HCL scouts for R&D firms in Europe

Written by fe Bureaus | Bangalore | Updated: May 12 2010, 04:55am hrs
HCL Technologies is scouting for acquisitions in Europe to beef up its delivery capability in product engineering services. The India market for the service, estimated at about $11-12 billion in March 2010, is seeing a surge in activity as customers globally free up discretionary budgets to prepare for growth.

Acquisitions will be one of our main engines of growth. Customers want local delivery capability and we are exploring companies of different sizes to build capacity in Europe, executive vice-president & global head of sales, engineering and R&D services Sandeep Kishore said on the sidelines of a media briefing session.

The division contributed to about 19% of HCL Technologies March quarter revenues. It is one of the fastest growing service lines registering 11% sequential growth.

The HCL executive said its existing customers are now willing to shift bigger chunks of work offshore as time to market and cost pressures take root along with the market recovery. Product companies globally have started putting more money in new product development.

HCL, which claims that 40% of the software in Boeing 787 Dreamliner has the companys footprint, is betting big on the aerospace sector where the governments defense offset clause is just starting to kick in. In this sector, the firm has already worked in more than 20 major systems, has reengineered the flight test system, and has helped achieve shorter time to market with its global delivery model.