HCL Technologies Annual Report 2022-23
IT and Business Services (ITBS)

Through ITBS, we help global enterprises drive business transformation by providing a wide range of solutions in applications, infrastructure, digital process operations and next-generation digital transformations.

75+ of Fortune 200

  • Leadership in cloud transformation
  • Pioneering in integrating and transforming application and infrastructure services
  • ‘Differentiated Challenger’ in apps and data modernization
  • Participation in chosen areas of digital process operations

$0B+

Addressable market


$0Cr

FY23 revenue


$0%

FY23 growth in constant currency (YoY)

Building the Resilient Digital Enterprise

Digital Business Services

Digital Business Services enables enterprises to adopt new technology architectures, reimagine ways of working and use data and analytics to achieve operational excellence and fundamental business transformation.

What differentiates us

  • Experience in complex journeys of business and IT operating model transformation by scaling agile delivery and organizational change management
  • Unique strength in integrating and transforming application and cloud services
  • Value chain transformations through application and data modernization, cloud adoption, analytical insights and AI, with a focus on customer and business experiences
  • Strong 360o relationships with our ecosystem partners such as Salesforce, Snowflake, SAP, Microsoft, AWS, Google (GCP) and others
  • Global scaling capability of digital talent

Our digital business, provides industry-specific technology solutions to transform clients’ value chain through the use of technology. We carry out our services via three main focus areas:

Consulting Services

  • Experience and technology strategy and design to develop innovative solutions that serve the unmet needs of clients, employees and users
  • Business process re-design/optimization that allows customers to reimagine their enterprise value chains
  • Agile delivery transformation through operating model change
  • Organizational agility to orchestrate effective change management within the enterprise

Application Modernization Services to help customers architect and modernize their applications and platforms via composable architectures, micro-services services and cloud-based application consumption.

Data and Analytics Services to modernize and/or build new data platforms, build scalable data architecture with robust data governance and drive actionable insights through machine learning and artificial intelligence.

Our services focus on the following main industry segments: Financial Services, Life Sciences and Healthcare, Manufacturing, Retail, Telecom, Media and Entertainment, Technology and Public Services.

In FY23, we continued to see strong growth in the following areas:

Industry-specific Value Chain Transformation: Customers focused on supply chain transformation, omnichannel modernization and transforming customer experiences across business-to-business (B2B), business-to-consumer (B2C) and business-to-business-to-consumer (B2B2C) interfaces.

Operating Model Change: The trend of customers moving from project-based to agile-product-oriented organizations continued in FY23 with customers also moving toward cost efficiencies through vendor consolidation.

Technology Modernization: Customers continued to leverage our services in adopting SaaS solutions and adopting cloud ecosystems. Notably, our enterprise package/SaaS and cloud eco-system business grew strongly in the Salesforce, SAP, Oracle, Workday and the Azure, AWS, GCP and IBM ecosystems.

From an industry perspective, the telecom, manufacturing and hi-tech sectors delivered particularly strong growth while North America and Europe regions continued to lead the growth from a global perspective.

This year, our ESG proposition saw wide acceptance with large enterprises, from integrating ESG practices into supply chains to focusing on green IT and reducing carbon footprint. We implemented an industry-leading ESG platform for a large F100 aerospace company to help with global compliance. Similarly, for a leading European customer, we worked on a smart energy solution to help with carbon footprint reduction.

Our development of nearshore execution capability expanded in FY23, especially in Eastern Europe and Latin America, and will continue to grow robustly in 2024 through additional local and nearshore delivery hubs.

We continue to have a robust partner ecosystem and added 10 new partners this year. We are now one of the largest Snowflake partners. We continue to hold toptier partnership status with Adobe, Snowflake, Tibco and Alteryx as well as the highest level of partnership tier with Salesforce this year.

In FY23, Digital Business delivered a robust 18% growth. Our bookings were stronger than the prior year. With the global macro-conditions, we did see a gradual slowdown and delay in discretionary spend toward the second half of the year. However, with our strong booking trend and the wider customer shift to vendor consolidation deals driven by cost optimization, we remain buoyant about growth for FY24.

Client Perspectives

HCLTech is a partner of choice for NatWest for leading digital transformation initiatives. We partnered with HCLTech to drive forward NatWest’s strategy of becoming a relationship bank for the digital world, and to support us in the delivery of our retail banking digital customer journeys. HCLTech has been instrumental in bringing in strong technical competence to accelerate the progress of our strategic digital propositions and has delivered immense value to our customers and wider stakeholders through successful deliveries within the EveryDay Banking domain.”

Shalini Arora
Director, Everyday Banking, NatWest Group

HCLTech enabled Pentagon Federal Credit Union’s digital transformation journey by creating an end-to-end digital platform and driving business growth.”

Shashi Vohra
Senior EVP & President, Affiliated Businesses, Pentagon Federal Credit Union

The engagement with HCLTech has helped us to launch a transformation from a project model to a product model using agile methodology. Through this initiative, we are delivering greater value to our business stakeholders through a closer alignment and more rapid delivery of technology solutions to business challenges.”

Bill Pomerleau
Director, IT Vendor Management, Land O’Lakes Inc.

It’s been a pleasant experience being at the HCLTech Noida innovation lab. The energy, ideas, people and the conversation have been eye-opening. Very happy to know how much HCLTech is investing in innovation. Pearson VUE takes pride in innovation, and it’s wonderful to know the potential of future together as partner.”

Farzana Ashraf
Senior Vice President, Product & Technology, Pearson VUE

We continue to see HCLTech show up as a strong strategic partner as we push for digital transformation and growth across our utility. Love how they continue to build their bench in ways to supplement our work across critical customer areas, with velocity so that we can quickly deliver value for our customers.”

Ryan Ogilvie
Division Chief Information Officer, Portland General Electric

Analyst Perspectives

IDC MarketScape: Worldwide Adobe Experience Cloud Professional Services Vendor Assessment

HCLTech has a number of key intellectual property assets to help its clients drive value from Adobe technology, including Advantage Suite with Advantage Experience that helps clients accelerate their Adobe Experience Cloud transformation journey; Industry Playbooks and Process enablement toolkits for multiple industries; FENIX 2.0, an industry-aligned execution framework that helps organizations rewire their core DNA to realize digital transformation objectives; Nexus Consulting, a framework for human-centered approach for end-to-end customer experience transformation that helps client from strategy through execution with focus on business outcomes.”

Douglas Hayward
Research Director, IDC

IISG Provider LensTM Oracle Ecosystem U.S. Region

HCLTech’s consulting services offer business insights, with the company’s industry experience. Its implementation services help adopt, accelerate and gauge Oracle Cloud journey. Its Service-oriented Oracle support ensures resiliency, reliability and predictability.”

Arun Kumar Singh
Senior Manager & Principal Analyst, ISG

IDC MarketScape: Worldwide Manufacturing Intelligence Transformation Strategic Consulting 2023

HCLTech provides intelligence transformation strategic consulting services across the manufacturing value chains, including projects supporting product design/innovation, customer relationship management, supply chain planning and execution, enterprise quality management, plant/ operational performance, asset performance management and field service.”

Reid Paquin
Research Director, IDC

Partner Perspective

As enterprises increasingly compete on customer experience, our Platinum partnership with HCLTech plays a key role in accelerating digital transformation for our clients. HCLTech’s Ad\vantage Experience platform uses AI and ML to enable clients to realize the value of Adobe Experience quickly at scale, helping them gain a competitive edge.”

Justin Merickel
Vice President, Business Development, Adobe

Digital Foundation

Digital Foundation forms the backbone of digital transformation journeys, offering core infrastructure services and next-generation digital solutions. We have 500+ active customers spanning various industries and serve as a trusted advisor and partner to 40% of G100 companies, helping them manage and transform their large and complex environments.

Differentiators

  • Trusted advisor and partner for managing and transforming large and complex environments
  • Market leadership in UX-based service delivery to end users
  • Forefront of evolving talent needs
  • AI, ML and hyper automation–led service delivery at scale

Key Wins

  • A leading toy manufacturer selected us to drive transformation across global technology landscape cutting across applications, infrastructure and information security domains and move it to a product IT operating model.
  • A healthcare services company selected us to build and run a hospital-aligned clinical service desk for physicians and support staff.
  • A global leader in health, nutrition and bioscience selected us to transition to a product-based IT operating model, underpinned by a cloud-first strategy and next-generation security practices.
  • A leading provider of auto, home and commercial insurance has selected us to reimagine their IT service desk and infrastructure operations.

Outlook in the Medium Term
Despite market forces, we see strong customer demand as IT services spending is projected to rise by 5.5% in 2023. Traditional segments seek automation and cost reduction, while growth segments such as cloud, employee experience and cybersecurity offer scaling opportunities. With accelerated growth in existing clients, we aim to capture 95% of all Digital Foundation spend and anticipate a $100 billion renewal opportunity. Our partnerships with hyperscalers fuel our 2X market CAGR growth across cloud services. We have invested in new frontier geographies and anticipate accelerated growth across these areas.

Digital Foundation Business Strategy
We are driving various short-term and medium-term strategic initiatives to propel business growth:

1

Value Generation for Clients

We are committed to bringing together the best of technology and our people to supercharge progress. We measure value delivered to clients annually through systematic programs. During FY23 we clocked $2 billion in value generated for clients.

2

Evolving Business Mix

We are committed to growth across services such as cloud, employee experience, nextGen networks and cybersecurity.

3

Taking Thoughtful Big Bets

We’re making investments in state-of-the-art innovation labs and regional delivery centers and are also evaluating multiple inorganic options that provide us access to capability and geography play.

4

New Frontier Expansion

We have taken a strategic decision to invest in new frontier geographies and we’re anticipating accelerated growth across them.

5

Strong Partnership with OEMs and Hyperscalers

Partnerships are fueling our growth by 2X of market CAGR in cloud services. We are also a managed services and professional services provider for leading OEMs.

6

Investing into our Future Talent Pool

We are investing in future talent pool and have identified various skill sets which can help us grow in the long term.

Analyst Recognitions
Leading analysts have consistently rated us as the leader across all Digital Foundation towers.

  • We are the only services provider to be rated as leader in all Gartner Magic Quadrants for Digital Foundation.
  • In the public cloud IT transformation, we are the only Indian heritage service provider to be recognized as a leader for two consecutive years.
  • We have been rated as a leader in the Gartner® Magic Quadrant 2022 for Public Cloud IT Transformation Services, Outsourced Digital Workplace Services and Managed Mobility, Managed Network Services, DC Outsourcing and Hybrid Infrastructure Managed Services.

Analyst Perspectives

Everest Group PEAK Matrix® for IT Security Service Provider 2022 – North America

HCLTech’s investments in augmenting its cybersecurity consulting services under its Fortius brand and expansion of Cybersecurity Fusion Centers (CSFC) to new geographies have resonated well with enterprise buyers. Clients have appreciated HCLTech’s domain knowledge and its ability to contextualize services based on client requirements.”

Kumar Avijit
Practice Director, Everest Group

Everest Group’s Digital Workplace Services PEAK Matrix® Assessment 2022-North America & EU

HCLTech’s focus on employee experience management, XLA-embedded pricing constructs, verticalized solution portfolio, and strategic partnerships with established as well as niche vendors to diversify its digital workplace portfolio have contributed to its position as a leader, have also appreciated HCLTech focus and investments in employeecentric solutions and its overall client management capabilities.”

Udit Singh
Practice Director, Everest Group

ISG Provider Lens™ Public Cloud Solutions and Services 2022 – Global – Multicloud FinOps Platforms

HCLTech is one of the very few service providers that has a dedicated FinOps platform offering through which it has helped several enterprises to reduce their cloud bills significantly.”

Shashank Rajmane
Principal Analyst, ISG

ISG Provider Lens™ ServiceNow Ecosystem Partners 2023 – US Region

HCLTech has strong capabilities and resources and coinnovates with ServiceNow to deliver industryspecific value propositions.”

Dr. Tapati Bandopadhyay
Lead Analyst, ISG

Client Perspectives

Having productive and happy employees means we continue to delight our customers. Therefore, we must proactively maintain and manage our digital workplace environment. Working with HCLTech will enable us to leverage the true power of intelligent automation to drive growth and enhance employee experience.”

Punit Jain
Chief Technology Officer, AMEA, Global Digital Workplace Lead, Mondelēz International

We were extremely selective about our preferred digital transformation partner and HCLTech, with its proven track record in delivering flexible and resilient IT systems, fits the bill. We have been impressed by the pace and scale of its delivery and are looking forward to cooperating with HCLTech.”

Oliver Neubrand
Chief Financial Officer, Heubach Group

Digital Process Operations

Digital Process Operations (DPO) helps clients adapt to the digital age by combining HCLTech’s process domain expertise, engineering capabilities and diverse software and technology stack.

DPO is uniquely positioned to capitalize on the changing business dynamics and new growth horizons. HCLTech’s DPO is a next generation global business operations unit that thrives on helping enterprises reimagine their business for the digital age. Our integrated ‘Technologyled Digital Operations’ model reimagines client’s operations across three broad digital stacks around digital workforce, digital process and digital technology. These stacks determine the velocity and magnitude of business success an organization achieves.

Digital Workforce
The digitalCOLLEAGUE is HCLTech’s domainintensive, role-based, single-UI platform, which works in collaboration with the human workforce. The digitalCOLLEAGUE (dC) platform, powered by emerging transformation technologies, collaborates with humans to create a truly Digital Workforce. This human-machine collaboration enhances business operations, improving top line growth, cost efficiency, customer satisfaction and return on asset investment.

Digital Process
DPO deploys its ReOPS framework to drive transformation and business processes. This framework enables the identification, simplification, standardization and automation of processes through a data-driven approach. With its proprietary 3-lever BPM approach and AI-powered tools, it helps enterprises create digital target operating models and leverage comprehensive process blueprints for effective process discovery and orchestration.

Digital Technology
DPO leverages the Enterprise Function as-a- Service (EFaaS) model to provide on-cloud solutions for organizations seeking cost reduction through business process optimization, application platform standardization/modernization and utility-based models. With EFaaS, we implement top technologies, deliver operational services and ensure integrated SLAs in a flexible cost model.

HCLTech DPO serves over 100 clients across industries, including many Fortune 500/Global 2000 organizations. With state-of-the-art delivery centers across India, Europe, Ireland, Latin America, the Philippines, the U.S. and the UK, the unit leverages its Integrated Global Delivery Model (IGDM) to provide clients with best-in-class services.

Last year, DPO signed multi-million-dollar transformation deals with some of the biggest brands across industries. In one such engagement, it set up a large digital shared services hub for a leading independent software vendor (ISV) major, providing them with global cloud sales and support services. Besides new clients, DPO successfully renewed and expanded its relationship with existing clients, providing them with transformation-led digital services across front, middle and back-office functions.

Building on this spectacular growth over the years, our strategy and vision for FY23 and beyond will focus on multiple critical areas:

  • Develop differentiated verticalized value propositions through strategic investments in IPs, CoEs and leveraging partner ecosystems to offer superior client value–i360 order-to-cash offering for manufacturing and oil & gas verticals backed by large-scale implementation in one of the Fortune 10 oil & gas company and a digital and print manufacturing leader.
  • digitalCOLLEAGUE offering – we continue to invest in new technologies like AI, data analytics, cloud and platform-based services. A significant part of this investment would also focus on training our employees on these new technologies.
  • Continue creating custom target operating models and engagement constructs driving the right balance of control, cost, flexibility and risk. DPO has executed varied engagement constructs, including joint venture, carveout, build-operate-transfer, assisted captive, hybrid, pure-play third-party outsourcing and co-sourcing models, in vested contracts for higher skin in the game to deliver financial and business outcomes.

Analyst Recognitions
All our efforts are getting recognized by the global analyst and advisor community as we gain significant industry mindshare vis-à-vis competition. We have been ranked as leaders across our chosen areas of play:

  • Leader in ISG Provider Lens™ Finance & Accounting Outsourcing Services 2022
  • Leader in ISG Provider Lens™ Quadrant study on Procurement BPO and Transformation Services, 2022
  • Leader in Avasant Intelligent Document Processing Platforms 2022 RadarView™
  • Leader in Everest Group’s Artificial Intelligence (AI) Services PEAK Matrix® Assessment 2022

Analyst Perspectives

HCLTech’s focus and continuous improvement in building an expanded FAO portfolio have positioned it as a leader in four of the most critical pillars of finance and accounting. Further, HCLTech has extensively leveraged its domain knowledge to build a digitally enhanced FAO portfolio, including modular solutions with in-built automation such as digitalCOLLEAGUE.”

Namratha Dharshan
Chief Business Leader, ISG India Research

HCLTech has made substantial and very effective investments in technologies, tools, partnerships, delivery, and support that advance it as a leader in procurement BPO and transformation for large enterprises and midmarket firms alike.”

Bruce Guptill
Executive Advisor, Global, ISG

In the past 12 months, demand for intelligent document processing (IDP) platforms has accelerated in order to facilitate straight-through processing of complex data types and achieve higher data processing accuracy. HCLTech is meeting this enterprise need through a patented intelligent character recognition engine that can detect complex data such as barcodes, signatures and stamps. It is filing more patents to enhance its artificial intelligence and machine learning capabilities for handwriting detection, forgery and tampering with checks. It augments these capabilities through its proprietary IDP platform, EXACTO™, which can extract and classify data from more than 16 languages and detect over 35 file types.

HCLTech is a prominent player in IDP because of its focus on delivering experiential services through its Startup Ecosystem Innovation Platform & Program and its expansion in financial and manufacturing sectors through industryspecific use cases. These features have made it a leader in Avasant’s Intelligent Document Processing Platforms 2022 RadarView.”

Chandrika Dutt
Research Leader, Avasant

EdTech Business Services

During the year, we launched EdTech Business Services to power enterprise talent acquisition and mobility. Leveraging our 46+ years of experience, our primary objective is to assist governments, enterprises and educational institutions in establishing technology and talent skill academies through our Career Shaper Learning and Assessment Platforms.

The services catalog include end-to-end solutions to scale talent with predictability, and we support this objective by providing assessment centers, talent academy, talent transformation programs, EquITy Center of Excellence and advisory services.

The platforms encompass a suite of solutions for digital, cybersecurity, engineering, cloud and data science with customisable Now and Next™ learning programs based on talent cohorts. Built on SkillMesh™ framework, the assessments platform supports enterprises to standardize hiring, measure skills gaps to provide insights on core and adjacency skills of candidates.

Business Strategy With multiple platforms available in the market, our strategy is to support clients to acquire and retain talent through competency-based skilling and hiring. While most service providers focus on disseminating learning, our platform has been built to help learners acquire competencies for the next job level.
The business expansion strategy is to focus on HCLTech’s clients by leveraging our global sales network, while also reaching out to new clients and channel partners.

Key Highlights In the first year of operations, we have been able to win mandates from several Fortune 500 companies across industry verticals that include engineering, gaming, publishing, BFSI, healthcare and talent advisory solutions. We have also signed channel partnerships with Wall Street English, a global English language learning academy, and The University of Melbourne. We have been able to participate in the localization vision of a few governments, skilling sectorial councils and large organizations to shape their ideas on talent transformation.

Outlook for FY24 We will continue the momentum through global sales networks to establish connections with local government and educational institutions to skill talent with scale and predictability. We will also prioritize onboarding new G2000 customers and becoming their preferred partner for talent acquisition and learning.