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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. 
1 
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
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-
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 
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.
Prizes – In addition to the $50,000 experiment implementation funding commitment grand prize, the 
MIX will award cash prizes to the top three hacks. 
Judging Criteria- All entries will be judged based on: clarity of thought and originality, potential for 
impact, feasibility of implementation, and popularity. 
5 
Impact – 
This will affect the company’s social environment because Management Innovation exchange is a 
medium of contribution of society. This will be also helpful in creating awareness about company. All 
Companies will benefited by getting new idea from student . Global environment also affected from 
Management Innovation Exchange. 
4. New S'pore lab eyes business mobility apps. 
Tuesday, February 15, 2011 
Source: ZDNet Asia 
News- 
HCL Technologies sets up first global facility in Singapore dedicated to help enterprises leverage mobile 
technologies to create "innovative" apps. 
The MERLIN (Mobility Experiences Ready to Lead Business Innovation) Lab will leverage HCL’s globally 
acknowledged product engineering DNA. It will also cross-reference HCL’s experience in micro-verticals 
like Retail, Consumer Packaged Goods, Media & Entertainment, Banking etc to ensure superior 
consumer experience oriented IPs. 
Committed to a long term investment in this country”, said Mr. Vineet Nayar, Vice Chairman & CEO, HCL 
Technologies 
HCL, which already has over 1,000 engineers based out of the facility, will work closely with the 
government of Singapore to ensure the lab is a milestone in the Infocom authority’s vision of building a 
vibrant infocom ecosystem in Singapore. “To excel in the mobile application world requires leadership in 
product engineering, laser focus on consumer experience and an entrepreneurial ecosystem of clients, 
partners and developers that sustains the innovation momentum. 
Impact– 
This will affect the technological environment because With the setting up of its first global enterprise 
mobility lab, HCL Technologies can ride the mobile wave by providing "innovative" applications for 
organizations to boost their productivity and better personalize customer experiences. 
5. HCL Launches ACE™ SmartCare© Solution at HiMSS 
February 21, 2011
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.
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. 
7 
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
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.
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. 
9 
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.
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 
10 
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 
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 
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 
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.

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Business environment

  • 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. 1 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.
  • 5. Prizes – In addition to the $50,000 experiment implementation funding commitment grand prize, the MIX will award cash prizes to the top three hacks. Judging Criteria- All entries will be judged based on: clarity of thought and originality, potential for impact, feasibility of implementation, and popularity. 5 Impact – This will affect the company’s social environment because Management Innovation exchange is a medium of contribution of society. This will be also helpful in creating awareness about company. All Companies will benefited by getting new idea from student . Global environment also affected from Management Innovation Exchange. 4. New S'pore lab eyes business mobility apps. Tuesday, February 15, 2011 Source: ZDNet Asia News- HCL Technologies sets up first global facility in Singapore dedicated to help enterprises leverage mobile technologies to create "innovative" apps. The MERLIN (Mobility Experiences Ready to Lead Business Innovation) Lab will leverage HCL’s globally acknowledged product engineering DNA. It will also cross-reference HCL’s experience in micro-verticals like Retail, Consumer Packaged Goods, Media & Entertainment, Banking etc to ensure superior consumer experience oriented IPs. Committed to a long term investment in this country”, said Mr. Vineet Nayar, Vice Chairman & CEO, HCL Technologies HCL, which already has over 1,000 engineers based out of the facility, will work closely with the government of Singapore to ensure the lab is a milestone in the Infocom authority’s vision of building a vibrant infocom ecosystem in Singapore. “To excel in the mobile application world requires leadership in product engineering, laser focus on consumer experience and an entrepreneurial ecosystem of clients, partners and developers that sustains the innovation momentum. Impact– This will affect the technological environment because With the setting up of its first global enterprise mobility lab, HCL Technologies can ride the mobile wave by providing "innovative" applications for organizations to boost their productivity and better personalize customer experiences. 5. HCL Launches ACE™ SmartCare© Solution at HiMSS February 21, 2011
  • 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. 7 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. 9 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 10 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.