This document summarizes HCL Technologies' response to ensuring employee safety after the 2011 Japan earthquake and tsunami. It discusses how HCL is monitoring the situation closely and working with customers to provide employees options such as working from home, relocating to alternate locations, or taking leave to spend time with families. Around 70% of HCL's staff and their families were evacuated from Japan after the disaster. HCL continues to support Japan during this difficult time.
1. Declaration
I hereby declare that the project work entitled “Environment of HCL Technology” submitted to the Your
Collage is a record of an original work done by me under the guidance of “Mrs. J.K. Alluwalia , teacher
of Business studies and The results embodied in this report have not been submitted to any other
University or Institute for the award of any degree or diploma.
Acknowledgement
I owe a great many thanks to a great many people who helped and supported me during the writing of
this report.
My deepest thanks to the Mrs. J.K. Alluwalia Guide of the Project for guiding and correcting various
documents of mine with attention and care. He supported to me by showing different method of
information collection about the company. He helped all time when we needed and he gave right
direction toward completion of project.
I would also thank my Institution and my faculty members without whom this project would have been
a distant reality.
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Introduction of Project
This project allotted by Mrs. J.K. Alluwalia in subject of Business environment. This project is based on
“HCL Technology’s” environment study. In this project I searched “HCL technology’s” environment
through various medium. I collected information by different sources. In this report I included some
news paper cutting and their analysis.
This project is all about of “HCL Technology” environment and news impact of company’s environment.
Table of Content
1. Introduction of company ……………………………………. 8
2. Vision, Mission, Board of director ………………………….. 9
3. Financial highlight ………………………………………….. 10
4. News and Impact…………………………………….. .12
5. Bibliography…………………………………………... 29
6. Conclusion……………………………………………. 30
Introduction of Company
2. HCL Technologies is a leading global IT services company, it is a part of HCL ( Hindustan Computers
Limited ) which was started in 1976 in India It has two business enterprises in India. HCL Technology and
HCL Info system.
HCL Technologies is a global IT Services company headquartered in Noida, India and led by its CEO
Vineet Nayar. It is the IT services arm of HCL, a US$5 billion global Technology and IT Enterprise. The
company is listed on the National Stock Exchange and Bombay Stock Exchange of India. The HCL team
comprises over 72,000 professionals of diverse nationalities, who operate from 26 countries including
over 500 points of presence in India. HCL has global partnerships with several leading Fortune 1000
firms, including leading IT and Technology firms.
It is a publicly traded IT service provider company. It is engaged in providing software-IT solutions,
remote infrastructure management services and business process outsourcing (BPO). The company
operates in the IT and ITES industry sectors. HCL delivers solutions in selected verticals, including
financial services, retail and consumer, life sciences and healthcare, hi-tech, telecom, and media and
entertainment.
Vision- Together we created the enterprises of tomorrow.
Mission –To provide world class information technology solution and service to enable our customer to
serve their customer batter.
2
Board of director-
1. SHIV NADAR
Founder - HCL
Chairman & Chief Strategy Officer
2. VINEET NAYAR
Vice Chairman & CEO,
3. SUBROTO BHATTACHARYA
Director
Financial Highlights
In year 2010 -
o Annual revenues at Rs. 12,565 Cr; up 18.6%
o Net Income at Rs. 1,303 Cr.
o Q4 revenues at Rs. 3,425 Cr; up 11.4%
o Net Income at Rs. 342 Cr.
Highlights for the Quarter (US$) : Q4’ 2010-
3. o Revenue at US$ 738 mn; up 21.5% YoY and up 7.7% sequentially.
o EBIT at US$ 113 mn, up 3.3% YoY and up 2.0% sequentially.
o Net Income at US$ 74 mn, up 6.9% YoY and down 4.0% sequentially.
o Net headcount additions of 6,428 made taking total headcount to 64,557
3
Highlights for the Year (US$) : FY 2009-10-
o Revenue at US$ 2,705 mn; up 24.1% YoY
o EBIT at US$ 446 mn, up 16.5% YoY
o Net Income at US$ 281 mn, up 6.1% YoY
o Net headcount additions of 10,341 (10,917 in IT Services) made taking total headcount to 64,557
News and Impact
1. Enable Young Employees
Friday, March 25, 2011
Source: BusinessWeek.com
News-
In this news Mr.Vineet Nayar CEO of HCL Tech. said - I recently reviewed a survey of chief executive
officers about talent development, which confirmed my suspicion that most organizational leaders have
lost touch with how to effectively manage and motivate their increasingly younger workforces.
Today, 50 percent of the world’s population is younger than 25. The organizational structures in place
today are not meant for this demographic.
Generation Y workers have grown up as digital natives in an interconnected world. Consequently,
people-management strategies must adapt so that they look more like Face book and less like pyramids
of hierarchy.
He gave 5 principal -
- Lead through inspiration, Recreate the human element, Put employees first, Become an
effective enabler, Push the transparency envelope.
4. 4
Impact -
HCL Technology’s internal environment effects by this news because in this news Mr. Vineet on how
younger employees require different incentives.So young employees will motivated by knowing that our
CEO knows about needs because after recession employee trust of management is at an all-time low.
External environment also affected by this news because it increases more value of company as others
will know that he is working for employee development & satisfaction through such type research.
2. We are employees-first co: HCL CEO
Saturday, February 19, 2011
Source: Times of India
News-
In a interview of Times of India Mr.Vineet Nayar said that we believe that it was important for us to
reward our employees first because we are an “employees-first company” and that's what we do and
did. At the same time, it was important for us because we were seeing a huge amount of volume of
business getting transacted to hire lots of laterals and the related stuff.
This is because our utilization went down and our sales and marketing expenditure went up and our cost
for resource went up. I believe with the volumes coming in, we will be able to earn back the margin
which we lost. It will be not very difficult to achieve.
Impact -
This interview also affects company’s internal environment because when he said that we are an
“employee first Customer second ” than its employee will feel more safe . Amount of employee
support will increase so its productivity will also increase because it has big human recourse. Company
value or Brand image will also increase.
3. HCL MBA M-Price
March, 14, 2011
Sunnyvale, Calif.
News-
The Management Innovation exchange (MIX), an open innovation project aimed at reinventing
management for the 21st century and HCL Technologies,today announced its judges panel for the
world’s first MBA contest for management innovation, HCL MBA M-Prize. The HCL MBA M-Prize will
honor the best new idea for making organizations more adaptable, more innovative, more inspiring and
more socially accountable.
6. 6
News –
HCL Technologies Ltd. (HCL), a leading global IT services provider, today launched ACTIVE CARE
EXCELLENCE (ACE) SmartCare Clinical Decision Support solution at the HiMSS Conference in Orlando.
SmartCare is a highly customizable mobile device-enabled solution featuring unified messaging through
voice, data alerts and notifications across clinical settings. The ACE Solution Suite utilizes a predictive
analytics model to generate configurable alerts, responses, escalations mechanisms and dashboards to
help Providers maintain compliance. In addition, a plug in to an EMR clinical IT system through
SmartCare improves Providers timely delivery of care.
Impact- ACE smart care is a innovative clinical decision support solution which will affect company’s
business environment because this will increase company’s revenue so company financial position will
increase.
6. HCL Technologies tie-up with Orian Edutech
Mar 8
Mumbai,
HCL Technologies announced a tie-up with BPO training institute, Orion Edutech.
Orion Edutech is a reputed organization with an ISO Certification in the training and education industry.
Orion is a member of NASSCOM, and is authorized to conduct the NASSCOM Assessment of
Competence (NAC), an industry Assessment Standard for creating 'assessed and benchmarked' quality
talent pool, a release said.
Impact-
HCL tie up with Orion Edutech will affect company’s internal environment and technical environment.
HCL get benefitted by this tie up because from this tie ups HCL Tech. will recruit more talented person so
they can save their time which was using in employee training.
Technical environment also affected because talented employee create better working environment.
7. HCL Technologies launches CataLOG
Feb 18, 2011
News –
HCL Technologies has announced the launch of CataLOG, a non-stop supply chain platform.
CataLOG is a web-based platform that can be seamlessly accessed by users across the world. The
solution ensures a high degree of visibility and transparency into operations as demanded by customers,
by leveraging the benefits of a hosted offering along with flexible billing and pricing models.
The company made this announcement after the trading hours on 18 February 2011.
7. Impact- Catalog will is a non-stop supply chain platform and it will provide more facility to customer
company sells will increase It will also increase customers satisfaction. We can say that Catalog ill affect
technical as well as economical environment.
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8. HCL Tech Q2 net jumps 34.2%
Jan 19, 2011,
New Delhi
News-
Software exporter HCL Technologies reported a 34.2% jump in net income to Rs 399.70 crore for the
quarter ended December 31, 2010.
The company had posted a net income of Rs 297.7 crore in the October-December quarter last fiscal,
HCL Technologies said in a statement.
HCL Technologies has also declared a dividend of Rs 2 per share.
"The dynamic demand environment necessitates a sharp focus on innovation and tangible value
generation for customers. We continued to register impressive win ratios and superior customer
acquisitions with 50 plus transformational deals signed during the year," HCL Tech Vice Chairman & CEO
Vineet Nayar said.
The company added 2,049 employees on a net basis in the said quarter, and made 8,379 gross additions,
taking its total strength to 72,267.
Bolstered by the smart quarter numbers, shares of HCL Tech zoomed by 5.93% to hit a year's high of Rs
517.50 a piece in early trade on BSE.
Impact —
This news show company’s net income or we can say that financial position of the year. By this
news we can understand the earning of company and performance of company. This is directly affected
to internal environment and external environment because by reading this news its share holder will be
confidante that their company making profit.
9. HCL Tech will be a utility company by 2015
Jan 21, 2011
News-
In a interview Vineet Nayar said
I think it's good for the industry. But we should not fall in the trap of bigger is better. In India, there
are a lot of small companies which are doing better. Consolidation is good if it adds value to you. We will
also follow the inorganic route to expansion as part of our 2015 vision. Several big deals are signed by
our side. Never before have been so many tailwinds behind us. The customers are very focused on
8. saving costs, and that is the reason you are seeing 9% quarterly growth in infrastructure and application
services.
What is the learning out of three years of hedging losses?
I feel relieved. I can breathe again. The big learning is that one should not predict the market. We were
in a market with AC current, but we are looking for a DC pattern in it and even placed our bets on it.
(HCL hedged 40-41 to a dollar for three years). One should go with the flow, like a boxer does. One
should not draw straight lines trying to predict, especially forex markets.
What's your vision for HCL Tech for 2015?
We will become a utility company by 2015. We will not be a services company in the form and shape
you see us today. We would evolve our offering into software on demand, or on cloud platform model,
of course with lots of intellectual property.
8
Impact-
In this interview Mr. Vineet Nayar Show company’s future planning and strategy for working in opposite
situation or all about company’s vision for 2015. It will affected company’s external environment
because this shows that this is a right company for fulfillment of customers demands. It will impact on
competition.
10) HCL on Japan crisis
March 16, 2010
News-
HCL Technologies is deeply saddened by the natural calamity and loss of lives in Japan and offers its
heartfelt prayers and support to this resilient nation.
The company continues to keep a close watch on the situation and is in touch with all diplomatic and
related agencies to ensure the safety and security of its employees in Japan. Currently all HCL employees
on ground there are safe. The HCL senior leadership is in touch with the leadership team in Japan and
monitoring the situation closely.
Meanwhile the company is working with its Japan based customers to ensure that its employees have
access to all possible options, like:
1. Employees have an option of working from home.
2. Employees may work out of an alternate location like Osaka, China, Singapore or India on Japan
timings.
3. Employees may proceed on leave in consultation with their manager and spend time with their
families inside or outside Japan. They may also choose to send their families to an alternate location.
9. The company’s travel desk is geared to assist with all these arrangements if so required.
"Currently all HCL employees on ground there are safe. The HCL senior leadership is in touch with the
leadership team in Japan and monitoring the situation closely. In the next few days, a senior level
delegation from India will be travelling to Japan to ensure on-ground support. This delegation will be
holding an Open House for all employees at relevant locations in Japan."
As the news came pouring forth, we came to know that HCL Technologies evacuated 70 per cent of its
staff and their families from Japan.
After the earthquake, HCL offered its employees three options: they could work from home, they could
work out of an alternate location like Osaka, China, Singapore or India on Japan timings, or they could
proceed on leave in consultation with their manager and spend time with their families inside or outside
Japan. Around 170 of HCL's Japan employees chose the last option.
As a family of 72,000, HCL continues to pray for Japan to bide over these difficult times. All its
employees observed a 2 minute silence on 15th March 2011, to mark their solidarity for people of
Japan.
Impact –Japan earthquake is the one of biggest earthquake of this year. This affected not only HCL but
many of other company. Japan Earthquake had negative impact on HCL because in Japan there was a
huge loss of companies. Major problem was company’s human resource or employee but this news has
positive impact that they arrange facility to outside of country’s employee for sending their country.
They are giving more flexible time or place for work.
Japan Earthquake has impact on Social, technical, economic environment.
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11. Union budget 2011 effect on HCL
25 Feb 2011
Source- Hindustan Times.
In a interview MR. Nayar said—
What is your sense on the IT budget for 2011?
That's an interesting question because the spending is already on the increase, and you wonder why
that is so, given the macroeconomic indicators both in Europe and the US are not looking good. The
reason for that is the US has largely been driven out of innovation because their domestic consumption
is poor and they are looking at emerging markets as the next destination.
They can reach emerging markets only through innovation and, therefore, you are suddenly seeing the
spend on innovation in the US market very high. Therefore, outsourcing activity in the US is high.
10. Europe is under significant cost pressures. They are reorienting their costs around more rationale cost
structure and, therefore, you are seeing significant outsourcing, especially in continental Europe, is very
high. Hopefully the UK will join the bandwagon in reducing the government's spending on services. Asia,
as I already said, is on hope and, therefore, is spending significantly in going West and globalizing
themselves and being a powerful service and product provider in the West.
Therefore, there is a significant spending there. I would say that for the first time we are seeing all
tailwinds on spending on IT. IT is becoming the centre stage of innovation and revenue increase for
digitalized corporations and looks good for all of us.
After your last quarter numbers you said that margins will take precedence over growth in the next two
quarters. What's your outlook on volume and pricing now?
we were happy to report that in October-November-December, we did a lot of deals. Now, for the next
two quarters, we are going to focus on expanding margins and we would expand our margins in the next
two quarters, and you would see that.
Since the IT sector is facing challenge in terms of higher wage cost, how are you confident that HCL
Technologies in the coming quarters will be able to expand operating profit margins?
It is quite simple. We believe that once we were coming out of recession, the employers who had
participated in the journey in recession needed to be compensated. That may not agree well with one or
two analysts, which I know.
What are your expectations from the Union Budget? Do you expect the STPI sunset clause to be
extended?
You must understand that as an industry, we are hiring almost 2.5 lac engineers every year. That still
constitutes a very low percentage of total number of engineers coming out of colleges in India.
Therefore, if there was an unemployment rate of engineers coming out of India, you would be surprised,
it is quite high. Therefore, the robustness of the IT industry is critical for creating employment.
Impact- Union budget 2011 has positive impact on HCL technology because according to budget 2011
MAT levy on SEZ and non –extension of STPI benefited to impact profitability.
The proposal to bring SEZ under the preview of the Minimum Alternative Tax (MAT) and the non-extension
of tax benefit for STPI units is expiated to adversely to adversely impact the profitability of it
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company.
MAT has been raised 18% to 18.5% whereas surcharge has been reduced from 7.5 % to 5%.
This budget Has impact on political, economical environment.
12. HCL sees strong demand for enterprise services across Asia
Tuesday, January 25, 2011
11. 11
Source: IDG News Service
News-
Global IT services provider, HCL Technologies, continues to see strong demand for enterprise services in
customer relationship management (CRM), engineering, research and development services (ERS), data
warehousing and infrastructure services across the Asia Pacific.
HCL received profits from other parts of the world as well and its revenue for the rest of the world
(ROW) grew 14.6 per cent quarter-on-quarter and 60.2 per cent year-on-year.
ROW comprises of the Asia Pacific, the Middle East, South Asia, Australia and New Zealand, and Africa.
Deals in Asia -
During the second quarter of the financial year 2010-11, HCL won the SAP Award for Customer
Excellence 2010 in recognition of the company's successful and unique implementation of HRM at the
Land Transport Authority Singapore.HCL Japan bagged the Japan Management Association (JMA) HRD
Excellence Award, 2010. HCL also signed a contract with an established Japanese Electronics company
for a three year wing-to-wing Returns Material Management.
Impact- In this news HCL performance is mainly concern so it has impact in internal environment
because it will help for increasing brand value.
13. TCS, Cognizant, Infosys, Wipro and HCL Technologies on hiring overdrive
Mar 25, 2011,
Source – The Economics times.
News-
CHENNAI: The hiring numbers of IT majors leave nothing to doubt about how far the companies have
left behind the recession.
From the quarter ended March 31, 2010 to the one ended December 31, 2010, the top 5 IT majors in
India-—Tata Consultancy Services (TCS), Cognizant, Infosys, Wipro and HCL Technologies-—together
clocked a staggering figure of 1,14,038 net additions in terms of headcount. This stands in sharp contrast
to the net addition figure of 47,462 in the corresponding year ago period.
The numbers have shown a marked increase for each of the big IT companies. The net addition of TCS
for the period from March quarter to the December quarter in 2010 was 37,260 which is almost double
the figure of 19,311 clocked in the year ago.
"During recession, companies weren't recruiting fresher. So there was a deficit, especially at lower
levels. So what is happening now is that companies are replenishing the stock, with fresher accounting
for a big part of it. The higher attrition in the current buoyant mood in the market is also playing a role in
increasing these hiring numbers," said Amitabh Das, CEO of Vati Consulting, a recruitment firm.
12. 12
Impact—
HCL Company hiring the new talents means company has a good condition for acquiring new
employee so its impact on internal environment as well economic environment.
13. Europe to give one-third revenue to HCL Technologies
Jan 27, 2011
The Economics times
When European debt and sovereign crisis is giving anxious moments to multi-national CEOs, India's HCL
Technologies is bullish on the continental Europe, aiming to get one-third of its revenue from the region.
"The Europeans are finding that their costs structures are not competitive...this is first-time that the
Europeans are opening to outsourcing," Vice-Chairman and CEO of USD 3-billion firm, Vineet Nayar, told
PTI on the sidelines of the World Economic Forum (WEF) annual meeting here. With the USD 800 million
acquisition of the UK-based Axon two years ago, HCL Technologies which offers IT solutions across
different sectors, gets 28 per cent of its revenue from Europe.
He said the European companies want to become cost competitive, particularly in the manufacturing
sector, offering opportunities for the Indian IT firms to offer them solutions to improve their bottom-line
by use of technology.
"We see fear in Europe because of debt and Euro crisis... there is a significant emphasis on cost cut in
Europe and therefore they are open to Indian IT companies like never before...," he said.
Sending a strong message to the opponents of the India outsourcing story, Nayar, a regular at WEF
meetings, said that HCL Technologies would hire 90 per cent of their European manpower from the
locals.
With the potential of the private sector in infrastructure, the HCL Technologies will focus on offering
solutions to the Indian power firms, besides the financial services, Nayar added.
Impact-This news has Impact of Global environment because Mr. Nayar said that company’s revenue
generates by different country And many country play a important role of its revenue. This news has
impact on global environment.
BIBLIOGRAPHY
1. www.hcltech.com
2. www.timesofindia.com
3. www.economicstimes.com
4. www.moneycontrol.com
5. Dainik bhaskar newspaper
6. Times of India newspaper
7. Hindustimes newspaper
13. 13
8. Business world magazine
9. Others
CONCLUSION
There are many factors which affect HCl Technology’s environment. Some factor affect company’s
internal environment and some factor affect company’s external environment. In this project some
news include which affect company’s environment.
HCL technology is working in different countries so its business environment affected by political
factor,technical factor, economic factor, social factor.
All news which is mention in this case has impact directly and indirectly and its impact positive and
negative both.