We will invest in strategies that yield revenues in the long term: HCL Technologies

Written by Kirtika Suneja | Updated: Jan 18 2014, 00:57am hrs
A buoyant market, especially in the rebid business segment, helped HCL Tech post balanced growth across verticals and horizontals in the second quarter ended December 31, 2013, besides helping it cross the $5-billion revenue mark during the calendar year. In an interview with Kirtika Suneja, president and CEO Anant Gupta says HCL Tech has identified futuristic blue oceans and will only invest in strategies that yield revenues in the long run. Excerpts:

What were the drivers of the positive numbers seen this quarter

We saw balanced growth across service lines, verticals and geographies due to large transformation deals signed in the quarter. While the US led this growth, financial services, manufacturing and emerging sectors like utilities gave us growth among the verticals. Besides, we are boosting penetration in countries like Germany and Austria, and will tap into France next year. We also crossed many milestones in the quarter.

How does the pipeline look and what are clients saying about the environment

So, large change-the-business programmes are not there and customers want small run-the-business deals. Hence, the RTB business in the rebid market is fuelling CTB. The market is buoyant and the rebid market looks healthy.

The BPO business has been a cause of worry for quite some time now. Are you planning to hive it off

There has been a dip in margins in the BPO business, but we are seeing large-scale contracts, especially in financial services. We are out of the contact centre business and, in that sense, we have hived off old business models and constructs. We have a 2x2 strategy for BPO and have won 4 large engagements in as many quarters.

Is the e-commerce space in India an attractive vertical for the company

We participate selectively in India and the market here has been slow because of the political environment. The government is the biggest spender and there is no strategy for India as of now. As for e-commerce, the market is large and it will take time for companies to find ground here. Moreover, our plan is to invest in long-term strategies, such as our partnership with CSC in the application modernisation space.