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HCL Technologies SWOT and PESTLE Analysis

ID : 52811853| Feb 2023| 15 pages

COMPANY PROFILE -HCL Technologies

Business Sector :Information Technology

Operating Geography :India, Asia, Global

About HCL Technologies :

HCL Technologies Limited, an Indian multinational information technology (IT) services and consulting company was founded in 1976 by Shiv Nadar and Arjun Malhotra. It is headquartered in Noida, Uttar Pradesh, India, and is a subsidiary of HCL Enterprise. Originally a research and development division of HCL, it emerged as an independent company in 1991 when HCL entered into the software services business. HCL Technologies has workplaces in 44 countries including United Kingdom, United States, France, and Germany with a worldwide network of R&D. It has approximately 150,000 employees in across 46 countries as of 2020. HCL Tech operates across a number of sectors which include aerospace and defense, automotive, banking, capital markets, chemical and process industries, energy and utilities, healthcare, hi-tech, industrial manufacturing, consumer goods, insurance, life sciences, manufacturing, media and entertainment, mining and natural resources, oil and gas, retail, telecom, and travel, transportation, logistics & hospitality. The Forbes Global 2000 list includes HCL Technologies. A few products of IBM were acquired by HCL Technologies on 1 July 2019. HCL Technologies successfully took the full ownership of sales, marketing, delivery, research and development, along with support for Commerce, BigFix, AppScan, Connections, Digital Experience, Unica and Notes Domino. Establishments of HCL Technologies inlude Australia, China, Hong Kong, India, Indonesia, Israel, Japan, Malaysia, New Zealand, Saudi Arabia, Singapore, South Africa, the United Arab Emirates and Qatar. On 16 June 2020 HCL Technologies announced that it had commenced operations in Sri Lanka. HCL Technologies was awarded with the ‘Proactive Customer Service 2020 Microsoft Partner of the Year’ Award.
The Unique Selling Proposition or USP of HCL Technologies lies in it being among the top 20 largest publicly traded companies in India while having it’s operating offices in 44 countries throughout the world while it’s customers include 250 of the Fortune 500 and 650 of the Global 2,000 companies.

HCL Technologies Revenue :


INR 71,265 crores - FY ended 31st March, 2020
INR 61,370 crores - FY ended 31st March, 2019

Competitive Analysis of HCL Technologies

SWOT
PESTLE
The SWOT analysis for HCL Technologies is presented below in a table followed by the detailed analysis report.
StrengthsWeaknesses
1. One of the leading growing global technology companies
2. Focus on marketing and brand building for enhancing its industry leading growth
3. Consistent financial performance in the recent past
4. Focus on Frontline Innovation and Diversifying its Differentiation
5. Strong digital partner ecosystem
6. Strong R&D - largest Indian heritage engineering service provider
1. Dependency on economies of America and Europe comprising around 85% revenue
2. Lack of significant contribution to future earnings from acquisitions
OpportunitiesThreats
1. Convergence of business opportunities in IT services
2. Expansion in countries like Sri Lanka to leverage workforce
3. Digital transformation adopted globally across industries
1. Impact of COVID-19 on Indian IT Industry
2. Legislation restricting the availability of work visas
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of HCL Technologies

Strength

1. One of the leading global technology companies: HCL Technologies is one of the leading global technology company operating in around 44 countries. It employs around 147,000 ideapreneurs as of 2020. The Company differentiates itself with other companies cause of its expertise in various fields. The IT major specializes in Product Engineering DNA and maximizes its scale in digitalization. The strategy of best in class delivery capabilities, a strong innovation ecosystem and above all, the passion of its talented employees has been showing results for the company as it witnessed a growth at a CAGR of 14.1% between FY17 and FY20. The strong partnership ecosystem and innovative business constructs helps the company reach heights of success. The company also believes in maintaining a relationship beyond the contract and hence is respected by all its customers and clients alike. In terms of analyst recognitions, fiscal 2020 was an outstanding period for HCL, as it retained and expanded its leadership positions in 207 competitive evaluations.

2. Focus on marketing and brand building for enhancing its industry leading growth: HCL continues to promote and position its business in a holistic manner which will help in enhancing the industry leading growth of the company. This also helps in increasing brand value while deepening the relationship and experience with clients and various stakeholders. It empowers HCL’s client partners and sales potential to maximize their potential and perform even better. The company works towards strengthening the value propositions. The IT major has been doing this by generating demand through systematic digital campaigns, simplifying and enriching client buying journeys and attracting new clients at scale. HCL also has its inhouse digital and creative agency i.e. Center for Design and Experience (CODE) providing additional support to the company.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threats

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

SWOT & PESTLE (combined)
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?

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References used in HCL Technologies SWOT & PESTLE Analysis Report

1. HCL Tecnologies Analyst Day 2019 - https://microsite.hcltech.com/Analyst-Day-2019/presentations.html
2. HCL Emerged As The Fastest Growing Large Technology Company For The Fourth Consecutive Year - https://www.hcltech.com/hcl-annual-report-2020/
3. HCL announced results for FY’21 second quarter on October 16, 2020 - https://www.hcltech.com/investors#
4. HCL Technologies commences operations in Sri Lanka; to leverage the country’s IT workforce - https://www.hcltech.com/press-releases/press-releases-business/hcl-technologies -commences-operations-sri-lanka-leverage
5. The whole digital transformation opportunity is big, growing: HCL Tech CEO - https://www.business-standard.com/article/companies/the-whole-digital- transformation-opportunity-is-big-growing-hcl-tech-ceo-119051000021_1.html The detailed complete set of references are available on request in the 'Complete report' on purchase.

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HCL Technologies SWOT & PESTLE analysis has been conducted by Sushree Lasyamayee and reviewed by senior analysts from Barakaat Consulting.

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