Shrugging aside slowdown concerns in the US and Europe, HCL Technologies reported a 64% growth in net profits, its eighth successive quarter of profitable growth. The company’s chief executive officer Anant Gupta told HT in an interview that HCL Tech’s demand pipeline remains very strong. Excerpts:
Let’s begin with your service line offerings where IT infrastructure services have shown strong growth…
Yes, we see changing dynamics in the market where infrastructure services continue to be a largely untapped play. So we continue to make sure that we drive significant growth in that. At the same time, there are interesting plays between application and next-generation outsourcing and we see good traction in this segment. So we have booked about a $1 billion (Rs 6,138 crore) this quarter and nine deals are transformational and a good portion of that are application outsourcing engagement or integrated application and infrastructure outsourcing engagements.
How do you see the demand environment in the future, especially in the US and Europe?
Our demand pipeline looks very strong. As far as we are concerned, deals from both the US and Europe are very strong and well balanced. We also see good momentum across the financial and manufacturing sectors in the US and Europe as well and this continues to reflect in our portfolio.
What about the re-bid market of mega-IT deals?
Given that still there is so much renewal market available, so we are tracking well with our propositions and strategies in the market place. It is important to understand the comfort level of customers to continue the re-bid churn. In fact, several reports suggest that this renewal or the re-bid market continues to be more than 30% of the total IT deals.
What are the other business verticals apart from financial services and manufacturing where you see good growth?
Well, life sciences, healthcare and public services are the emerging growth momentum for us. Our business in all these emerging verticals has been registering a healthy growth for the past several quarters.