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HCL helps a Leading ISV revitalize its Product Line and Make it Competitive through a Degree Global Risk- Reward Partnership

HCL helps a Leading ISV revitalize its Product Line and Make it Competitive through a Degree Global Risk- Reward Partnership

Key Drivers

  • Client's Threat Management Products were lagging in comparison to the bigger and more focused competitors - declining revenues, feature set, poor customer retention rates and dissatisfied customers were some of the issues


Solution Highlights

  • HCL proposed to completely own the product line as part of its "Global Risk and Reward Partnership (GRRP)". The proposition leverages HCL's strong product engineering heritage and track record and a willingness to absorb risk through proven business models.
  • The partnership covers all threat management products, which include antivirus, anti-spyware, integrated threat manager (ITM), host-based intrusion prevention system (HIPS), secure content management (SCM), internet security suite, anti-spam and firewall.


Solution Details

  • Due Diligence and Solution framework
  • Enhance Revenue through R&D intensity - Develop new and adjacent products to enhance existing product-line
  • R&D and Support - Involve client engineering teams with HCL team to develop a world-class R&D team. This is manifested by a complete ownership by HCL of the client’s global teams.
  • Increase profitability by moving to a completely variable cost model - An organized global program management structure and lower royalty payments and external consultant fees
  • Re-badging - Rebadge 375 client employees from US, Australia, Israel and India onto its staff which includes developers, quality assurance and technical support and 50% of the product management employees
  • Royalty responsibility - HCL will own complete responsibility associated with royalties


Early Benefits

  • HCL has taken over US$ 40 million of cost from client books
  • The operating margins have grown from -5% to more than 20%
  • 10% growth in NCV


Customer Appreciation

"The way our partner HCL makes money is based on our revenues, HCL has as much skin in the game as we do. That is why this is a win-win. This is not an outsourcing deal. This is a strategic relationship." - Channel Chief, Partner's Organization

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