew management solution that leverages CN’s investments in its

SAP solution-based platform should generate additional significant savings and
efficiencies in train operations.”
“CN is laser-focused on driving the best asset utilization in the industry and knows how
to leverage SAP solutions to deliver significant business improvements,” said Ian
Greenhalgh, EVP of Sales and Marketing of HCL AXON. “We are delighted to partner
with CN to extend their solution to deliver further cost and utilization efficiencies. Our
rapid development of eSOA-compliant solutions such as iCREW and iMRO fully
leverage a business process platform to deliver a strategic advantage to our customers
in an increasingly competitive and cost-conscious global environment.”
About HCL AXON

HCL AXON (www.hcl-axon.com), a division of HCL Technologies, is a Business
Transformation consultancy that delivers significant value to large, complex
organizations through the innovative implementation and support of SAP technologies.
HCL AXON has over 4,700 of the industry’s most experienced professionals
specializing in the delivery of sustained business improvement through technology
enabled transformation programs. HCL AXON's consultants bring in-depth industry
expertise alongside best practice functional knowledge to address the strategic,
operational, information management and organizational effectiveness challenges faced
by organizations today. HCL AXON is renowned for its global ability to help clients
define more ambitious strategies, build more effective organizations and shape more
successful futures.
About HCL AXON

HCL AXON (www.hcl-axon.com), a division of HCL Technologies, is a Business
Transformation consultancy that delivers significant value to large, complex
organizations through the innovative implementation and support of SAP technologies.
HCL AXON has over 4,700 of the industry’s most experienced professionals
specializing in the delivery of sustained business improvement through technology
enabled transformation programs. HCL AXON's consultants bring in-depth industry
expertise alongside best practice functional knowledge to address the strategic,
operational, information management and organizational effectiveness challenges faced
by organizations today. HCL AXON is renowned for its global ability to help clients
define more ambitious strategies, build more effective organizations and shape more
successful futures.

About HCL Technologies
HCL Technologies is a leading global IT services company, working with clients in the
areas that impact and redefine the core of their businesses. Since its inception into the
global landscape after its IPO in 1999, HCL focuses on ‘transformational outsourcing’,
underlined by innovation and value creation, and offers integrated portfolio of services
including software-led IT solutions, remote infrastructure management, engineering and
R&D services and BPO. HCL leverages its extensive global offshore infrastructure and
network of offices in 20 countries to provide holistic, multi-service delivery in key
industry verticals including Financial Services, Manufacturing, Aerospace & Defense,
Telecom, Retail & CPG, Life Sciences & Healthcare, Media & Entertainment, Travel,
Transportation & Logistics, Automotive, Government, Energy & Utilities. HCL takes
pride in its philosophy of ‘Employee First’ which empowers our 54,026 transformers to
create a real value for the customers. HCL Technologies, along with its subsidiaries,
had consolidated revenues of US$ 2.0 billion (Rs. 9,842 crores), as on 31st March
2009.
About HCL Enterprise

HCL is a $5 billion leading Global Technology and IT Enterprise that comprises two
companies listed in India - HCL Technologies & HCL Infosystems. The 3-decade-old
Enterprise, founded in 1976, is one of India's original IT garage start-ups. Its range of
offerings spans Product Engineering, Custom & Package Applications, BPO, IT
Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT
products. The HCL team comprises over 59,000 professionals of diverse nationalities,
who operate from 20 countries including 360 points of presence in India. HCL has
global partnerships with several leading Fortune 1000 firms, including leading IT and
Technology firms.
Forward-looking Statements
Certain statements in this release are forward-looking statements, which involve a
number of risks, uncertainties, assumptions and other factors that could cause actual
results to differ materially from those in such forward-looking statements. All statements,
other than statements of historical fact are statements that could be deemed forward

looking statements, including but not limited to the statements containing the words
'planned', 'expects', 'believes', 'strategy', 'opportunity', 'anticipates', 'hopes' or other
similar words. The risks and uncertainties relating to these statements include, but are
not limited to, risks and uncertainties regarding impact of pending regulatory
proceedings, fluctuations in earnings, our ability to manage growth, intense competition
in IT services, Business Process Outsourcing and consulting services including those
factors which may affect our cost advantage, wage increases in India, customer
acceptances of our services, products and fee structures, our ability to attract and retain
highly skilled professionals, our ability to integrate acquired assets in a cost effective
and timely manner, time and cost overruns on fixed-price, fixed-time frame contracts,
client concentration, restrictions on immigration, our ability to manage our international
operations, reduced demand for technology in our key focus areas, disruptions in
telecommunication networks, our ability to successfully complete and integrate potential
acquisitions, the success of our brand development efforts, liability for damages on our
service contracts, the success of the companies / entities in which we have made
strategic investments, withdrawal of governmental fiscal incentives, political instability,
legal restrictions on raising capital or acquiring companies outside India, and
unauthorized use of our intellectual property, other risks, uncertainties and general
economic conditions affecting our industry. There can be no assurance that the forward
looking statements made herein will prove to be accurate, and issuance of such forward
looking statements should not be regarded as a representation by the Company, or any
other person, that the objective and plans of the Company will be achieved. All forward
looking statements made herein are based on information presently available to the
management of the Company and the Company does not undertake to update any
forward-looking statement that may be made from time to time by or on behalf of the
Company.

ACQUISITIONS & JOINT VENTURES
HCL and Celestica Form Innovative Joint
Venture
Integrated Offering Accelerates Concept-to-Manufacturing
Solutions for Global OEM Customers
November 14, 2006 – Sunnyvale, CA and Toronto, Ontario – HCL Technologies Ltd.
(“HCL”), a leading global engineering, R&D, IT services, and business process
outsourcing firm, and Celestica Inc. (NYSE, TSX: CLS), a world leader in electronics
manufacturing services (EMS), today announced that the two companies have entered
into an agreement to form a joint venture to provide complete concept-to-manufacturing
(C2M) solutions for original equipment manufacturers (OEMs). Through this
collaborative venture, the two companies are driving change in an increasingly
competitive market by offering seamlessly integrated design, manufacturing and supply
chain solutions. This is the first joint venture of this kind in the electronics industry.
Historically outsourcing has often involved multiple suppliers handling various aspects
of the product lifecycle. This joint venture will provide a fully integrated product lifecycle
solution to OEM customers – including product concept, design, engineering,
manufacturing, fulfillment, sustaining engineering, reverse logistics and after-market
services. HCL’s broad and scalable design engineering capabilities combined with
Celestica’s existing strengths in hardware design for manufacturability and supply chain
integration create an exciting new alternative for OEMs seeking time-to-market and total
cost advantages.
This joint venture cements an existing three-year relationship between the two
companies, through which HCL and Celestica have successfully provided integrated
solutions to customers across the telecom, enterprise, consumer, medical, aerospace
and semiconductor sectors. HCL’s strength in software development complements
Celestica’s hardware focus and is already being leveraged in Celestica’s existing
Solutions Accelerator platforms for server blades, WiMAX, ATCA and storage
equipment.
“By recognizing the increasing complexity of the marketplace, including rapidly changing
customer demand, and the difficulties of managing multiple partners at different stages
of the product lifecycle, a new market is being created through this joint venture. It

removes a level of complexity, allowing OEM customers to focus on their core business
and strategic initiatives,” said Vineet Nayar, President, HCL Technologies.
“Our customers are increasingly being challenged to compress their concept-to-

manufacturing schedule,” said Dave Tiley, Senior Vice President, Global Services,
Celestica. “This exciting joint venture between two world-class companies creates a
highly integrated, flexible offering that enables OEMs to focus on IP generation while
Celestica and HCL focus on time-to-market and total cost of ownership.”
The venture is aligned with HCL’s blue ocean strategy to create uncontested market
spaces and create additional value for its customers, as well as Celestica’s strategic
mandate to continually bring cost and time-to-market benefits to customers through its
integrated global services and solutions. This strategic alignment will provide a unique
proposition of a single point of contact for OEM customers – from concept to
manufacturing – leveraging the strength of both industry leaders.
About HCL Technologies
HCL Technologies is one of India’s leading global IT Services companies, providing

software-led IT solutions, remote infrastructure management services and BPO. Having
made a foray into the global IT landscape in 1999 after its IPO, HCL Technologies
focuses on Transformational Outsourcing, working with clients in areas that impact and
re-define the core of their business. The company leverages an extensive global
offshore infrastructure and its global network of offices in 16 countries to deliver
solutions across select verticals including Financial Services, Retail & Consumer, Life
Sciences, Hi-tech and Manufacturing, Telecom and, Media and Entertainment. HCL
Technologies, along with its subsidiaries had revenue of US $ 1.058 billion (Rs. 4797
crore) for the twelve month period ending 30 September 2006, and employed 36,452
professionals.
About HCL Enterprise
HCL Enterprise is a leading global technology and IT enterprise with annual revenues of
US $3.7 billion (Rs. 16,789 crores). The HCL Enterprise comprises two companies
listed in India - HCL Technologies & HCL Infosystems. The 3-decade-old enterprise,
founded in 1976, is India’s original IT garage start-up. Its range of offerings span
Product Engineering, Technology and Application Services, BPO, Infrastructure
Services, IT Hardware, Systems Integration, and distribution of ICT products. The HCL
team comprises 40,999 professionals of diverse nationalities, who operate from 16
countries including 300 points of presence in India. HCL has global partnerships with
several leading Fortune 1000 firms, including leading IT and Technology firms.

Forward Looking Statements

number of risks, and uncertainties that could cause actual results to differ materially
from those in such forward-looking statements. The risks and uncertainties relating to
these statements include, but are not limited to, risks and uncertainties regarding
fluctuations in earnings, our ability to manage growth, intense competition in IT services
including those factors which may affect our cost advantage, wage increases in India,
our ability to attract and retain highly skilled professionals, time and cost overruns on
fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration,
our ability to manage our international operations, reduced demand for technology in
our key focus areas, disruptions in telecommunication networks, our ability to
successfully complete and integrate potential acquisitions, liability for damages on our
service contracts, the success of the companies/ entities in which we have made
unauthorized use of our intellectual property and general economic conditions affecting
our industry. The company does not undertake to update any forward-looking statement
that may be made from time to time by or on behalf of the company.
Other product or service names mentioned herein are the trademarks of their
respective owners.
About Celestica
Celestica is a world leader in the delivery of electronics manufacturing services (EMS).
Celestica operates a global manufacturing network with operations in Asia, Europe and
the Americas, providing a broad range of integrated services and solutions to leading
OEMs (original equipment manufacturers).
Celestica Safe Harbour and Fair Disclosure Statement

This news release contains forward-looking statements related to our future growth,
trends in our industry and our financial and operational results and performance that are
based on current expectations, forecasts and assumptions involving risks and
uncertainties that could cause actual outcomes and results to differ materially. These
risks and uncertainties include, but are not limited to: the challenges of effectively

managing our operations during uncertain economic conditions; the challenge of
responding to lower-than-expected customer demand; the effects of price competition
and other business and competitive factors generally affecting the EMS industry; our
dependence on the computer and communications industries; our dependence on a
limited number of customers and on industries affected by rapid technological change;
component constraints; variability of operating results among periods; and the ability to
manage expansion, consolidation and the integration of acquired businesses. Report
on Form 20-F and subsequent reports on Form 6-K filed with the Securities and
Exchange Commission.

REVIEW OF LITERATURE

The Software and IT Industry in India: Opportunities and
Challenges
By Narayana Murthy (Chairman and CEO, Infosys Technologies)
First of all, I really feel very happy being here today. I do get an opportunity to address
audiences in several parts of the world and never before have I felt so happy as I am
today - for a very important reason. To me, Hong Kong represents the best in
entrepreneurship. It is the mecca of entrepreneurship. It is heaven for entrepreneurs.
And, as an amateur entrepreneur who took his company from US$250 in 1981 to
US$15 billion based on Indian market cap and US$27 billion based on the Nasdaq
market cap, I feel so awed, I feel so dwarfed by the environment in this country.
Whether I go into a shop and meet a salesgirl, whether I meet hawkers on the street,
whether I meet corporate leaders, the message is dynamism, entrepreneurship and
can-do spirit. So I'm extremely grateful to Ronnie Chan, the Asia Society, Shankar, the
Bank of America, everyone of you for this opportunity.
I will be speaking on the Indian software industry, the opportunities and the challenges.
Our vision is to make India the country of choice for customised software development.
We in the Indian software industry believe that customised software development and
maintenance is where there will be continued opportunities in the years to come. Unlike
in the product marketplace, where one product could probably replace another, as we
have seen time and again, in this industry we believe that the market opportunity will
continue to grow for a very simple reason.
As long as corporations world-wide embrace new technologies, new business models,

new paradigms and leverage the power of these to bring benefits to its consumers, we
believe we have a role to play. After all, we all know, as Professor Michael Porter once
said, strategy is about being unique in a marketplace, and being unique requires that
you create a layer of customisation around even standard packing. And that's where we
believe India will have an opportunity.
Let me talk to you a little about what the influential thinkers say about India. The World
Bank's today rated India as No. 1 by the US people, as far as software outsourcing was
concerned. The same thing with Der Spiegel, the famous German business daily. More
than 25 per cent of Fortune 1000 companies use India as their software outsourcing
centre. You can't really be recognised in the marketplace unless Nasdaq and the other
well-known people in the marketplace recognise you.
Well, Indians have been able to contribute very significantly on a global scale in the
high-tech area. UC Berkeley Professor AnnaLee Saxenian, made a study recently and

found that somewhere between 27 and 29 per cent of start-ups in Silicon valley are
headed by people of Indian origin. Hotmail, Sycamore, and Exodus are some great
examples. Sycamore, a company founded in Boston, offered their stocks at $38 and it
ended the first day at $270.
Well, it happens to be founded by a cousin of mine. Of course, Infosys is talking about

India and Infosys has the largest market cap amongst all the players in our market
basket in the US. The market cap of Infosys among the market's software services
companies is much more than all of the players put together.
And as I was telling you earlier, unless you talk about Nasdaq the story is not
complete."In the heart of India amid an age old culture one company has pioneered a
new way of doing business. Using cutting edge processors and communications,
Infosys designs and builds software solutions for the world. Working 24 hours a day
delivering overnight to clients around the globe, Infosys is growing an average of 60 per
cent a year. Where do you learn about aggressive, innovative companies? Exactly,
Nasdaq, the stock market for a digital world." (Nasdaq video clip)
Some well-known names have endorsed India's competence and have started their
own captive workshops, captive software units, including Sony, Microsoft, Hewlett
Packard, and GE. Every one of them has found that it pays to have software developed
from India.
What are the competitive advantages of the Indian software industry? First, the
availability of a large number of professionals who speak English - with a different
accent of course, but hopefully reasonably understandable. India has the second largest
manpower or talent pool available after the United States. This certainly has been
recognised by several countries today including the US, the UK, and Germany. The
Ambassador from Norway was telling me how they too are going to roll the red carpet
out for Indian professionals.
The fact that India missed the Industrial Revolution, the fact that there are certain caste
systems in India, meant that Indian intellectuals had to make do with pen and paper. For
the first time in the history of this world there has been an opportunity created for people
who are comfortable with pen and paper, and that's in the software industry. No wonder
then that India has leveraged this opportunity to grow.
The attractive wage structure in India is of course a very important point. The average
salary for an Indian software professional is somewhere around 20 to 25 per cent of the
corresponding wages in the US.
Of course, the orientation of quality, methodology and technology of Indian companies

is yet another important reason why India has been able to grow from strength to

strength in this industry. In particular, the concept of project management is something
that has been extremely well practised in the Indian software industry.
Finally, I must say that this is one industry where the government has been very
proactive, has gone out on a limb and made sure that the industry has a chance to
succeed on a global level. I don't know how many of you know, today the best taxation
regime for stock option plans is from India. It is much better than the US because in
India what they have said is that stock options will be taxed only on the basis of capital
gains at the time of sale of the stocks. The capital gains in India is just 11 per cent. For
once we are even better than Hong Kong. I can tell you that's a rare thing.
The value proposition of the Indian software industry can be summed up as "faster,
better, and cheaper." The Indian companies have taken responsibility on an end-to-end
basis for new software development and for re-engineering. What do I mean by re-
engineering? I mean by re-engineering taking an existing piece of software and making
sure that it is upgraded to keep pace with changes in technology, or changes in the
marketplace.
India companies understand the importance of maintenance. What do I mean by

maintenance? I mean by maintenance, not only the 5 per cent of the time where the
effort in maintenance is taken up in back-fixing, but also the 95 per cent, and most often
as much as 97 per cent of the time, where it is taken up in organically evolving the
software to keep pace with changes in business practices. So, that is really
maintenance and that's an area where the Indian software industry has taken
responsibility.
Indian software companies have also been very proactive in accepting, embracing, and
practising state of the art methodologies and processes; in investing heavily in tools,
technology, and infrastructure; in reducing time to market as well as cost; and in
improving quality, productivity, and response time.
It's almost impossible today to think of any industry in the world, or any leader in that
industry, without realising that behind that success is an Indian standing developing the
information infrastructure for that company. W hether you talk in terms of Bank of
America, Levi Strauss, J.P. Morgan, Nike, Singapore Airlines, Swissair, Microsoft, Sony
or Hitachi, you would notice that that these companies have leveraged the power of the
Indian software industry.
In the new paradigm, the Indian software industries have brought tremendous value in
the area of e-commerce. Nobody can be a significant player unless they understand
and embrace the depth of distance and the "anytime, anywhere" paradigm that's
brought to the table by e-commerce. Indian companies have of course embraced it in a
big way and have helped corporations all over the world derive benefits from this

paradigm. My own company derived about 18.8 per cent of its revenues last quarter
from e-commerce.
As the miniaturisation in computing goes faster and faster, as the power of broadband
communication increases, we will all see a move towards appliance computing. To
control the appliances on a remote basis from the office or where ever, you need
appliance computing and that's where the Indian software industry is working along with
some of the leading people in the world. Customer service is of course very important.
You know, customer relations management has become very critical these days in the
crowded marketplace where competition is fierce. Our fundamental model is what's
called the "global software delivery model". What this model does is it seeks to minimise
the amount of time that we need to spend at customer locations and maximise the effort
that we can spend at cost competitive locations in countries like India.
I define "globalisation" as sourcing the global capital from where it is cheapest,

reducing where it is most cost effective, and selling where it is most profitable, without
worrying about national boundaries. In keeping with that, the global delivery model
reduces the cost to the customer and brings tremendous value. The advantages of this
model are twofold: (1) it's a scaleable model because countries like India have a large
number of professionals; and (2) it also brings tremendous monetary opportunity for the
customer.
On a good day, when the economy's doing well, it is easy for Indian companies to
enhance their per capita revenue productivity. On a bad day, should the market go bad -
that's what I don't want to happen - but if it did then the customers are much more likely
to persist with the Indian companies because of their lower cost structure. This is a
win/win proposition for the Indian software companies.
The Indian software industry was just US$5.6 billion last year. Of course that is very
small by US standards. But what is impressive is that this is growing at a significant rate
somewhere around 40 to 50 per cent. Out of this the export figure was US$3.9 billion
and once again the growth rates are very, very high.
The primary export destination is the United States and Canada. We are in the US
contributing about 25 per cent, Japan a small 4 per cent and we believe, as we move
forward, Asia will play a much more significant role than it has in the past in bringing
tremendous business opportunity to Indian software companies.
The aspiration of the Indian software industry is to get to US$50 billion by 2008 and
US$35 billion in the domestic market. Of course, this means tremendous growth even in
the domestic market, but let me tell you that even the domestic market is growing at a
frenetic 40 to 50 per cent year after year, though the base is much lower.

The reason why this is all happening is due to a large pool of skilled professionals --
about half a million students graduating from engineering schools in the country. There
are 10,000 colleges for science education, 116 universities and 500 institutes that
provide computer education.
McKinsey conducted a study where they compared India with various competitors and
they found that India brings tremendous value for money. In this 2 x 2 matrix, India is on
the high side in terms of quality and low in terms of cost. Countries like Israel and
Singapore are high in quality but high in cost too. Countries like China, the Philippines,
and Hungary are low in quality and low in cost too. Quality is an extremely important
thing in our business. Of the 300 top Indian companies, about 185 or so will have
reached ISO 9001 by June and the rest of them by September or so. One of the
important paradigms of quality is what is called the capability maturity model. This
model is a software specific model enunciated by the Software Engineering Institute. 13
of the 20 companies certified at the highest level, level 5 of the capability maturity
model, are from India. Indian companies are taking to this as if there's going to be no
tomorrow and this is a very positive thing.
What is the new paradigm? I believe asynchronicity in product development will be the
norm because, asynchronicity improves productivity. Second, a global workforce in high
tech will become the norm. Once upon a time, it was in the area of low tech items like
shoes and apparel which offered opportunity for a global workforce. Now I think it's
going to be in the high tech area. A collaborative distributor development model will
become very important. For example, conceptualisation in Canada, architecture in
France, design and programming in India and hardware in Taiwan will not raise the
eyebrows of anybody.
24-hour service will become mandatory for corporations. What that means is when you
combine the prime time of India with the prime time of the United States, you get 24
hour work days. In fact, already today it is happening in quite a few cases but I think this
will become the norm. Collaborative maintenance and product problem solving,
particularly based on geographically distributed knowledge teams, will become very
popular and will in fact become mandatory.
India will become an important player in this paradigm. Engineers from India will
become proactive innovators, and of course thanks to video conferencing technologies,
Indian engineers will contribute from their homes and offices to making corporations
becoming very, very powerful in the new marketplace. Architecture and design from
India will become more common than it is today and back office support for the help
desk will also be provided from countries like India.

It's not just India. I'm sure China will become a very major player in this field as we
move forward. I am a great Sinophile and have tremendous respect for China. I think
the Chinese are making a great effort in learning English. I have no doubt in the next 5
years China will become a very significant player in this area
This is what one of the New York IT services companies said.
"This is a business where execution really differentiates the winners from the losers and
also a very well thought out differentiated delivery model. They've done a great job of
combining the benefits of doing onsite project management and delivery with an
offshore capability that really complements their core competence which is really project
management, delivering very complex software applications and really leveraging the
economic benefits, the time to market benefits, as well as the quality that you can get
into an What are our challenges as we move forward? I believe that Indian companies
will have to show speed, imagination and excellence in execution in everything that we
do because I find that these are the only three context-and-variant and time-and-variant
attributes for success in the marketplace.
Global brand equity is extremely important because without global brand equity you
can't enhance your per capita and your productivity and you can't become bigger and
bigger. The ability to manage growth, particularly as a multi-cultural company, is a big
challenge that we have.
And if there's one challenge that all the people-driven companies all over the world face,
including the software industry, it is the ability to attract "enabled" and "empowered"
employees. By that I mean trained employees capable of creating synergy between
organisational objectives and individual aspiration. Bringing in the best and the brightest
professionals is an important challenge because it provides sustainable and
demonstrable value addition .
As Indian companies start looking at acquisitions more and more seriously, they will
have to learn to acquire companies abroad and run them very successfully. Adaptability,
agility and flexibility to respond to market needs is another important factor that Indian
companies will face and of course strong customer retention.

INFORMATION TECHNOLOGY IN INDIA
The Indian Information Technology industry accounts for a 7.5% of the

country's GDP. In March 2009, annual revenues from outsourcing operations in India
amounted to US$60 billion and this is expected to increase to US$225 billion by 2020.
The most prominent IT hubs are IT capital Bangalore and presently growing Chennai.
The other emerging destinations are Hyderabad, Pune, Delhi, Coimbatore and Kolkata.
Technically proficient immigrants from India sought jobs in the western world from the
1950s onwards as India's education system produced more engineers than its industry
could absorb. However, there are severe skills shortage among engineers, especially
who lack in soft skill and technical skill, as a result engineering graduates remain
unemployed after being pass out from college or university. India's growing stature in
the information age enabled it to form close ties with both the United States of America
and the European Union.
Each year India produces roughly 500,000 engineers in the country out of them 25% to
30% possessed both technical competency and English language skills, although 10%
of India's population can speak in English out of 100. India developed a number of
outsourcing companies specializing in customer support via Internet or telephone
connections. By 2009, India also has a total of 37,160,000 telephone lines in use, a total
of 506,040,000 mobile phone connections,[5] a total of 81,000,000 Internet users—
comprising 7.0% of the country's population, [6] and 7,570,000 people in the country have
access to broadband Internet— making it the 12th largest country in the world in terms
of broadband Internet users. Total fixed-line and wireless subscribers reached 543.20
million as of November, 2009.
Formative years (till 1991)
The Indian Government acquired the EVS EM computers from the Soviet Union,
which were used in large companies and research laboratories. Tata Consultancy
Services—established in 1968 by the Tata Group—were the country's largest software
producers during the 1960s. As an outcome of the various policies of Jawaharlal Nehru
(office: 15 August 1947 – 27 May 1964) the economically beleaguered country was able
to build a large scientific workforce, second in numbers only to that of the United States
of America and the Soviet Union. On 18 August 1951 the minister of education Maulana
Abul Kalam Azad, inaugurated the Indian Institute of Technology at Kharagpur in West
Bengal. Possibly modelled after the Massachusetts Institute of Technology these
institutions were conceived by a 22 member committee of scholars and entrepreneurs
under the chairmanship of N. R. Sarkar.

Relaxed immigration laws in the United States of America (1965) attracted a number of
skilled Indian professionals aiming for research. By 1960 as many as 10,000 Indians
were estimated to have settled in the US. Kapur (2006) the reason for this immigration
was rooted in India producing more engineers through its education system—expanded
during the 1950s—than its industry was able to absorb. By the 1980s a number of
engineers from India were seeking employment in other countries. In response, the
Indian companies realigned wages to retain their experienced staff. In the
Encyclopaedia of India, Kamdar (2006) reports on the role of Indian immigrants (1980 -
early 1990s) in promoting technology-driven growth:
The United States’ technological lead was driven in no small part by the brain power of
brilliant immigrants, many of whom came from India. The inestimable contributions of
thousands of highly trained Indian migrants in every area of American scientific and
technological achievement culminated with the information technology revolution most
associated with California’s Silicon Valley in the 1980s and 1990.
The National Informatics Centre was established in March 1975. The inception of The
Computer Maintenance Company (CMC) followed in October 1976. Between 1977-
1980 the country's Information Technology companies Tata Infotech, Patni Computer
Systems, and Wipro, had become visible. The 'microchip revolution' of the 1980s had
convinced both Indira Gandhi and her successor Rajiv Gandhi that electronics and
telecommunications were vital to India's growth and development. MTNL underwent
technological improvements. Between 1986-1987, the Indian government embarked
upon the creation of three wide-area computer networking schemes: INDONET
(intended to serve the IBM mainframes in India), NICNET (the network for India's
National Informatics Centre), and the academic research oriented Education and
Research Network (ERNET).
1991–2001
In 1991 the Department of Electronics broke this impasse, creating a corporation called
Software Technology Parks of India (STPI) that, being owned by the government, could
provide VSAT communications without breaching its monopoly. STPI set up software
technology parks in different cities, each of which provided satellite links to be used by
firms; the local link was a wireless radio link. In 1993 the government began to allow
individual companies their own dedicated links, which allowed work done in India to be
transmitted abroad directly. Indian firms soon convinced their American customers that a
satellite link was as reliable as a team of programmers working in the clients’ office.
Videsh Sanchar Nigam Limited (VSNL) introduced Gateway Electronic Mail Service in
1991, the 64 Kbit/s leased line service in 1992, and commercial Internet access on a

visible scale in 1992. Election results were displayed via National Informatics Centre's
NICNET.
The Indian economy underwent economic reforms in 1991, leading to a new era
of globalization and international economic integration. Economic growth of over 6%
annually was seen between 1993-2002. The economic reforms were driven in part by
significant the internet usage in the country. The new administration under Atal Bihari
Vajpayee—which placed the development of Information Technology among its top five
priorities— formed the Indian National Task Force on Information Technology and
Software Development.
Wolcott & Goodman (2003) report on the role of the Indian National Task Force on
Information Technology and Software Development:
Within 90 days of its establishment, the Task Force produced an extensive background
report on the state of technology in India and an IT Action Plan with 108
recommendations. The Task Force could act quickly because it built upon the
experience and frustrations of state governments, central government agencies,
universities, and the software industry. Much of what it proposed was also consistent
with the thinking and recommendations of international bodies like the World Trade
Organization (WTO), International Telecommunications Union (ITU), and World Bank.
In addition, the Task Force incorporated the experiences of Singapore and other
nations, which implemented similar programs. It was less a task of invention than of
sparking action on a consensus that had already evolved within the networking
community and government.
The New Telecommunications Policy, 1999 (NTP 1999) helped further liberalize India's
telecommunications sector. The Information Technology Act 2000 created legal
procedures for electronic transactions and e-commerce.
Throughout the 1990s, another wave of Indian professionals entered the United States.
The number of Indian Americans reached 1.7 million by 2000. This immigration
consisted largely of highly educated technologically proficient workers. Within the United
States, Indians fared well in science, engineering, and management. Graduates from the
Indian Institutes of Technology (IIT) became known for their technical skills. The success
of Information Technology in India not only had economic repercussions but also had
far-reaching political consequences. India's reputation both as a source and a
destination for skilled workforce helped it improve its relations with a number of world
economies. The relationship between economy and technology—valued in the western
world—facilitated the growth of an entrepreneurial class of immigrant Indians, which
further helped aid in promoting technology-driven growth.

2001–Present
The economic effect of the technologically inclined services sector in India—accounting

for 40% of the country's GDP and 30% of export earnings as of 2006, while employing
only 25% of its workforce—is summarized by Sharma (2006):
The share of IT (mainly software) in total exports increased from 1 percent in 1990 to 18
percent in 2001. IT-enabled services such as back office operations, remote
maintenance, accounting, public call centres, medical transcription, insurance claims,
and other bulk processing are rapidly expanding. Indian companies such as TCS,
Wipro, and Infosys may yet become household names around the world.
Today, Bangalore is known as the Silicon Valley of India and contributes 33% of Indian
IT Exports. India's second and third largest software companies are head-quartered in
Bangalore, as are many of the global SEI-CMM Level 5 Companies.
Such is the growth in investment and outsourcing; it was revealed that Cap Gemini will
soon have more staff in India than it does in its home market of France with 21,000
personnel+ in India. [10]
On 25 June 2002 India and the European Union agreed to bilateral cooperation in the
field of science and technology. A joint EU-India group of scholars was formed on 23
November, 2001 to further promote joint research and development. India holds
observer status at CERN while a joint India-EU Software Education and Development
Centre is due at Bangalore.
The master control of 'Indian IT Industry' is in the hands of Department of Information

Technology (DOT) which aims to make ' India IT Industry ', a Global IT Super Power by
2008 - a front-runner and bring the benefits of electronics to every walk of life. Further, it
is focused on Creation of Wealth, Employment Generation and IT led Economic Growth.
According to sources, annual revenue projections for ' India IT Industry ' in 2008 are US
$ 87 billion and market openings are emerging across four broad sectors, IT services,
software products, IT enabled services, and e-businesses thus creating a number of
opportunities for Indian companies.
IT Exports will account for 35% of the total exports with potential for 2.2 million jobs in IT
by 2008.
IT industry will attract Foreign Direct Investment (FDI) of U.S. $ 4-5 billion.

Market capitalization of IT shares will be around U.S. $ 225 billion.
With the formation of a new ministry for IT, Government of India (GOI) has taken major
steps towards promoting ' India IT Industry '. It has taken steps to promote angel
investors, venture creators and incubation to promote -
 Electronics and hardware manufacturing.

 R&D.
 Increase PC penetration.
 Increase utilization of Internet.
 Domestic software market.
 Development of local language software.
 Use of IT to increase productivity.
 Use of IT as a means of generating employment.
 Availability of technical work force.
 Number and quality of training facilities.
'IT Industry India ' is a knowledge industry that will help take the Indian economy to a
new horizon and further change the ' Scenario of Indian IT Industry' furling India's
economic growth
Some of the major reasons for the significant growth of the IT industry
of India are –:
Abundant availability of skilled manpower

 Reduced telecommunication and internet costs
 Reduced import duties on software and hardware products
 Cost advantages
 Encouraging government policies
Some of the major companies in the IT industry of India are:
 Tata Consultancy Services (TCS)

 Infosys
 Wipro
 IBM
 HP
 HCL
 Cognizant Technology Solutions (CTS)

 Patni
 Satyam
 NIIT
India's IT industry caters to both domestic and export markets. Exports contribute
around 75% of the total revenue of the IT industry in India. The IT industry can be
broadly divided into four segments -
 IT services
 Software (includes both engineering and Research and Development)
 ITES-BPO
 Hardware
India's IT industry (USD bn) [Source:NASSCOM]

Particulars FY 2004 FY 2005 FY 2006 FY 2007
IT Services 10.4 13.5 17.8 23.7
- Exports 7.3 10.0 13.13 18.1
- Domestic 3.1 3.5 4.5 5.6
ITES-BPO 3.4 5.2 7.2 9.5
- Exports 3.1 4.6 6.3 8.3
- Domestic 0.3 0.6 0.9 1.2
Engineering services, R&D and Software products 2.9 3.9 5.3 6.5
- Exports 2.5 3.1 4.0 4.9
- Domestic 0.4 0.7 1.3 1.6
Hardware 5.0 5.9 7.0 8.2
Total IT industry 21.6 28.4 37.4 47.8
- Exports 13.4 18.2 24.1 31.9
- Domestic 8.3 10.2 13.2 15.9
Some of the important aspects of the NASSCOM- McKinsey report related to the size of
India's IT industry are -
 there is potential of 2.2 million people being employed in the IT industry of India by the
end of 2008.
 Contribution of software and services to the total GDP of India will be more than 7.5%.

 FDI (Foreign Direct Investment) of 4.5 billion US Dollars expected in the IT industry by
the end of 2008.
 35% of total exports from India will be from IT exports.
 225 billion US Dollars worth of market capitalization from IT shares. Software and
services are exported to about 95 companies from India. North America accounts for
61% of the software exports from India. The projections about the size of India's IT
industry present a very optimistic picture. The industry is expected to grow to double its
current size by the year 2012. India's IT industry is expected to grow at an annual
average rate of 18% in the next five years. The industry is also expected to cross the
100 billion US Dollar mark by 2011. One of the major areas of growth for the IT industry
of India is by tapping the potential in the domestic market. The IT industry of India is
largely dependent on the export market. Penetrating more into the domestic market
would create further opportunities of growth for the IT industry.
Top Players in Indian IT Industry
The leading companies in the information technology industry of India are HCL
Corporation Ltd, Aditya Technologies, NIIT Ltd, Asset Infotech Ltd, Patni Computer
Systems (P) Ltd, Atari Informatics Ltd, Polaris Software Lab Ltd, Baan Info Systems
India P Ltd, B-commerce Infosystems Pvt Ltd, HCL Infosystems Ltd, Cerulean
Information Technology Pvt Ltd, Hexaware Technologies Ltd, Iflex Solutions Ltd, CMC
Ltd, Igate Global Solutions Ltd, Wipro Ltd, Infosys Technologies Ltd, Satyam Computer
Services Ltd, Larsen & Toubro Ltd, Tata Consultancy Services, Tata Infotech Ltd and
Mastek Ltd. Aditya Technologies was established on the 25th of October, 1988. The firm
is primarily a specialist in the field of making and selling of official equipments. A
member of the small scale industrial fraternity of India the company has offices all over
the country. Asset Infotech Ltd deals in the provision of education as well as solutions in
the field of information technology. Atari Informatics Ltd was incorporated in 2000.
The company provides a number of services including - consultancy services, providing

education and training on life insurance and non life insurance services and products
and total solutions. It also operates a number of specialized and professional training
institutes as well.
Baan Info Systems India P Ltd is based in the city of Mumbai. It provides a number of
products and services to its clients like third party reporting software that includes Safari
and Crystal Reports manufacturing, projects, finance, and exchange, supply chain,
EDI, sales, front office, distribution, e-commerce and DEM. HCL Infosystems is one of
the major software companies of India. It was established in 1976 and deals in a number
of products and services like desktops and notebooks, security products, workstations,

storage solutions, servers, HCL storage solutions, chipsets, HCL IGL NAS servers, sun
servers, SUN storage solutions, thin clients, EMC storage solutions, display products,
solutions, networking products and software licenses.
Hexaware Technologies Ltd is one of the major global information technology services
providers in India. The company is based in the United States of America and was
incorporated in 1990 by Atul Nishar. It counts among the most prominent business
process outsourcing companies as well. The information technology services and
products of Iflex Solutions Ltd are provided only to companies that deal in financial
services. As such their main clients are UBS, Banco de Chile, Citibank, Shinsei Bank
and International Monetary Fund. The prominent partners of Iflex Solutions Ltd are Sun
Microsystems, IBM, Hewlett Packard, Oracle, Intel and Microsoft.
Structure of India’s IT Industry
The IT industry has emerged as one of the most important industries in the Indian
economy contributing significantly to the growth of the economy. The IT industry of India
got a major boost from the liberalization of the Indian economy. India's software exports
have grown at an annual average rate of more than 50% since 1991. The structure of
the IT industry is quite different from other industries in the Indian economy. The IT
industry of India is hugely dependant on skilled manpower. Primarily a knowledge based
industry, the IT industry of India has reordered significant success due to the huge
availability of skilled personnel in India.
The industry structure in the IT sector has four major categories. These are -
1: IT services
2: IT enabled services
3: Software products
4: Hardware
1:- IT services
IT services constitute a major part of the IT industry of India. IT services include client,

server and web based services. Opportunities in the IT services sector exist in the areas
of consulting services, management services, internet services and application
maintenance. The major users of IT services are -
 Government
 Banking
Financial services
 Retail and distribution
 Manufacturing
2:- IT enabled services

The services which make extensive use of information and telecommunication
technologies are categorized as IT enabled services. The IT enabled services is the
most important contributor to the growth of the IT industry of India. Some of the
important services covered by the ITES sector in India are -
 Customer-interaction services including call-centres
 Back-office services
 Revenue accounting
 Data entry and data conversion
 HR services
 Transcription and translation services
 Content development and animation
 Remote education,
 Data search
 GIS
 Market research
 Network consultancy
3:- Software products

Software products are among the most highly exported products from India. The
software industry in India originated in the 1970s and grew at a significant pace in the

last ten years. Between 1996-1997 and 2002-2003, the Indian software industry grew
more than five times from 2630 carores to 13200 carores. During the same period
software and service exports from India grew by almost twelve times.
4:- Hardware
The hardware sector of the It industry focuses on the manufacturing and assembling of
computer hardware. The consumption of computer hardware is high in the domestic
market. Due to the rise in the number of IT companies, sales of desktops, laptops,
servers, routers, etc have been on the rise in recent years. Many domestic and multi-
national; companies have invested in the computer hardware market in India. Another
categorization in the structure of India's IT industry is related to the market. There are
two major market classifications - the domestic market and the export market. The
export market, dominates the IT industry accounting for 75% of the revenue.
CHALLENGES FOR INDIAN IT INDUSTRY
At present there are a number of challenges that are facing the information technology
industry of India. One of the major challenges for the Indian information technology
industry was to keep maintaining its excellent performance standards. The experts are
however of the opinion that there are certain things that need to be done in order to
make sure that India can maintain its status as one of the leading information technology
destinations of the world. The first step that needs to be taken is to create an

environment for innovation that could be carried for a long time.
The innovation needs to be done in three areas that are connected to the information
technology industry of India such as business models, ecosystems and knowledge. The
information technology sector of India also has to spread the range of its activities and
also look at the opportunities in other countries. The improvement however, also needs
to be qualitative rather than just being quantitative. The skill level of the information
technology professionals is one area that needs improvement and presents a
considerable amount of challenge before the Indian information technology industry.
The Indian information technology industry also needs to co-ordinate with the academic
circles as well as other industries in India for better performance and improved
productivity. The experts are of the opinion that the business process outsourcing
service providers in India need to change their operations to a way that is more oriented
to the knowledge process outsourcing. One of the most important crises facing the
Indian information technology industry concerns the human resources aspect. The
problems with outsourcing in countries like the United States of America are posing
problems for the Indian information technology industry as well.
In the recent times a bill has been passed in the state of New Jersey that allows only
the citizens or legal non-Americans to be given contracts. This legislation has also
affected some other states like Missouri, Connecticut, Wisconsin and Maryland. These
states are also supposed to be considering these laws and their implementation. This is
supposed to have an adverse effect on the outsourcing that is the source upon which
the information technology industry of India thrives. The information technology
professionals who aim at working in the country are also likely to be hindered by the
legislation as a significant amount of these professionals have been going to work in the
USA for a long time.
CONTRIBUTION OF INDIAN INUSTRY TO ECONOMIC PROGRESS
The contribution of India's IT industry to economic progress has been quite significant.
The rapidly expanding socio-economic infrastructure has proved to be of great use in
supporting the growth of Indian information technology industry. The flourishing Indian
economy has helped the IT sector to maintain its competitiveness in the global market.
The IT and IT enabled services industry in India has recorded a growth rate of 22.4% in
the last fiscal year. The total revenue from this sector was valued at 2.46 trillion Indian
rupees in the fiscal year 2007. Out of this figure, the domestic IT market in India

accounted for 900 billion rupees. So, the IT sector in India has played a major role in
drawing foreign funds into the domestic market.
The growth and prosperity of India's IT industry depends on some crucial factors. These
factors are as follows:
 India is home to a large number of IT professionals, who have the necessary skill and
expertise to meet the demands and expectations of the global IT industry.
 the cost of skilled Indian workforce is reasonably low compared to the developed
nations. This makes the Indian IT services highly cost efficient and this is also the
reason as to why the IT enabled services like business process outsourcing and
knowledge process outsourcing have expanded significantly in the Indian job market.
 India has a huge pool of English-speaking IT professionals. This is why the English-
speaking countries like the US and the UK depend on the Indian IT industry for
outsourcing their business processes.
The emergence of Indian information technology sector has brought about sea changes
in the Indian job market. The IT sector of India offers a host of opportunities of
employment. With IT biggies like Infosys, Cognizant, Wipro, Tata Consultancy Services,
Accenture and several other IT firms operating in some of the major Indian cities, there
is no dearth of job opportunities for the Indian software professionals. The IT enabled
sector of India absorbs a large number of graduates from general stream in the BPO and
KPO firms. All these have solved the unemployment problem of India to a great extent.
The average purchasing power of the common people of India has improved
substantially. The consumption spending has recorded an all-time high. The aggregate
demand has increased as a result. All these have improved the gross production of
goods and services in the Indian economy. So in conclusion it can be said that the
growth of India's IT industry has been instrumental in facilitating the economic progress
of India.
EXPORT POTENTIAL OF INDIAN IT INDUSTRY
The export potential of India's IT industry has been recognized by all developed nations
across the world. As per the NASSCOM-McKinsey report, IT export from India in the
year 2008 is projected to be 35% of total Indian exports. According to this report, the
products and services of IT sector will account for more than 7.5% of the total growth of
GDP in India in the 2008 fiscal. The IT and IT enabled sectors, the online businesses,
and the software products of India are renowned all over the world for their quality and
cost efficiency. With its huge growth potential, the information technology sector of India

has emerged as a preferred investment area for the IT biggies across the world. As per
the NASSCOM- McKinsey report, the IT sector of India will provide 2.2 million job
opportunities for the skilled Indian workforce by the end of 2008. The market
capitalization of the IT sector is expected to be about 225 billion US dollars by 2008.
The Government of India with the help of the IT ministry has taken all the necessary
initiatives and policy measures to facilitate software exports from India. Efforts are also
on to reach the full potential of the India's IT industry. There is no doubt that growth of
Indian software exports crucially depends on the US demand for the same.
The subprime failure in US has brought about recession in the economy of the United
States in the recent time. This slowdown of America is going to have adverse effects on
all major economies of the world. The economists and financial experts are of the
opinion that the US subprime crash and the consequent recession will not have any
major effect on the Indian IT sector. As an aftermath of financial slowdown, the US
businesses are expected to depend more and more on the Indian IT and ITES sector to
get their job done by way of outsourcing.
Owing to the easy availability of skilled workforce at a much lower rate and top quality
software product, the growth momentum of the Indian IT sector and software exports are
expected to remain more or less same in the near future. The projected growth rate is
33% for the year 2008. Software export from India is expected to account for more than
40 billion US dollars by the end of 2008 financial year. Based on the strong export
potential of India's IT industry, the volume of software exports from India is expected to
reach the US$ 60 billion target, set for the 2010 fiscal year.
FDI IN INDIA’S IT INDUSTRY
The information technology industry of India has been attracting considerable amount
of foreign direct investment in the recent years. Investments are being made in the four
principal sectors of the Indian information technology industry - online businesses,
information technology services, information technology based services and software
merchandise. Newer investment opportunities are opening up every now and then in the
Indian information technology scenario. As per the findings of the NASSCOM-McKinsey
report the Indian information technology is supposed to receive between 4 and 5 billion
United States dollars by way of foreign direct investment in the year 2008. There are

however other ways in which foreign direct investment is being made in the information
technology industry of India. A number of major information technology companies of the
world have set up shop in India trying to recruit the skilled information technology
professionals of India. One of the major advantages of this method is that the Indian
Information technology professionals are more viable from the economic point of view.
Since they are at par with the international standards as far as skills are concerned it is
pretty easy to extract good work out of them. This has however helped in the expansion
of the job market in India as an increasing number of people are landing jobs with the
international information technology companies and are living better lives. Foreign direct
investment in India's information technology industry has also been contributed to by the
remarkable growth of the industry in the recent years. The worth of the Indian
information technology industry was 150 million United States dollars in the financial
year 1991-92 and since then it has grown at an appreciable rate to be worth 5.7 billion
US dollars in the 1999-2000 fiscal. The information technology has been among the best
as far as rate of growth is concerned. This has lured the investors from all over the
world.
FUTURE OF INDIAN IT INDUSTRY
The current scenario in the IT industry of India and the tremendous growth registered in
recent years has generated much optimism about the future of the Indian Information
technology industry. Analysts are upbeat about the huge potential of growth in the
Information Technology industry in India.
The major areas of benefit that the future growth in the IT industry can generate for the
Indian economy are -
 Exports - The IT industry accounts for a major share in the exports from India. This is
expected to grow further in coming years. The information technology industry is one of

the major sources of foreign currency or India.
 Employment - The biggest benefit of the IT industry is the huge employment it

generates. For a developing country like India, with a huge population, the high rate of
employment in the IT sector is a big advantage. The IT industry is expected to generate
employment of 2.2 million by the end of 2008 which is expected to increase significantly
in coming years.
 FDI (Foreign Direct Investment) - High inflow of FDI in the IT sector is expected to
continue in coming years. The inflow of huge volumes of FDI in the IT industry of India
has not only boosted the industry but the entire Indian economy in recent years.
The Nasscom- McKinsey report on the IT industry of India projects that the Indian IT
industry will reach 87 billion US Dollars by the end of 2008. 2.2 million Employment is
expected to be created in the IT industry according to this report. The report also
projects 50 billion US Dollars of IT exports from India by the end of 2008.
Software exports from India are expected to grow in coming years. New markets for software
exports from India have opened up in the Middle East, South and Southeast Asia, Africa, and
Eastern Europe. The reputation that India has earned as a major destination for IT outsourcing
has opened further possibilities. Many developing countries are now using the Indian model for
growth in the IT sector. Another important area of future growth for the IT industry of India is
the domestic market. While exports dominate the IT industry at present, there is huge scope of
growth in the domestic market which can be tapped in the future.
The US recession has had its share of negative impacts on the Indian IT industry. However, the
industry has faced the challenges posed by the global market and is sustaining its rate of growth.
The focus for the future is to ensure that the benefits of the IT industry percolate to the
grassroot levels.
GROWTH IN INDIA’S IT INDUSTRY
India's IT industry has recorded phenomenal growth over the last decade. During the
period from 1992-2001, the compounded annual growth rate of the Indian IT services
industry has been over 50%. The software sector in India has grown at almost double
the rate of the US software sector. The statistics of the India's IT industry substantiates
the huge momentum acquired by the IT sector in the recent past. During the financial
year 2000-2001, the software industry in India accounted for $8.26 billion. The
corresponding figure was $100 million 10 years back.
As per the report of a study undertaken by NASSCOM-McKinsey, the software export
from Indian IT industry is likely to reach 50 billion US dollars in the year 2008. This
growth rate of the software sector for the year 2008 has been projected on the basis of
the 35% per year growth rate achieved in the last couple of years. Export of software

and services from India is expected to add almost 41 billion US dollars to the annual
revenue of the Indian government in the current year. The share of technology industry
in India's GDP is expected to reach 5.5% in 2008; while the corresponding figure in 1998
was as small as 1.2%.
The study of NASSCOM has revealed that the growth of India's IT industry has
prompted the growth of Indian exports by almost 36%. Another favourable effect of
India's IT boom is the expansion of opportunities of employment. By the end of fiscal
year 2008, the IT sector of India is expected to employ around 2 million skilled Indian
youths. The growth of India's IT sector has brought about many other positive changes
in the Indian economy. The purchasing power of a large section of Indian population has
increased dramatically. This has resulted in an increase in the average standard of living
of the majority of population of the country. The increase in purchasing power of the
common people has propelled the growth rate of the other sectors of the economy as
well. There has been considerable increase in the amount of fund available for venture
capitalism and equity financing. India is now home to a number of IT giants. The
operations of IT firms like Wipro, Infosys, Accenture, Capgemini, Tata Consultancy
Services and many more in different locations of India have changed the entire scenario
of the Indian job market. The ITES sector has also come up to complement the growth of
Indian IT sector.
RESEARCH PAPER
Security Analysis of the Diebold AccuVote-TS Voting Machine
Ariel J. Feldman*, J. Alex Halderman*, and Edward W. Felten,
(Center for Information Technology Policy and Dept. of Computer Science, Princeton University)
Woodrow Wilson School of Public and International Affairs, Princeton
ABSTRACT
This paper presents a fully independent security study of a Diebold AccuVote-TS

voting machine, including its hardware and software. We obtained the machine from a
private party. Analysis of the machine, in light of real election procedures, shows that it
is vulnerable to extremely serious attacks. For example, an attacker who gets physical
access to a machine or its removable memory card for as little as one minute could

install malicious code; malicious code on a machine could steal votes undetectably,
modifying all records, logs, and counters to be consistent with the fraudulent vote count
it creates. An attacker could also create malicious code that spreads automatically and
silently from machine to machine during normal election activities—a voting-machine
virus. We have constructed working demonstrations of these attacks in our lab.
Mitigating these threats will require changes to the voting machine’s hardware and
software and the adoption of more rigorous election procedures
CONCLUSION
From a computer security standpoint, DREs have much in common with desktop
PCs. Both suffer from many of the same security and reliability problems, including
bugs, crashes, malicious software, and data tampering. Despite years of research and
enormous investment, PCs remain vulnerable to these problems, so it is doubtful,
unfortunately, that DRE vendors will be able to overcome them. Nevertheless, the
practical question facing public officials is whether DREs provide better security than
other election technologies, which have their own history of failure and fraud. DREs may
resist small-scale fraud as well as, or better than, older voting technologies; but DREs
are much more vulnerable to large-scale fraud. Attacks on DREs can spread virally,

they can be injected far in advance and lurk passively until election day, and they can
alter logs to cover their tracks. Procedures designed to control small-scale fraud are no
longer sufficient—DREs demand new safeguards. Electronic voting machines have their
advantages, but experience with the AccuVote-TS and other paperless DREs shows
that they are prone to very serious vulnerabilities. Making them safe, given the
limitations of today’s technology, will require safeguards beginning with software-
independent design and truly independent security evaluation.
SWOT ANALYSIS OF THE COMPANY:
Strengths
 High quality and value for money proposition
 Skilled and knowledgeable, English speaking work force
 Flexibility in operations
 Successful offshore model
 Experience in working on large projects
 Global delivery model
 Large employee base
 Strong R&D
 Global R&D facility.

 Retention of the man-power is the best in the industry.

 Impressive list of clientele.
 Relatively lower receivable compared to the industry average
Weakness
 High reliance on foreign markets
 Lack of significant presence African market
 Inadequate PC penetration levels that has resulted in a smaller domestic
Market
 Lack of original product goodwill in the market
Inadequate marketing skills
Opportunities
 Increasing IT professionals despite the ensuing slowdown
 Rapid proliferation of the Internet in the domestic and global markets
 Shift in the business model from the brickn- mortar to the click-n-mortar
one
 Shift in the global markets from legacy systems to more of web-based
systems
 Indian government’s thrust towards increased computerization of offices,
banks etc
 Global outsourcing market is all set to boom (especially under the
current circumstances)
 IT enabled services in the country and across the globe is forecasted to
explode
 Shift in focus towards other markets such as Europe, Japan, Australia etc
 Innovation of latest technology
 Increasing no of SEZ and STP.
 It sector booming.
 In the branded product category.
 In the consultancy area.
 In the emerging technology areas like Blue Tooth, WAP etc.
Threats
 Telecom infrastructure is relatively poor when compared to other global
markets
 Other infrastructure problems such as power, lack of commercial space in
India.
 Government policies could change and result in greater interference
 China, Ireland, Philippines etc are fast catching up
 Protectionist measures by other countries

 Complacent attitude by domestic the management and employes.
 Emerging IT companies
 Diversification of other multinational companies which is unrelated
 Increasing cost of human capital.

 Slowdown in the US economy.
FINANCIAL COMMENTS ON CONSOLIDATED OPERATIONS

FOR THE YEAR ENDED JUNE 30, 2008
CONSOLIDATED FINANCIAL PERFORMANCE
The Management’s Discussion and Analysis on Financial Statements and Segment

Performance given below should be read in conjunction with the Financial Statements and
related notes for the year ended June 30, 2008.

Gross Business Income
Connsolidated Revenue for the year grew by 6% to Rs. 12605 crores in financial year ended
2008 from Rs. 11855 crores in financial year ended 2007.
Services revenue grew by 35% from Rs. 360 crores to Rs. 485 crores in the current year.
The Compounded Annual Growth Rate (CAGR) for the preceding five years is 30%.
Gross Margins
Gross margins for the current year grew to Rs. 1054 crores (8.4% of sales) from Rs. 876 crores
(7.4% of sales) in the previous year.
Segment Highlights

Segment Results

Business Highlights
Overall Company QoQ Revenue Growth Rate %

12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
Mar'09 Jun'09 Sep'09 Dec'09 Mar'10
IT Services QoQ Revenue Growth Rate %

16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
Mar'09 Jun'09 Sep'09 Dec'09 Mar'10

A critical analysis of past studies
conducted
HCL Infrastructure Services Division Cited as a ‘LEADER’ in Global IT

Infrastructure Outsourcing Vendor Evaluation Study Q2 2007 by an
Independent Research Firm

Receives solid scores in “Current offering,” “Strategy” and Reference customer criteria
Sunnyvale, CA - June 15, 2007: In a report by Forrester Research Inc., an independent

research firm, HCL Technologies, Infrastructure Services Division (HCL ISD), TM has
been cited as a ‘Leader’ in the report titled “Forrester W ave Global IT Infrastructure
Outsourcing, Q2 2007 (June 2007).” HCL was among the select companies that
Forrester invited to participate in this study, which evaluated leading global IT
infrastructure outsourcing service providers (Indian and MNC players) across 31 criteria,
including reference customer surveys.
The Report evaluated HCL’s capability and cited the company as a ‘Leader’ in this
space, which consists of 18 other service providers. HCL earned solid scores for
‘Strategy,” ‘current offering’ and reference customer criteria. Specifically, on a scale of
0 to 5 (5 equals strong), reference HCL customers rated HCL as a 4.5 for
implementation, 4.29 for account management, 4.11 for service quality, and 4.06 for
general satisfaction.
HCL also received the highest score (5) on criteria, such as data center management
services, managed network services and infrastructure management revenue growth.
“HCL has multiple delivery sites in India as well as in other locations, and it
distinguished itself against many players by more targeted strategic focus on
infrastructure management and its growing service market presence. The firm is also
positioning for future strength in the infrastructure business. HCL has been
experiencing tremendous growth — approximately 80% CAGR — over the past two
years, and in addition to organic growth, the provider is pursuing an acquisition phase to
grow its infrastructure management business,” the report stated.
Commenting on the findings of this latest report, Anant Gupta, COO, HCL
Infrastructure Services Division, said, “Our success in the global IT Infrastructure
Outsourcing vendor assessment in a span of 5 years is an apt reflection of the
worldwide acceptance of our transformational value proposition. Our strategic focus in
infrastructure services is a key differentiator and reinforces our strong vision for the
future of utility based infrastructure management in a multi provider environment. Our
proposition of “co-sourcing” model of delivery resonates well with our customers which
is reflected in our impressive scores in general satisfaction of our customers.”
In another vendor evaluation, “The Forrester W ave Global Delivery Infrastructure

Management for Europe, Q4 2006 (December 2006),” HCL ISD was cited as a ‘leader’
among the seven Indian Players who were assessed in the study.

HCL is widely acknowledged as a pioneer and leader in the global delivery of
Infrastructure Management. The company was ranked as the No.1 ‘Specialty Offshore
Infrastructure Services Provider’ by NeoIT and Managing Offshore magazine and has
also been ranked as No. 2 in the world in IT Infrastructure Services by the Global
Services 100 Survey. Today, HCL services 11 G100 customers and 30+ G 500
customers.
Forward Looking Statem ents

fixed-price, fixed-time frame contracts, client concentration, restrictions on
immigration, our ability to manage our international operations, reduced demand for
technology in our key focus areas, disruptions in telecommunication networks, our
ability to successfully complete and integrate potential acquisitions, liability for damages
on our service contracts, the success of the companies/ entities in which we have made
unauthorized use of our intellectual property and general economic conditions affecting
our industry. The company does not undertake to update any forward-looking statement
that may be made from time to time by or on behalf of the company.
Product Innovation and Engineering :

Last year, your Company had witnessed significant growth in its line of products. The
company introduced a series of new products for its Server, Desktop, Workstation,

Notebook, Thinclients, POS ranges of systems under various brands like Infiniti Global
Line, Infiniti Xcel Line, NetManager, Infiniti Challenger, Infiniti Pro, Infiniti Orbital,
Beanstalk, Busybee, Ezeebee, Infiniti Powerlite and BeePOS.
Keeping its promise & heritage of always being the first to introduce the latest in
technology for Indian markets at an affordable price, your company, in January
launched MiLeap series, India’s first full functional, ultra portable range of laptops that
offer true mobile internet computing experience at a price point starting from
Rs.13,990/-.
HCL Labs designed and released the ultra portable range of MiLeap series which is fully
RoHS compliant with low energy footprint design. HCL also added new products to the
small and medium enterprise segment with the launch of its next generation ‘HCL–
Datacenter in a Box’. This offers Simplified IT Infrastructure solution with power-packed
Blade Servers in one system that Integrates storage, computing and networking. This
integrated solution is not only easy to deploy, maintain and upgrade but is also very cost
effective and delivers exceptional value.
HCL has launched NetEdge Box which replaces network access controlled devices,
network security devices, routers, ip PBX etc. This is an innovative and unique
breakthrough in technology and can be easily configured by anyone, having software
skill is not at all mandatory.
A full range of server products featuring 45nm technology CPU both in 1way & 2way
server products were launched by your company.
New technology like space saving 2.5” SAS hard disk drive with storage bay, PCIGen 2
expansion slot and ISMS 2.0 management software powered by Microsoft System
Centre Essentials released.
Under Green computing initiative, as a market leader, HCL has come out once again
with new environment friendly desktop computers called ES series consuming very low
power and meeting Energy Star 4.0 requirements. HCL’s new eco friendly range of PC’s
featuring the latest in technology smart power converter circuit which consumes 20 to
25% less power.
Under display product range, new TFT monitor series was launched with TCO’03
certification.
To take care of end user safety and to meet international standards, HCL released a
complete range of UL® certified desktop, notebook & server products. The company
also launched HCL Busybee Content player targeting digital signage applications thus
creating a new market segment.

HCL has developed encryption software that will compress encrypted files and folders
with password protection. HCL has also released a hard disk eraser and wipe tool that
enables permanent deletion of the required confidential information from your PC, thus
safeguarding any misuse of information & non-recovery at any time later.
HCL has also developed a multifunction lock. This device enables a person to restrict
access to the PC. It defines and restricts access to certain applications/ internet as
required by the specific user.
Technology absorption, adaptation and innovation

HCL also unveiled its new Quad-Socket HCL High-End Enterprise server IGL 4700 FC
based on Intel’s latest 7300series of Quad core Xeon MP Processors. The new server

packs extreme performance in a dense package, with 16 computing cores in a mere 7-
inch (4U) form factor that delivers significantly higher performance. HCL has also
released Ubruntum Linux on HCL systems giving customer an option for the latest open
standards.
HCL released SantaRosa refresh platform based notebooks under the HCL Leaptop
range. These notebooks supportnext generation Intel Core 2 Duo processors
manufactured using 45nm technology. These new notebooks are poweredwith CPU’s
offering higher cache memory providing higher-performance, more efficient cache
subsystem and optimized for multi threaded applications.
HCL launched Professional Workstation 2008 Series for MCAD and DCC Professionals.
Based on New Intel Platform, Core Micro architecture Processors and next generation
Nvidia Quadro FX370, the new workstation takes application performance to new levels
by featuring industry’s first unified architecture. The workstation is specifically designed
and targeted towards professionals in the field of digital content creation, Mechanical
computer aided design.
HCL has also launched GPS ready PC’s enabling customers to use their PC as a
navigation device. Further, our R&D has developed a smart card reader/writer solution
which has enabled it to address voice SC solutions with ease.
R&D has designed and developed a Biometric Attendance solution which could prove to
be very effective for any enterprise. This finger print Biometric Reader can integrate
various applications seamlessly like ERP, Web enabled applications and Citrix based
applications thereby making it possible for potential end customers to bring in biometric
attendance into their IT systems at application level.
HCL continues to maintain its leadership in the client space with the development and
release of new products based on the latest technology. The release of new technology
by HCL has been witnessed by many. We aim to deliver superior value to customers on
the CPU front. We have seen the launch of CPU and chipset that consumes lesser
power based on new micro architecture. Also seen was the launch of the latest memory
technology which is both faster and has lower power consumption.
HCL continues to maintain itself to be a leader by releasing new products based on new
technology and at the same time on their Global launched sites. It is an advantage for
many customers as they can enjoy the latest in technology.

SCOPES OF FURTHER
STUDY
SCOPE OF FURTHER STUDIES AND RESEARCHES

As we have seen in modern scenario that computer hacking is continuously
increasing. Data of one computer can be easily stolen by hacking the computer of any
other individual or the security personal it is very important for the researchers to

conduct studies on this issue. Either such type of passwords should be made which
cannot be broken easily or if there is any entry of other unauthorised person in the
computer then the owner should be aware about this by any E-mail or with the help of a
contact number.
As the global market is now shrinking its boundaries whole world is now becoming a
single market from the review of the above literature we have found that presence of Wipro in
African is in very small proportion. Wipro has only one office in the African market so there are
opportunities for Wipro that it can start its research and development activities in the African
market to understand the market potential in the area as this market is still not too much
developed and so the opportunities can be found to establish his offices to get the advantage of
first entry in the market.
Wipro can start research to improve its presence from the European market as the revenue
generation of Wipro is only between 20% to 25% between 2005 to 2009 and if we talk about the
USA, company has about 50% of its total revenue but Europe has about 28 countries still the
total revenue is less than USA. Study can be conducted to know the reason of low revenue
generation from the Europe and to improve the condition of revenue generation.
Wipro has a very good application software base and the software which can integrate
the business but further studies can be conducted to make software like SOA (service
oriented architecture) which has recently developed by IBM to integrate the business
more as comparison to recent time.
Wipro can diversify itself into palmtop market as this market is increasing and laptop
and desktop market is now becoming outdated. It will help Wipro in sustaining in the
competition with other companies in the international market.
Studies could be conducted to know the reason of low growth rate figure in 2008-2009
from India while there was not too much impact of US recession still revenue generation
have gone down up to 313.01%.
Revenue generation of the company is continuously decreasing from the Europe in the
sense of Growth rate while maximum revenue is coming from the Europe and it is
making a very bad impact on the overall growth rate of revenue of the company
because it is decreasing continuously in 2005-06 growth rate was 59.77%, 2006-2007 it
was 40.81%, 2007-08 it was 32.12%, 2008-09 it was 28.94%. Europe consists of about
23% of the total revenue of the company in different years from 2005 to 2009. In 2005-
06 the growth rate of revenue from Europe was 46%, 2006-07 it was 52%, 2007-08 it
was 30% 2008-09 it was 10.34%. So the market research could be conducted to know
the reason of continuously decreasing growth rate figure of revenue from European
market.
Press Releases 2010

HCL Technologies Signs Five-Year, Strategic Engagement Agreement With MSD

One of the Largest Strategic Engagements in HCL History Will Help Facilitate MSD's Growth Across
Global Markets; HCL to Add Jobs In North Carolina To Support Project
NOIDA, INDIA - MAY 04, 2010– HCL Technologies Ltd. (HCL), a leading global IT services provider, today
announced it has signed a five-year, $500 million strategic engagement with MSD (also known as Merck
& Co., Inc. with headquarters in Whitehouse Station, NJ, USA), a global research-driven pharmaceutical
company.
HCL will extend its existing relationship with MSD, dating back to 2004, to become an integral business &
technology services partner and provide a multitude of services including software-led IT solutions,
remote infrastructure management, engineering and business and knowledge process services.
"“For five years, MSD has leveraged HCL’s extensive expertise in life sciences and healthcare to
streamline operational efficiencies and consolidate its IT portfolio,” said Richard G. Branton, Vice
President of Application Services, MSD. "As we continue to leverage global delivery services to meet our
business imperatives, we have chosen HCL as our strategic partner for its depth of technology and
pharmaceutical domain experience, coupled with its flexibility to engage and a commitment to deliver.”
"This is a landmark win for HCL, and we are proud that our growing leadership in pharmaceutical and
healthcare, coupled with our previous delivery for MSD has positioned HCL as a strategic partner for
MSD,” said Shami Khorana, president HCL Americas. “We are committed to creating transformational
value for MSD in this engagement and we look forward to playing a key role in the organization’s growth
across global markets."
"MSD will leverage HCL's near-shore delivery network in the U.S. comprised of its operations center in
Raleigh, North Carolina and its global data center delivery ecosystem, powered by its partner footprints
across the globe. As a result of this engagement, HCL will expand its U.S. team in North Carolina, relying
on local hires to staff projects, thus creating jobs for the local community. In total, HCL will deliver
services out of 20 worldwide locations including USA, Poland, China and Brazil.
Forward-looking Statements
Certain statements in this release are forward-looking statements, which involve a number of risks,
uncertainties, assumptions and other factors that could cause actual results to differ materially from those

in such forward-looking statements. All statements, other than statements of historical fact are statements
that could be deemed forward looking statements, including but not limited to the statements containing
the words 'planned', 'expects', 'believes', 'strategy', 'opportunity', 'anticipates', 'hopes' or other similar
words. The risks and uncertainties relating to these statements include, but are not limited to, risks and
uncertainties regarding impact of pending regulatory proceedings, fluctuations in earnings, our ability to
manage growth, intense competition in IT services, Business Process Outsourcing and consulting
services including those factors which may affect our cost advantage, wage increases in India, customer
acceptances of our services, products and fee structures, our ability to attract and retain highly skilled
professionals, our ability to integrate acquired assets in a cost effective and timely manner, time and cost
overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our
ability to manage our international operations, reduced demand for technology in our key focus areas,
disruptions in telecommunication networks, our ability to successfully complete and integrate potential
acquisitions, the success of our brand development efforts, liability for damages on our service contracts,
the success of the companies / entities in which we have made strategic investments, withdrawal of
governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring
companies outside India, and unauthorized use of our intellectual property, other risks, uncertainties and
general economic conditions affecting our industry. There can be no assurance that the forward looking
statements made herein will prove to be accurate, and issuance of such forward looking statements
should not be regarded as a representation by the Company, or any other person, that the objective and
plans of the Company will be achieved. All forward looking statements made herein are based on
information presently available to the management of the Company and the Company does not undertake
to update any forward-looking statement that may be made from time to time by or on behalf of the
Company
HCL Technologies enhances capabilities to address global Insurance market
Steps up engagement with LOMA
New Delhi, November 25, 2003 -- HCL Technologies Ltd (HCLT), a leading global IT

and technology services provider, today announced that it has stepped up its
engagement with LOMA, an International Insurance Research Organization for
Professional Development, to enhance its already significant Insurance practice.
Currently, HCLT provides diverse technology and business solutions to the Insurance
Industry, servicing the requirements of leading insurance clients across the globe.
This engagement now gives HCLT access to LOMA’s latest industry research,
publications,
and training/certification programs to facilitate the growth of domain skills, further
enabling HCLT to offer highly focused software solutions for the Insurance Industry.
LOMA is an international association through which more than 1,250 insurance and
financial services companies from over 60 countries engage in research and
educational activities to improve company operations. Members are involved in life and
health insurance, managed care, annuities, pensions, banking, bancassurance,
securities, and other financial services areas.
Allison Middleton, AVP, LOMA on her maiden visit to the HCLT facility at Chennai, said,
“We are delighted to count HCL Technologies as an active member of LOMA. We share
a
common goal: Operational Improvement of the Financial Services Industry.”
HCLT’s Insurance Practice offers business solutions to Insurers worldwide, operating in

the Life & Annuities, Property & Casualty, Health and Reinsurance segments.
Welcoming the deepening engagement with LOMA, Dan Morris, Vice President, Global
Insurance Practice, HCLT, said “We are very proud to be affiliated with LOMA, and
support their mission to bring operational improvements to insurance companies
through research and education. We continue to invest in research and training to
improve and constantly update our skill set to deliver advanced software solutions to our
clients in this specialized sector.
HCLT is perhaps the only Indian professional services provider with online testing
centers
for both Life and Non-Life Insurance Certifications. Leveraging this, and the training
programs of LOMA, we are certifying 30% of our Insurance Practice workforce so that
we may contribute in a greater way to the success of our clients.”

Forward Looking Statements
fixed-price, fixed-time frame contracts, client
concentration, restrictions on immigration, our ability to manage our international
operations, reduced demand for technology in our key focus areas, disruptions in
telecommunication networks, our ability to successfully complete and integrate potential
acquisitions, liability for damages on our service contracts, the success of the
companies/ entities in which we have made strategic investments, withdrawal of
governmental fiscal incentives, political instability, legal restrictions on raising capital or
acquiring companies outside India, and unauthorized use of our intellectual property
and general economic conditions affecting our industry. The company does not
undertake to update any forward-looking statement that may be made from time to time
by or on behalf of the company.
RESEARCH METHODOLOGY
Title of Study
The title of the study is “ International Marketing Strategy of HCL”.

According to the title the research problem is “What are marketing strategy & sales
promotion techniques of HCL for retailers in market”.
Type of Research
Exploratory Because I am this research I am exploring the strategies of company.
Object of the work
Use of computers has increased tremendously in India. Every age of group like it, now
days it become a household necessary item. In field of marketing many kind of surveys
are conducted by HCL team time to time. This is end & last feedback for any kind of
organization. By the specific survey, which was conducted by HCL infosystem want to
know about the right picture of market of Allahabad region? This work study provides
extensive information about the position of company’s brand in International market .
FINDINGS & LIMITATIONS

Every project has some limitations even the researcher came across some limitations
while working on the project which made the analysis a little inappropriate at times.
Some of the basic limitations faced during the research are listed below:

Only limited number of government organization and banks where it has been found 50
players was covered in the study.
•Most of the research was based on cold calls.
•There was a bias on the part of the respondents.
•The research is based on International market.
At the time of research several time most of the Administrative officers were not present
in their departments.
• At the time of research most of the administrative officers did not sincerely respond to
the researcher.

CONCLUSION
CONCLUSION
In the end it can be said that Information technology of India contributes to a
significant GDP (Gross Domestic Product) which is about 7.5% of the total GDP. As it
was 60billion in 2009 and is expected to increase up to 225 billion up to 2025. As Wipro

is the first company operating its business from India, it contributes maximum amount of
this GDP share of Information Technology.
Basically Wipro is a leading global IT services company. Wipro also provide
outsourced research and development, infrastructure outsourcing and business
consulting services. Wipro have been acknowledged among leading offshore providers
of technology services by Gartner Inc, Forrester Research Inc and other leading
research and advisory firms. In April 2009, Forrester ranked Wipro as the leader in
Global IT Infrastructure Outsourcing services based on an evaluation of various criteria
including client references. Wipro provide a comprehensive range of IT services,
software solutions, IT consulting, business process outsourcing, or BPO, services and
research and development services in the areas of hardware and software design to
leading companies worldwide. Wipro is the world’s largest third-party manufacturer of
hydraulic cylinders. Wipro focus on mobile construction equipment business and believe
the growth of this business is linked to the growth of infrastructure spending in India.
Wipro manufacture and sell cylinders and truck hydraulics, and Wipro also distribute
hydraulic steering equipment and pumps, motors and valves for international
companies. In 1990, Wipro formed a joint venture with General Electric called Wipro GE
Medical Systems Private Limited to learn new technologies and management processes
from world class companies like General Electric and to enter new markets. General
Electric currently holds 51% of the equity in the joint venture and Wipro hold 49%.
Company has also diversified itself into personal care products like soaps & toiletries
and lightning.
The growth of any organization largely depends on the diversification because it
minimises the risk of the company and Wipro is doing it very well.
BIBLIOGRAPHY

www.google.com
www.wikipedia.com
www.hcl.in
www.hclinfosystems.in
www.infosys.com
Annual report of HCL

HCL's Global Growth Through Strategic Acquisitions

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Vinay Pratap Singh, 2008PIB093

Vinay Pratap Singh, 2008PIB093

This dissertation report is basically concerned with the international marketing

 To know the international marketing strategy of HCL.

 To know the motive behind internationalization strategy.

Vinay Pratap Singh, 2008PIB093

 To know about the risk related to company and industry.

 To know the competitive strength of HCL.

 To know the Information technology of India.

Vinay Pratap Singh, 2008PIB093

Vinay Pratap Singh, 2008PIB093

Vinay Pratap Singh, 2008PIB093

Vinay Pratap Singh, 2008PIB093

 International marketing, where the marketing activities of an organisation

Vinay Pratap Singh, 2008PIB093

Vinay Pratap Singh, 2008PIB093

Vinay Pratap Singh, 2008PIB093

Vinay Pratap Singh, 2008PIB093

MAIN MOTIVE FOR INTERNATIONALIZATION STRATEGIES

Vinay Pratap Singh, 2008PIB093

Vinay Pratap Singh, 2008PIB093

 Preparation for project proposals

Vinay Pratap Singh, 2008PIB093

 Procurement and rewarehousing certificates

Vinay Pratap Singh, 2008PIB093

Size of India’s IT Industry

1995-1996 - 1224 million US Dollars

Vinay Pratap Singh, 2008PIB093

The Company commissioned its second state-of-the-art manufacturing facility at

Vinay Pratap Singh, 2008PIB093

Vinay Pratap Singh, 2008PIB093

Vinay Pratap Singh, 2008PIB093

Vinay Pratap Singh, 2008PIB093

Vinay Pratap Singh, 2008PIB093

Whole-time Director & Chief Operating Officer

CHIEF FINANCIAL OFFICER Sandeep Kanwar

COMPANY SECRETARY Sushil Kumar Jain

AUDITORS Price Waterhouse, Gurgaon

BANKERS State Bank of India

HDFC Bank Ltd.

ICICI Bank Ltd.

Standard Chartered Bank

State Bank of Patiala

State Bank of Saurashtra

The Hongkong and Shanghai Banking Corporation Limited

Vinay Pratap Singh, 2008PIB093

96, Nehru Place, New Delhi - 110 019.

E - 4, 5, 6, Sector XI, Noida - 201 301 (U.P.)

WORKS • R.S. Nos: 34/4 to 34/7 and part of 34/1, Sedarapet,

Puducherry - 605 111.

• R.S. Nos: 107/5, 6 & 7, Main Road,

Sedarapet, Puducherry - 605 111.

• Plot No 78, South Phase, Ambattur Industrial Estate,

Chennai - 600 058.

• Plot No SPL. A2, Thattanchavadi, Industrial Area,

Puducherry - 605 009.

• Plot Nos. 1, 2, 27 & 28, Sector 5, 11E,

Rudrapur, Distt. - Udham Singh Nagar, Uttarakhand - 263

Vinay Pratap Singh, 2008PIB093

Vinay Pratap Singh, 2008PIB093

HCL TECHNOLOGY HCL INFOSYSTEM

Vinay Pratap Singh, 2008PIB093