Bengaluru: HCL Technologies sees its income rising 7.6% in sequence, the fastest in 12 years, and faster than TC-TCS, Infosys and Wipro.
Growth is led by business products & platforms, and with R & D technical services.
The first is a big bet that has been taken by HCL with the purchase of company inheritance products such as IBM.
In an interview with Toi, CEO C Vijayakumar talks about momentum in this business …
it is a prominent quarter for business & business platforms …
our broad-based growth.
Momentum in the service business continues.
In the product, several offers were not closed in the previous quarter, but did it in the December quarter, and it survived growth.
This is a long-term business, can’t see a quarter quarter.
This is a strategic bet that we have taken, and is distinguished compared to the general industry, which focuses on services.
This requires product modernization, it requires a better position in the analyst ranking.
More marketing will help create good momentum for business.
Some products are mission-important for our clients.
For example, Commerce runs e-commerce for many large companies.
Our product business is at an annual Run rate of $ 1.5 billion and it is a profitable business.
There are very few companies that have annual income of $ 1.5 billion of software products, and also profitable.
What are the organic and inorganic mixes? Sequential growth is 100% organic.
In year-on-year growth, there may be 1% inorganic.
Requests for outsourcing services and transformation are very strong.
Many customers adopt cloud, but more as a business strategy, because Cloud allows them to increase resilience, increase and reduce in line with business dynamics.
We are one of the first build hyperscaler ecosystems and we have our Cloud Smart Offer, which we launched two quarters ago and focused on providing cloud consulting services.
ER & D accounts for 16% for your income and grows at 20% year-to-year …
R & D engineering is the fastest growth segment for us.
Vertical where we have seen most traction is software & internet segments, including silicone design projects.
There is also extraordinary traction in Telecom – is it about low latency, the spread of 5G companies.
There are also medical techniques.
Friction soaring.
How do you handle it? There is a supply gap of demand throughout the world for technology talent.
The only sure way to deal with this is to get more talent into the workforce and train the existing talents to do higher work.
We doubled this second.
We will surpass India for talent scale.
The situation of this deficiency will be there for 2-3 quarters, and then I expect it to normal.
How do customers respond to higher prices for skills in demand and how do you restore pyramid talents? Each program has a talent mix that comes together to give results, and will determine the team’s nature – whether it’s a pyramid or other talent structure.
Open customers to hire technology skills with a higher level.
The service business margin fell 190bps.
Is that because of a wage increase? That, of course, is driven by the escalation of supply chain costs.
We increase wages, which contribute to 80bps (100 basis points = 1 percentage of points) decrease in margins.
Friction has soared and there are charging fees.
These are some reasons that contribute to a decrease in margins.