...HCL Technologies Ltd. HCL Technologies Ltd. (HCLT) is a leading global IT services company offering various services in Application Development & Maintenance (ADM), Engineering and R&D Services, Enterprise Application Services (EAS), Enterprise Transformation Services, Infrastructure Management Services (IMS)and BPO. HCLT delivers solutions across banking, insurance, retail and consumer, aerospace, automotive, semiconductors, telecom and life sciences sectors. Its well-established infrastructure management practice, combined with recent acquisition of Axon, provides significant cross-selling opportunity, which could help HCLT win some of the large size deals. At CMP, the stock is trading at 15.5x FY12E and 12.3x FY13E earnings. We recommend a buy with a price target of `587 i.e (15x FY13e Adj. EPS of `36.62 + value of investments per share of ` 37.5). KEY HIGHLIGHTS ■ HCLT grew faster than Industry: Indian IT exports grew at a 5-year CAGR of 23% from $18bn in FY2005 to $50bn in FY2010. HCLT revenues grew at a 5-year CAGR of 29% from $764mn in FY2005 to $2705mn in FY2010. ■ Axon acquisition adds value: Prior to the acquisition of Axon in 2008, about 11% of HCLT’s revenue came from EAS. With the acquisition of Axon, HCLT’s revenues from enterprise solutions increased to more than 20%. ■ Gaining market share in ADM & IMS space: HCLT’s performance has been particularly strong in deals with bundled ADM and IMS. With the rising traction in restructure/renewal of global...
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...Purpose HCL Technologies provide a range of outsourcing services, business process outsourcing, and infrastructure services. The purpose of this paper is analyze trends and economic forces that impact changes in the global marketplace, analyze the impact of market trends in driving innovations in organizational, structure, culture, and process, and also to analyze leadership in relation to the effectiveness of general management planning and decision making. Majority of my information will come from HCL Technologies case study with Nayar’s insights about the subject. Analyze trends and economic forces that impact changes in the global marketplace. The product that HCL Technologies sells is a service that customers use to make their business better. Staying with the latest trends is very critical in a service based business like HCL Technologies. The first trend I would like to talk about is Technology trends. Technology trends can drive innovation and influence decision making in the IT service industry. According to Hickman (2010)" Developments in technology lead to new products and services and improve how they are produced and delivered to the end user. Innovations can create entirely new industries and alter the boundaries of existing industries." A future trend that will spread rapidly in the IT industry will be Cloud Computing. There will soon be away a business can obtain and maintain software, hardware, and computing capacity. According to the Nayar Case study...
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...Sign in Screen reader users, click here to turn off Google Instant. About 493 results (0.29 seconds) Search Results John Kotter s Eight Stage Change Model Free College Essay 301 ... www.termpaperwarehouse.com/.../john-kotter's...change-model/16 HCL employees than products or services. 2. To what extent did Vineet Nayar follow the change models proposed by Lewin and Kotter? Explain. Vineet Nayar ... The Case Of The Software Proposal Term Paper 741 - 760 www.termpaperwarehouse.com/subcategory/the-case...proposal/38 2. To what extent did Vineet Nayar follow the change models proposed by Lewin and Kotter? Explain. Vineet Nayar followed the change models... Save Paper ... Forces Of Change At Hcl Technologies Vineet Nayar Free Essays 1 ... www.studymode.com/.../forces-of-change-at-hcl-technologies-vineet... 20+ items – Free Essays on Forces Of Change At Hcl Technologies Vineet ... Vineet Nayar Vineet Nayar is the vice chairman and CEO of HCL ... Hcl Technologies pioneering efforts of its president, Vineet Nayar, HCL ... Vineet Nayar - Harvard Business Review blogs.hbr.org/hbr/nayar/ Feb 18, 2013 – Vineet Nayar is vice chairman HCL Technologies Ltd, an India-based ... Or are you asking only because you think that's the right thing to do? [PDF] kre29368_ch18_528-56.. auth.mhhe.com/qa/connect_docs/.../kre29368_ch18_528-564.pdf File Format: PDF/Adobe Acrobat - View as HTML Dec 7, 2011...
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...been growing vary to a great extent. Even in terms of future guidance, one company hovers around 6-10% vis-a-vis another at 17%. Volatility has seeped into this industry. It is becoming increasingly difficult for the investors to invest in any of the companies, thanks to the sinusoidal growth of some of the bellwether IT companies. An investor needs to do an in depth analysis of the business model being followed by various companies. I need to look into their target geographies, service lines and industries. Scrutinising these parameters along with the valuation of the respective stocks will give a better idea about the future prospect of these companies. In this research, I have taken top four Indian IT companies- TCS, Infosys, Wipro and HCL. An in-depth analysis of each of the companies is done. I have looked into various domains of the companies. IT industry has many service lines- IT Services, Consulting, Products & Platforms. Place - Mumbai Date – 04/06/2013 Vaibhav Jha 2 Acknowledgement I take this opportunity to express my profound gratitude and deep regards to my guide Mr.Vinit Bolinjkar (Head, Equity Research) for his guidance and constant encouragement throughout the course of this project. I am highly indebted to Mr Chintan for his guidance and support in understanding the working of...
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...COMPETITOR HCL CASE STUDY Submitted to Prof. Rahul K. Mishra Prof. Anomitro Bhattacharyya Mr. Dinesh Kumar INTRODUCTION HCL was founded by Shiv nadir in 1976. Through Nadar’s sophisticated R&D capabilities it took the lead in Hardware market. Nadir was receiving international recognition for his ability to spot technological trends early and capitalize them. Vineet Nayar, President of HCL joined the company in 1985 as a senior management trainee and later founded HCL Comnet, IT Infrastructure and Networking Business. HCL had golden years till 1980 after that the company’s growth started declining. The company ignored the changing trends of the industry. In 2005, Vineet took the lead of the company and invented the corporate strategy called “Employee First and Customer Second”. ISSUES OF HCL * Government of India deregulates the policy of MNC’s entering into the market. IBM returned to India * Changing Trend in customer demanding IT services * The nature of service industry was changing * Within the organization employees were working in Silos * Huge challenges in Sales and Delivery Groups * HCL was no longer the place where employees wanted them to get associated with. * Company was focusing on small time engagements PORTER’S FIVE FORCE MODEL OF HCL Threat of New Entrants There is a very high risk of threat of new entrant. Companies like Acer,...
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...and new beginnings. One who introduced this concept to a failing organization, was an innovative leader named Vineet Nayar. In 2007, Nayar was named CEO of IT Services and Outsourcing Firm HLC Technologies. With his strategic vision and global outlook, he catapulted the then dismal firm into the leader of the organizational pack in a short amount of time. In the beginning of Nayar's 2010 article "A Maverick CEO Explains How He Persuaded His Team to leap into the Future”, he describes his appointment as President of HLC technologies as a “leap to safety.” (Nayar, 2010) It became apparent that there was something he needed to do to change the interface of this company. He began to create a vision, but knew that it would not take place without some major adjustments. Vineet formulated the” employee first, customer second approach” and took HCL to be one of the most successful IT outsourcing businesses in the world. It worked magic at HCL and the company created 34% percent revenues even at the time of turbulence (sparks.wisdomjobs.com). Key insights from his approach were: 1.) Be transparent – share information, show you have listened...
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...Building an Innovative Organization The president of HCL Technologies, Vineet Nayar started with the company in 1985 as a management trainee, working his way up through the company as president. Through Nayar’s pioneering efforts, he is putting into place a series of small changes that will have a potentially dramatic effect on how employees in the company work. In order for Nayar to deliver on that promise, he realized he needed to make changes inside the company. Nayar’s focus was to create an innovative company. Nevertheless, he was unable to do that without making sure that the internal organizational structure was innovative. Nayar’s objectives were to, reverse the pyramid and place the power in the hands of his employees, making managers accountable to their employees, instead of the employees accountable to their managers. Although his methods may be considered unique, drastic, and definitely risky, he had a few principles that would shape the changes, he was putting in place (Employees First, 2007): • Employees first and the customer second, was that of Nayar’s thoughts and that of spoiling the employees would make them believe that HCL was a great company to work for, his return would be that the employees would then deliver value. (Employees First, n.d.) • He also believed that simplicity would reduce the gap between a manager and their employees. Nayar wanted to reduce the restriction of information flow by setting up artificial borders between...
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...991 - HCL Technologies Limited was originally incorporated on 12th November, as "HCL Overseas Limited". The certificate of commencement of business was received on 10th February, 1992. On July 14, 1994, the name of the Company was changed to "HCL Consulting Limited". The Company changed its name to "HCL Technologies Limited" on 6th October 1999 to better reflect the line of activities of the Company. - HCL provides new technology development services to its clients. 1996 - The 50:50 joint venture with Perot Systems Corporation in the year, provided access to high value client base of Perot Systems. - The Company has one of the largest software development infrastructures in India. This state-of-the-art infrastructure, which comprises seven software factories, is designed to take advantage of the high productivity and scalability as well as the relatively lower cost of software development in India. 1998 - The Company started addressing the markets in Europe and Asia Pacific. - The company has a rich heritage in technologies like the Internet and e-Commerce, networking and internetworking, Internet telephony, telecom, embedded software, ASIC/VLSI design and testing, satellite communication, wireless communication and component based object technologies like COM, DCOM and CORBA. - The Company has the capability to work with a wide variety of computing platforms ranging from Open Client Server systems comprising all flavors of UNIX, Microsoft platforms, AS/400...
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...Case Analysis: HCL transforming itself to compete with the Big IT Services Firms The underlying issue for HCL Technologies was how to achieve even better growth than it already was and to find a way to compete with the larger IT services firms. HCL’s CEO, Vineet Nayar believed if he could transform the way his company thought and behaved he could continually improve HCL. He wanted a company that continued to get better and evolve. He created this by changing the way people think and by leading by example, creating results through change in philosophy, change in transparency and change in what the companies actual product was. This organizational change was actually a change in behavior that was carefully crafted through a positive and reinforced change in culture and mindset. Vineet’s problem was how to accomplish this while he already had a successful company growing already. He was willing to take the chance to grow his company though change while most CEO’s would have sat back and enjoyed their thirty percent annual growth. Vineet understood that even though they had a good growth number that his company still lagged behind the larger IT companies and he wanted to make sure HCL reached that same level or better. Utilizing Lewin and Kotter’s models for change he was able to enable his employees the opportunity to become the focal point of his plan of change. He was successful because he championed the change, created plans and allowed his employees the opportunity...
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...* What was the strategy and culture of HCL Technologies in 2005? Focus on three phase strategy focussed on value centricity: * Phase 1 The company had to move up the value chain - Differentiate themselves and start going for larger , more complex engagements, * Phase 2 - Move from just Infrastructure and software business services to multi service offering - Form strategic partnerships with other companies so they could jointly offer more value and end to end services for customers. * Phase 3 – Innovation change the business model, 50% of revenue would come from service that did not exist in 2005 - Remove the silos - Encourage Collaboration (everyone working towards the same goals) * What are the key external conditions impacting HCL Technologies? * Indian government began to deregulate, multinationals like IBM returned adding more competition. * Customer wanted competitive advantage such as global IT Leader transforming themselves into service delivery businesses. * Companies were increasingly offshoring recoding and application development work to India to take advantage of lower costs * Given these internal and external environments how did Vineet Nayer (the CEO) use people management to drive performance? * Making Employees “first, customer second” approach- Employee First’ is a management approach, proposed by HCL’s CEO, Vineet Nayar. It aims to turn the organisational pyramid upside down and make management accountable...
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...introduced this concept to a failing organization, was an innovative leader named Vineet Nayar. In 2007, Nayar was named CEO of IT Services and Outsourcing Firm HLC Technologies. With his strategic vision and global outlook, he catapulted the then dismal firm into the leader of the organizational pack in a short amount of time. In the beginning of Nayar's 2010 article "A Maverick CEO Explains How He Persuaded His Team to leap into the Future”, he describes his appointment as President of HLC technologies as a “leap to safety.” (Nayar, 2010) It became apparent that there was something he needed to do to change the interface of this company. He began to create a vision, but knew that it would not take place without some major adjustments. When one thinks of innovation, it is a term used to described new ideas and new beginnings. One who introduced this concept to a failing organization, was an innovative leader named Vineet Nayar. In 2007, Nayar was named CEO of IT Services and Outsourcing Firm HLC Technologies. With his strategic vision and global outlook, he catapulted the then dismal firm into the leader of the organizational pack in a short amount of time. Vineet formulated the” employee first, customer second approach” and took HCL to be one of the most successful IT outsourcing businesses in the world. It worked magic at HCL and the company created 34% percent revenues even at the time of turbulence (sparks.wisdomjobs.com). Key insights from his approach were: 1.) Be transparent...
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...L. Carter November 10, 2015 Introduction A global trend is a general development or change in a situation that affects many countries of the world. Innovation is a creative idea, process or product. The two together are a powerful team. Without one or the other a company is likely to fail. Global trends provides direction for a company and affects the company’s strategic plans for the future goals. The purpose of this paper is to analyze and identify the global trends that influenced the need for Vineet Nayar, former CEO of HCL Technology, to create a more innovative organization, explain the relationship between the global trends and Nayar’s role as a leader of innovation, evaluate Nayar’s use of the five discovery skills and make recommendations for improvement of Nayar’s use of the five discovery skills. When Nayer was appointed as president of the Delhi-based IT services provider HCL Technologies he had many challenges. Even though HCL Technologies revenue was growing by 30% a year, it was losing market share and mindshare and its competitors were growing at the rate of 40% or 50% a year (Nayar, 2010). The IT service industry was changing rapidly, customers didn’t want to work with an undifferentiated service provider that offered discrete service; they wanted long term partners that would provide end to end services (Nayer, 2010). Within four years Nayar was able to triple the company’s annual revenues, doubled its market capitalization, ranked as India’s best employer...
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...What is innovation? The basic definition is the act of introducing new methods, ideas or products. When thinking about innovation, we have to think about innovative leader Vineet Nayar and how he introduced this concept to HCL in 2007. His strategic vision and global point of view propelled the then gloomy firm into the leader of the industry in a short amount of time. Factors in the global environment that influenced Nayar’s need to create a more innovative organization. Vineet Nayar was appointed CEO of HCL Technologies, an IT services provider at a moment when the company, although it was presenting revenue growth, it was losing market share and mindshare. Nayar (2010) mentions how the competitors were growing at a rate of 40% to 50% a year, while HCL was growing at a rate of 30%. The IT services industry was changing rapidly. Customers wanted long term partners that would provide end to end services. These factors alongside the traditional pyramid organization that HCL had influenced Nayar to transform the company into what was known in 2009 as India’s best employer. The company was able to triple their annual revenue and double their market share. Nayar embrace the culture of Employees First Customers Second, this practice was about alignment towards a common goal and making sure everyone is involved. An engaged organization is one where people are aligned towards the organization’s goal, and where management is in the business of making sure they have the tools...
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...Paulla Fowler Message to Prepare for Future Challenges March 11, 2012 MBA 6006 Nayar at HCL Technologies prides himself and his office on being transparent. They encourage their employees to be responsible for their actions: Through the value portal where employees and customers collaborate together to develop new innovations. With the improved use the of Blue Print portal for the main managers peer-to-peer reviews to create new innovations. To the various forms of internal and external messaging used on a local bases to improve overall employee passion and customer satisfaction. In 2006 the CEO had recast the role of his office and transferred the responsibility for change on to his employees for many initiatives. One example is that of the value portal. The company wanted to change the relationship with their customer by enabling them to be more responsible for their partnership with the company. Nayar wanted his customers to be actively involved while also challenging his employees to go beyond their defined roles and responsibility. He accomplished this by creating a portal that could be used between customers and employees. This portal the “Value Portal” allowed customers to evaluate and rate the new ideas that HCLT employees generated. The portal was very successful and hundreds of HCLT customers join and thousands of ideas were generated with a potential savings of hundreds of millions of dollars(Nayar, V. 2010) . With this success Nayar felt his employees...
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...Latashia Spears Unit Assignment 1 3/3/13 HCLT commitment to transparency and their efforts in inverting the pyramid were making a great difference for the company. The blueprint meetings, planning and implementation process has allowed HCLT to successfully compete with the best global players in the IT industry. Even though HCLT was still a small company, they saw their business growing. They began to hire hundreds of new employees and with worldwide revenue; they were quite diversified with operations in eighteen countries. One of Nayars primary focus was keeping the employees first and customers second, but with the massive growth and gain of new employees, Nayar wasn’t sure how to sustain that focus. “How would new people coming on board understand the importance of trust and transparency”, Nayar asked. This question is what brought about the Starfish and the Spider leadership organizational concept by Ori Brafman and Rod A. Beckstrom. Most companies, they argue, function like eight-legged spiders. “Cut off the leg of a spider, and you have a seven-legged creature on your hands; cut off its head and you have a dead spider”. “But cut off the arm of a starfish and it will grow a new one. Not only that, but the severed arm can grow an entirely new body. Starfish can achieve this feat because, unlike spiders, they are decentralized; every major organ is replicated across each arm”, (Nayar, V. (2010). Recasting the Role of CEO: Transferring the responsibility for...
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