Software major HCL Technologies has stepped up efforts to expand service offerings across emerging markets. The expansion plan, which includes investments in human resources, is in line with the company’s strategy of focusing on new markets such as Asia Pacific, Latin America and Africa and high-end technology solutions for its next phase of growth.
“In the earlier decade growth came largely through labour arbitrage but the next phase of growth will come from high-end technology solutions. We are well set to take up the challenge,” Shiv Nadar, chairman HCL Technologies told HT.
In fact, as markets expand in countries such as China, India, Thailand, South Africa and Brazil, western multinational companies have pland to ramp up operations. This has led to increased IT budgets earmarked for these markets, which throws up opportunities for software service companies.
The revenues of HCL Technologies from regions other than US and Europe for January-March this year grew by 81% reinforcing the potential.
“Emerging markets will form an important pillar for our growth, and we are building upon the strong growth momentum,” said Vineet Nayar, vice chairman and CEO HCL Technologies.
Nayar said China, South Africa, India, Thailand and Japan would show high growth in the medium term.
“Our business in Japan grew by 70% year-on-year,” Nayar cites an example and adds that the rate of growth is phenomenal in all these countries.
“Our clients in developed economies (US and Europe) are pumping huge investments in the emerging markets for their business operations that has created good growth opportunities for us.”