HCL Tech eyes growth via engineering services
BANGALORE: IT major HCL Technologies is focusing on driving growth through engineering service outsourcing with many global corporations giving out contracts for design and research and development in sectors such aerospace, telecommunication, automotive, semiconductor and consumer electronics.
“We are seeing a healthy pipeline of contracts in engineering services. Currently it accounts for 17% of our revenue and is a major growth driver,” said GH Rao, president, engineering services outsourcing, HCL Technologies.
With over $900 million annual revenue, HCL Technologies is the largest Indian engineering outsourcing company and sixth largest in the world, he said.
According to Nasscom estimates, India’s engineering R&D exports last financial year was $12.4 billion (`75,230 crore) and is estimated to be $40 billion (2.4 lakh crore) by 2020. While captive R&D centres of multinational technology companies account for 50% of these exports, the rest is made up by engineering service providers.
“We have over 300 customers of which 55 are among global top 100 R&D spenders,” said Rao. “We see opportunities in areas such as healthcare. With the US healthcare industry facing cost pressure they are looking to outsource many such works to us.”