I would like to start by putting this conference together for you telling you how this was done. 100% of this conference has been put together by the employees, 100%. Every single step in this conference from the design of the village out here, the conceptualization of a well, the conceptualization an Indian heart, the conceptualization of the fact that this will look very good when we send videos back to the people who are speaking, the whole conceptualization of how you guys will be jet lagged and we should serve lunch out in the sun and create those spaces, the conceptualization of the whole evening stage, how the stage will be done, what songs should be played, the very fact that the first song "Maria" which was played yesterday was also thought by an employee, the fact that you know, it will augur very well with some of you who got married on that song or you played it for your dad or whatever it is and a lot of detail has gone into making this conference a warm conference as it is. I always believe, conferences should be warm. There are about 800 employees who worked one year. I mean, the day previous conference ended, the next Monday was our first meeting for the next conference. So a conference like this takes one year and you would be surprised that the next conference meeting is also the coming Monday. So it takes one year to plan this and these guys have done a good job. So what I would request all costumers do is if you could stand up for a minute and give the HCL guys a standing ovation.

This is what I really feel proud about, I mean, we have such a fantastic team that you don't want to do anything else, you just want to co-create newer and newer value every time. The second I definitely come and thank all of you to have taken the effort of coming here. You flew over the weekend. You took over jet lag. You dedicated two days for us and we really appreciate it and it is really important for us to say thank you in a very good way, so may I request all the HCL guys to stand up and give a very big thank you for all you.

So in my closing remarks, there are a couple of things which I wanted to share with you. We started with the fact that there are a lot of uncertainties in the market space and those uncertainties are driving opportunity which is what we heard and the uncertainty-opportunity equation is resulting into, the concepts of business transformation and the business transformation is being driven either through innovation. We talked about that in today's panel or through collaboration; we talked about that in the starting panel and that paradigm is very, very interesting, because HCL also saw a disruption in the market space and uncertainty in the market space on the way business was being done. The fact that, we were hardly adding any value as an industry, we were charging for effort, not creating value, the relationship didn't exist and we saw an opportunity there. From the uncertainty of the business model, we saw an opportunity and that opportunity converted into a business transformation and that business transformation was led by huge innovation, which was led by actually a CIO which comes CIO and HR organization, which is documented well in the Harvard Business Case Study, which you should all read and if you need any help, we will be very happy to put our HR folks next to you to answer those questions. So we wrote it from a cultural transformation which was very, very important and that's where the employee first came in and we drove the business transformation. Now business transformation which is the product, what are the services we offer, we have to create a sustainable differentiation, so it is as I said in my opening remarks, there are four or five things which we did, multi services concept to manufacturing, a lots of other stuff which we did, which slowly got copied by others, right? And therefore it got adopted as standard and we have to constantly innovate and bring about more and more sustainable differentiation between us and our competition.

So what I want to share with you is what are these 10 areas. The areas where HCL is making significant investment and you as customer should know that and that's I thought would be the most meaningful time to spend out here. Remember, the thinking IT framework which we presented to you. The way we look at life is run the business and change the business. The way to run the business is constituting anywhere between 50% to 80% of your budgets and there has to be a disruptive innovation in run the business. At the same time, there has to be disruptive innovation and change the business, and how do we drive these two things is very, very critical in our frame of thinking. So the way we decided that we are going to invest and change the business is through three large strategic investments. The first is the investment in SOA. Now most of the people have talked about SOA in different parlance. HCL's frame of reference on SOA is around process integration and we believe SOA around process integration is the way to go and what we have done is we have created an integration center, competence center, an integration competence center which helps integrate various processes and we have invested our own IP in SOA which is called cross fit. Now that IP helps test once the processes are integrated, it helps do the testing rather than doing it manually; it helps do the testing and therefore the ability to implement in SOA architecture within the organization significantly enhances in our ability to implement SOA within an organization with lesser skill resources and therefore a scalable business model, is one area we have made significant investment in and that was the session which was hugely appreciated and attended and that team was greatly in demand. So that's the first area we made significant investment.

The second area where we made significant investment is two years ago we saw the state of HCL and the state of most customers is most of our company, most of us are looking like zoos because of the legacy application we have developed over years. Now when we talked about innovation, if you really want to implement innovation very quickly, you quickly develop a product, which is not fully ready but you quickly develop a product and launch it and the way you launch it is, it doesn't have the full functionality but it is based on the easiest to develop and easiest launch and suddenly that application becomes successful, more and more people use it and that became a standard within the company and the CIO goes away or something happens and then more and more such legacy applications really come in. So you have multiple applications running, some you know and some you don't even know that it exists and then it really becomes a mess and even two years ago, HCL application landscape was a mess. We had lots of innovation applications but they were largely disintegrated. So the application portfolio optimization was the biggest, service we brought into the table again two years ago and we have made huge investments in the APO. The way we look at APO what we have done is we have invested into multiple methodologies. Again, our emphasis is in terms of standardization and standardization of methodology so that we can quickly role them out into your organizations. Now the way we look at the multiple methodologies is that in APO there are some customers who have performance issues and therefore the APO around performance is different. Some people have cost issues, efficiency issues, consolidation issues; so depending on what the challenge in that particular environment is, we have invested in various methodologies and standards which we role out pretty quickly to be able to implement APO within the organization and that is again the value we bring to our organizations.

The third area we are hugely invested in, and that is also because, I come from that background, is the whole area of run the business which is the operations. What are the things which we have seen is the infrastructure management piece, is largely well understood. There are tools and processes, which are driving those and there are standards, there are dashboards, there are matrices, everything is well known. The moment you go into production support and go above into application monitoring, you see fuzziness, because when the developers define that as their zone and the moment developers define production support and application maintenance as their zone, the robustness which is required for monitoring applications and production support doesn't come in as they screw with the infrastructure management. We saw the opportunity of run the business as operations excellence and we have brought in the tools and processes and methodology which were used largely in infrastructure management and we brought that into application operations and production support and we combined that into an integrated operations and management center and said that we will get into the business of transaction monitoring rather than infrastructure monitoring and application monitoring. That's and area which we have significantly invested in and that's where again we are driving cost out, increasing SLAs and giving more predictability to what's happening at the customer location and doing it around ITIL and also increasing documentation knowledge management there.

Fourth area, which is a very interesting area, and I think here is where HCL is put in huge amount of money and you have not seen this. The data, largely in organization is in a mess because of multiple instances of applications or multiple applications and most of these data, even if you take any organization, most organization including HCL, we have data problems. Master data management has multiple voices being talked about, what master data management is, what it should be. We believe that the single business user view to all data and data consistency is a definite must for any organization which needs to grow and if that has to happen then the MDM solution to be implemented in the organization is very, very critical. So what we gone ahead and done is in financial services sector where we believe there are solutions not existing we have developed our own product called Penstock and today that product is being used in collaboration with our customers Nasdaq OMX and is being sold in Europe and that is what we are using to leverage our understanding of MDM and drive disruption in the MDM space. So while we collaborate with SAP on the MDM in the financial services sector, we are seeing this collaboration to be an extended collaboration with Penstock sitting on top of it and driving higher and higher gains for master data management in financial services. So that's a fourth area of investment. We have already invested close to 32 million dollars in that product so far.

The fifth area of investment is what I call, the whole concept of system engineering. We believe there has to be an alternate to the ODM design where you do not own the design and the ODM manufactures own the design and we believe that if we can create this concept to manufacturing where we allow you to own the design in collaboration with Celestica, we see it as a winning proposition. So for system engineering, we have gone ahead and invested significantly in prototype manufacturing facility, in testing and certification facilities, in EMS partnerships with Celestica and we have created our own IP and frameworks like SIP and WiMAX. So that is where our system engineering investment is going. It's an area which is of high interest to us and an area where we continue investing and that is an area which is growing at 40% year on year and that's where we really come from.

Similar to the fifth investment in system engineering is our area of sixth investment which is the SaaS. Now what really happened was that our alliance to ISVs is very, very strong and the reason of our alliance to ISV is very strong is because as Shiv explained, we come from that background where we had to design our own operating systems, our databases and you also saw the announcement which we announced today with MySys. Now while that alliance was strong, that alliance was about product engineering of their products, professional services on their products, and using their technology understanding to deliver those products to be enterprise customers. So Documentum, Filenet, most Microsoft, SAP, most of the ISV relationships which we have are innovative relationship, because they start from product engineering, go to professional services and then go to enterprise. We use that knowledge to implement those solutions within the enterprise. And therefore, customers always consider us as technically or technologically far more advanced than any of our competitors predominantly, because 40% of our revenue comes from engineering, I mean, from developing and working with these partners. Now we saw an opportunity that we have to bring some disruption in this relationship and that disruption is not about go to market alone. That disruption is about taking some of these products, some of them are legacy products and some of them are not SaaSed and SaaSing them. And if we are able to SaaS them, there are two or three advantages which accrue. First is why can we SaaS them. We can SaaS them because as an organization we have now integrated the infrastructure management practice and the engineering practice as one practice to be able to be offered to these companies where we can SaaS them. Because for SaaSing you need the knowledge of product engineering and we need the knowledge of management of applications and management of infrastructure. You need to combine them so that you can SaaS them. So that's one advantage of why we got into it, but there is a more dramatic advantage. The whole advantage is that when we look at customers spending millions and millions in dollars and license fees, on products and services, which are not necessarily core and they really don't need to own, we saw an alternate business model which can be offered and can be offered by HCL. So if we join hands with some of our ISV partners and you would see more and more of that coming from the house of HCL in the next two to three years, if we can join hand with the ISV partners, invest in SaaSing the application, host it, SaaS it, and offer to our enterprise customers as part of the package solution which we are offering to our customers as a full scale solution, which we offer, which include the SaaSed products under usage license fees. I believe that we will have disruptive model for the business which others will not have. Now, this will not be a this year launch, but this will be in the next two or three years, you will see that happen but in meanwhile for those of you in the ISV area, that is where we are going and for those of you in the enterprise area you can see where HCL is investing so that hopefully we are ahead of the curve on the SaaSing and provide solutions to you and that's the sixth area of investment which HCL was doing.

There are two areas of investment for delivery excellence which is very, very critical for an organization like us that we have to drive delivery excellence, because that's the core business we are in. Transition, I believe, is the biggest risk in any project. Once it is transition, then it is okay, but transition is the biggest risk. And we created our own asset methodology and that methodology is the first methodology which is completely automated, runs across offshore and onside, infrastructure operations, application operations, application development, and enterprise services. It runs over run the business, transition and transformation simultaneously and it has enough content on knowledge management. So using asset methodology, we believe that we have been able to cut the cycle of transition by almost half and reduce the risk of transition significantly. You must remember when we did this outsourcing deals with Dixon, Scandia, Teradyne, Autodesk and many others, transition management is the biggest risk and we found ourselves not to be very good in doing that and therefore it was very important for us to make that investment so that transition management becomes a key competitive differentiator. What is interesting to note, is not many people have invested in delivery excellence on transition predominantly, because most of Indian IT industry has come from the coding factory that you take small pieces of code and that is what is offshored. So transition of a total IT operations has really not become an important factor and therefore you have not seen such investment, but we see that as a big investment area. The other area which is in the delivery excellence which we have invested is the value-added framework. Now remember, we talked about two years ago that we need to move away from measuring our relationship by volume and start measuring value. One of the most important factors of value added framework is the fact that we need to bring about a cultural change within our organizations, where the employees start measuring and respecting value being created. Now how do you do that? It's less of a problem between us and the customer. It is more of a problem of how do we motivate the employees to start looking at their value creation and that is critical and that's the reason we created what we call the value-added framework. I am happy to share with you that this framework has been invested and implemented with five of our customers and we are getting early indicative responses with them and we are implementing this and getting responses of how this relationship would work, where our employees will create this value ideas. These value ideas will be rated in partnership with the project managers at our customer locations. How points will be collated and how we will encourage an environment where as Padmasree rightly said, there are a lot of ideas which get generated at India and get respected in the customer end and we motivate people and incentify people to give those ideas irrespective of which direction, so that's another area of investment which HCL is making in form of delivery excellence on value framework.

The ninth area HCL is making significant investment which is different to others is the whole concept of global delivery model. Now on framework of reference in global delivery model is little different that we do not need believe, we need to go to China or Malaysia because of cost reasons. I believe India is as cost effective as any and there are lots of Chinas every 100 kilometers away from an Indian city. Right, you can create as many Chinas as you want. However, there is a country risk and there is a diversity which you need from value perspective. You need delivery out of Poland for Europe, you need delivery out of Canada for US. So there is a strategic reason why that global delivery is required and therefore we are looking at global delivery model purely from a value point of view and not from a cost point of view. Once you have taken that decision on how the global delivery model really works, we have also took a second decision that we are not interested in a country. We don't have a country strategy in global delivery. We have an industry strategy. So financial services, we chose Poland and Brazil. So we chose the country, based on the industry vertical. So industry vertical alignment with countries was very critical; so financial services with Poland and Brazil, Hi-Tech and manufacturing, we are going to China, and Telecom, it will continue to be Northern Ireland and those are the decisions we take which is industry alignment and that is where we are. We are in a thinking process, thinking of South Africa, quite actively and hopefully if there are a couple of things which fall into place and you will also see South Africa as a financial services hub because of strategic reasons. So those are the nine investment areas.

There is one other investment area which I want to talk about which is close to my heart. We have to keep stretching this envelop on employee first more and more. And if we don't because otherwise most of our ideas will get copied and our organization will also look and feel exactly the same as everybody else. I personally believe that the core differentiation between us and our competitors is the culture of the organization as I shared with you. And let me share that back again with you. There are four core differentiations which were brought to your attention last time. First is the fact that this company is very value centric not volume centric; so value centricity is the choice which we have made; the second is the employee first because we believe that the value is being created between the employee and customer and therefore as management we have to be accountable to the employees, and therefore value centricity and employee first go hand in hand to be able to create incremental value for the customers. The third is the whole culture of trust, transparency, and flexibility that we have to stretch the envelop of transparency to drive trust and we have to stretch the envelop of flexibility to respond to business needs. We talked a lot about disruption, which is happening in the market space. So how can we be a partner to the customer without demonstrating flexibility? We have to demonstrate flexibility; otherwise we are not a good partner and the last which is about relationships. That we are a company which believes in relationships and we believe people do business with people and as long a relationship is there, competences are there, then the two teams will figure out how to do. Having this background, it was important for us to go back and recreate and rethink our strategy with reference to our HR practices and there is a new concept we have launched and I would like to share with you, because we recently shared that with our employees and it is quite a buzz with our employees and you will hear from them and instead of misinterpreting it. I just thought I will explain this to you, so that initiative call, destroy the office of the CEO. So what does that mean? What really that means is that we believe that the higher you go in the organization the more far away you become from your customers. You really don't understand the ground issues, real issues which are on the ground, and on one side if we are saying that the value is actually being created by the employees in the interface with the customer employees, how can we have so much power in the hand of the CEO. CEO is just a concept but how can we have so much power of decision and where the innovation really getting driven. The innovation will not get driven in a hierarchy organization. Hierarchy organization, command and control structures were formed during, when people used to fight wars to win business. So when you have to fight of war, you need command and control structures that was still okay in the manufacturing sector, where the value was being created actually in the back office in the manufacturing area, and the interface between the customer and the company was the product. So that was fine and command and control would still work there; but in our kind of organization, services organization, where the interface between the employee and the customer is where the value is getting created. How can you have a command and control structure? How can the guy who interfaces the least with the customer commands the most power to do something in that interface so that was all wrong. That taught us that hierarchy organization is not necessarily the right organization. And it is also interesting, I mean, this is my personal opinion, not HCL's opinion, it is also interesting that when it comes to our countries, our comments, pro-democracy are very, very articulate, and when it comes to our companies, we somehow forget democracy. We are very autocratic in the way we run our companies. We are very command and control. I find it difficult to understand this disparity in most of us. But forget that for a minute. How can you have an organization structure which is not command and control. Now command and control has its advantages. You do not want to give that up. So you have to create a virtual organization to be innovative, to drive innovation and that virtual organization can get created through communities of interest, so what we are trying to say to our organization is, forget about hierarchy when it comes to creating value or creating innovation. We will create virtual communities of interest, 13 of them we have already created now. We will create virtual communities of interest where you take responsibility of owning those communities and you ask for funding and you start driving those innovations and ask for funding and we will fund them, and you drive the next generation innovation and those communities would not confirm to any hierarchy. So whether you are in Chennai or you are in US, whether you are a part of engineering services or you are part of software services, it doesn't matter. Whether you are in financial services or you are retail, you can collaborate by this destroyed hierarchy in a form and shape which we have not seen before. And that is going on to the brand of destroying the office of the CEO which basically, saying is all this innovation going up and one man taking the decision of what is good and what is bad for the company is all wrong, and therefore we have to have the concept of virtual communities who decide, debate, and decide what is good for the organization in their own interest and drive the disruption going forward and that's the tenth area which we are significantly, really investing in.

So with these ten investments, where are we going? Where is this company going? My belief is that to understand HCL you have to see HCL in its 30-year history span. The 30-year history span tells you that HCL is a very proud company. If there is one thing which gets associated with HCL, it is the pride. Why pride? Predominantly, because we come from the product engineering background. Shiv talked about the fact that we used to spend 50% of our revenues into engineering and hope the product will sell. Most of us have the mindset of the fact that if we decide to do something, we would make it happen. That commitment of make it happen is very, very strong, because, when we were early in the early younger years of HCL. I joined HCL when it was four million dollars of revenue. We didn't have a choice, but to make it work. So every time, we worked, we had to make things work and that slowly became the culture, which surrounded the whole company. If you commit, you have to make it work. Now once that commit to make it work came in, the pride came in automatically; because whatever we would commit, we would commit more than we would deliver. We could potentially think in that particular time, when we will stretch ourselves to deliver more and more. You take this global customer meet. Every year, the only conversation which happens is how are we going to better this next year and you would be amazed that I was walking in the conference and there are five or six guys already discussing how do we make it better next year and I told them the conference is not over. So that's the culture of the organization and that brings pride in the organization. That is what drives pride in the organization. I believe that whole pride is what we have leveraged growth in the last 30 years. The reason, we are one of the surviving companies and a lot of companies have fallen off in the last 30 years in IT industry. You will see very few companies that have survived is that pride keeps driving disruption in our organization, that pride keeps driving innovation in our organization, that pride keeps driving excellence in our organization and that pride keeps driving relationship, partnership, all those things driven by pride and that is what we are really proud of. So we are proud of our relationship. We are proud of our association and we are proud, very, very proud of what we are as a company. Why is that relevant for you? The reason it is relevant for you is that in partnership as I said in the beginning, when you are looking for extracting value from HCL from all the services you must understand that that is the core value which HCL brings to its table. Leap of faith is what Shiv said appropriately, I would say it definitely in the sense that we do not have everything and not everything what we do works. We have more holes than I can imagine or even talk about. There are more things we get wrong than right. All those are truth, but the only company which is working, which is honestly admitting them and really working on them is HCL. And I think every single HCList, there are two things which are very important, cultural attributes of him. He is honest, not honest with you, honest with himself of what we can and what we can't do. We don't try and hide it and that comes internally. It comes from me when I screw up. I screw up more things than I get, but it comes naturally in the organization culture and therefore when you try and build this partnership with HCL, trust is very important. Trust is mutual on both sides. So trust us, because we are very proud of what we commit and we are going to work very hard to try and get that right and that's going to be an important tenet to try and get this relationship to the next level.

So how do I end this? I end this with a request to you. You have supported us. Without your support, I do not think we would have grown over the last two years at 40% year on year and become the fastest growing IT services company. I do not believe economist will write to us that IBM is scared of us. I do not believe that disruption force, IDC will call us the most disruptive force in the IT landscape. Fortune will not call us the most modern management and Howard will not do a business case study on us had it not been for your support. So the first thing I request from you is continue supporting us and your support is very critical for us to continue disrupting this way forward.

There is a second request which I have, which is our journey from here to 2010. I believe HCL doesn't want to be in the IT services business alone. That is very critical. I think the next generation of HCL is about something else and that generation is that the fact that we want to be known for thought leaders not only in what we do but how we do things and the how we do things is very important to next generation HCL whether it is our employee services or delivery capability or whatever it is, we want to spread that message. We want to take those best practices and spread that best practices and spread that thought leadership into the world market and there is where I need your help. So I want to you, over the period of time, to get more and more exposed to some of the innovative practices we have, the value framework, the HR policies or asset frame and methodologies, and we are very happy to propagate that into the market space and get that adopted as standards within the organization. I want you to look at HCL a lot more than only an IT services company, also is a thought leadership of the companies which is innovating on how things are going to be handled. It's a big bold statement but I always think about it and I'll share that with you. The last idea which originated our India and changed the world was the idea of nonviolence, and we believe that there is time for India to generate one more idea, which will disrupt the way people work or disrupt the way people do business. Now would that idea come from HCL is the passion within HCL and we believe it should, and would that idea be whatever we are discussing today. I don't know but that is the long-term vision of HCL that we not only want to be known as the most valued company but we also want to be known as a thought leader and hopefully contribute to a new way of thinking and a new way of doing things in the world space. Thank you very much dear friends.