Despite the uncertain global economic environment, HCL Technologies has beaten market expectations with its robust performance for several quarters in a row.
In a free-wheeling chat with HT, Anant Gupta, president and CEO talks about the company's strategy. Excerpts:
Despite a choppy business environment across the globe you have been beating market expectations. Tell us how.
This is not a single quarter story, rather it has been going on for quite some time. The reason for beating market expectations is our broad-based portfolio, be it in terms of region or verticals or in the service line categories such as infrastructure, applications, engineering services or enterprise applications.
So we do not have any one business that garners 60-70% revenue for us, which in effect provides us with an advantage and evens out different propositions.
So when did you actually begin diversification of your businesses?
The first big bet happened way back in 2005 when we participated in remote infrastructure management at a time when the entire Indian IT industry was playing around with application services.
At that time we came in with our new business model for remote infrastructure management. This business, currently, is growing a robust pace. The next big bet came in around 2008 (at the time of onset of the financial crisis).
This was on end-to-end IT outsourcing model rather than the offshore- centric outsourcing. Both these bets are now paying off well.
What are your next big bets?
In terms of service offerings, we are developing infrastructure, software as a service, social mobility, analytics and cloud. Among verticals, we see healthcare as a major play in certain markets and alternative outsourcing that is fast emerging as a new way of doing business.
And how long do you expect your strategies to take shape?
We expect our strategies to reach an inflection point in 2-3 years. And post the inflection point it should completely be a hockey stick kind of growth. In fact, that kind of robust growth is visible currently in certain businesses wherein we had invested long back.