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The materiality issues identified as High Significance helps us in ‘Shaping’ and ‘Facilitating’ our business responsibly while those in Medium Significance provides a ‘Balancing’ approach to managing our core IT solutions and operations.

Stakeholder Engagements

Our engagement approach is multidimensional. It encompasses identifying sustainability opportunities and implementing related activities through varying channels, levels and frequency of interactions and span of control in engagement and accountability. Details on Stakeholder Engagements are available in the Annexure section of this report.

In 2005, when HCLT began to assimilate the EFCS culture, it was the management that led the company along this transformational path. Today, HCLT’s 84,319 employees are powerful drivers of change who partner with the management at every step and steer the company toward the future. From a management-driven, employee-embraced philosophy, EFCS has transformed into one that is employee-driven and management-embraced, a testimony to the intrinsic nature of the philosophy. Our EFCS 2.0 phase represents this shift where employees have picked up the baton and are taking the lead for transformation. With a top management focus on reverse accountability to employees, grassroots empowerment and nurturing of a culture based on trust and transparency, HCLT is geared towards sustaining ability at every level.

Customer Engagements

We adopt a 360-degree approach in embedding value in all facets of the HCLT-customer relationship. With the support of an external agency, we conducted an annual survey on customer satisfaction (CSAT). In FY 2012 we had a participation rate of 66.3% with an overall improvement of 17% in CSAT Scores. HCLT’s top accounts also showed significant improvement in their respective scores.

Key expectations of our customers are being analyzed for implementation during FY 2013 more details of which are available in this year’s Annual Report.

In FY 2012, our Global Customer Meet in Orlando, Florida witnessed the participation of 1200 stakeholders. These engagements also help us identify focus areas for research and development. Details of research and corresponding strategies are available in our Annual Report for FY 2012.

Supplier-Vendor Engagements

Our procurement approach is guided by the purchase manual. The selection of vendors is based on a Equal Opportunity Policy and we do not discriminate any vendor based on gender, nationality, ethnicity, religion, disability etc. Vendors committed to upholding human rights and who operate keeping environmental issues in mind are given preference, while all other factors relating to quality and the competitive aspects of the quotes remain the same as others.

Vendors who are identified to have any unethical practices are removed from the supplier-vendor list. During FY 2012, we carried out an audit of vendor practises and did not identify any vendor who had violated the procurement contractual requirements.

We procure our IT equipments and software from vendors committed to sustainability. For non-IT resources, we strictly monitor the vendors for statutory compliance.

We audit the operations of our supplier-vendors at the time of renewing the contract including aspects of human rights such as child labour, right to exercise freedom of expression and collective bargaining as well as benefits that need to be passed on to their staff.

We have clear policies and competencies for recruitment and do not employ child labourers. Our administration team monitors the vendors for child labour compliance and there were no violations this year.

We also encourage employees to report any incidents on child labour in India-based locations to Facilities Management or a member of the Community Service Council or report violations through

During FY 2012, we identified 110 significant vendors and circulated the Whistleblower policy to them and have shared our commitment on upholding transparency and ethics in all transactions. The Ethics Dialogue forum is also available to vendors to share with us their concerns and best practises.

We ensure that the preference is given to local vendors for outsourcing jobs pertaining to facilities management, procurement of materials for infrastructure development and other operations. Approximately 95% of our vendors are local, thus majority of our spent is on local vendors resulting in creation of employment and economic opportunities in the locations that we operate. As part of our responsible operations, we continue to equip our supplier-chain community in India with knowledge beyond just their work through our Teach at Office program. More details on this are available in the Repay Society section of this report.

We are aware that it is important for us to audit our supplier-vendors in their own operational sites to identify any deviations in human rights guidance given to them. Beginning FY 2013, we want to set a taskforce for conducting periodic audits and helping our supplier-vendors to manage their operations in a manner compliant with human rights.

Snapshot of Everyday Innovations for Customers

Customer Situation Our Innovative Solution Benefits
Customer's e-business platform supported only restricted payment types across various geographies New payment system with the ability to accept contemporary payment modes across various geographies Increased revenue generation and potential to attract new buyers
Customer is a product company with a telecom customer who required seamless process flow and integration of custom scripts on a specific platform Corrected and implemented the solution through innovative coding Enabled customer to obtain new business through this solution
Customer required a manually-written query that took over 7 days to yield a response to be converted to a more user-friendly format Developed a user-friendly query language tool Enabled customer to receive a query response in less than 5 minutes thereby improving operational efficiencies and reducing costs associated with end-users
Customer required an internal HR application to replace their existing manual one Implemented an automated account management system Enabled customer to increase efficiencies and reduce operational costs

Infrastructure Development and Siting Approach

Our approach to identify locations to build and operate

The location for both leased and owned infrastructure/office operations are identified based on multiple parameters: our business model, access to human resources including our supply-chain community, well developed communication network by road, rail and air, and opportunities to enable us to contribute towards the development of society.

We prefer locations identified as Industrial Zones by the local Government for any infrastructure development. We comply with local laws for creating office facilities and did not record any fines for non-monetary sanctions for non-compliance with environmental laws and regulations. During mergers and acquisitions, we apply a due diligence process which covers verification of policies and practises on issues related to employees, human rights and environment apart from legal compliance checks.

We take care to ensure that there is no negative impact on the biodiversity of the regions we build in, and our operations do not have significant water discharge or spills.

Direct and indirect employment opportunities created

We provide indirect employment opportunities for local skilled and semi-skilled labour for support staff such as security, facility maintenance, transportation and travel personnel.

Investments made to develop the ecosystem

Diverse programs are run to create employee awareness and involve them in countering the effects of climate change. We focus on investing in green buildings, rainwater harvesting, new generation lighting and renewable energy. All our systems are energy efficient including the IT hardware used, and we received internationally recognized Environment and Safety certifications from reputed firms. The priorities of this focus are available in the Renew Ecosystem section of the report. For FY 2012, we have not tracked the total environmental protection expenditures by type as they are embedded in the larger facilities and infrastructure budgets of the Company. We did not pay any fines or faced non-monetary sanctions for non-compliance with environmental laws and regulations.

Social Media Approach

As a socially responsible business, we adhere to a responsible marketing model where digital marketing is at the forefront of our responsible marketing efforts. In FY 2012, we hosted a carbon-neutral Global Customer Meet with over 1000 participants. This was achieved largely by digitizing reach, communication and engagement. We believe that digital media, with its increased reach and effective content consumption mechanism is by far the most effective platform to create social awareness and highlight HCLT’s socially responsible initiatives. We are active on digital platforms with a consolidated reach (Facebook, Twitter, YouTube and Corporate Website) of over a million users. This reach is effectively leveraged to spread social awareness. For example there were 15K+ video views on YouTube Video for HCLT’s CSR initiative through an organic digital campaign.

We also have a dedicated section in our corporate website highlighting HCLT’s Socially Responsible Business Model-

In FY 2012, we released our Social Media Policy to ensure that from an organization perspective, we take a structured and standardized approach to social media participation, both from an individual employee and business level. Our internal systems and controls have been established to ensure compliance to applicable laws and regulations. To conduct our business ethically, our marketing programs adhere to the legal regulations of the countries we operate in. We did not record any complaints regarding breach of customer privacy, loss of customer data and non-compliance with laws and regulations concerning the usage of our products and services.

Contemporary Communication with IDEA Blogs

The former CEO interacts with employees through his blog and internal and external networking sites. The blog is updated regularly and features posts on leadership theories, management practices and developments in innovation and technology. We have shared some of his blogs on sustainability-related topics in this report.

The Engineering and Research and Development Services (ERS) and Telecom, Media, Publishing and Entertainment (TMPE) Business Units blog on innovation at and respectively.

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