HCL Technologies

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Project Report on Organizational Study of
HCL Technologies
Final Group Project Report
Submitted to:
Professor Israel Fortin
Organization Design
Term – 1
Submitted By:
Group - 11
D Mohanee - 2111015
Madhav Jhawar - 2111025
Himansu Rathi - 2111046
Reshma M N - 2111047
Shubham Kumar Sah - 2111050
Basani Aishwarya - 2117001
PGP 2021-23, IIM Bangalore

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Table of Contents
1. Introduction ...................................................................................................................3
2. Business and Product Portfolio......................................................................................4
3. Industry and Services.....................................................................................................5
4. Organization Structure...................................................................................................6
5. Organization Culture......................................................................................................9
6. Organization Strategy ..................................................................................................15
7. Joint Ventures, Partnerships & Acquisitions................................................................17
8. Environmental Uncertainty..........................................................................................20
9. SWOT Analysis..............................................................................................................22
10. Sustainability and Way Forward..................................................................................23
Type chapter title (level 2) .....................................................................................................5
Type chapter title (level 3) .................................................................................................6

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Introduction
HCL Technologies is an Indian multinational IT services and consulting company,
headquartered in India. Its parent company is HCL Enterprise. HCL was started by a group of
six engineers, headed by Mr. Shiv Nadar in 1976. Its initial business was to make personal
computers. Initially named as Microcomp Limited, Nadar and his team started selling
teledigital calculators to gather capital for their main product. It was later renamed as
Hindustan Computers Limited. The company then diversified its operations into other
sectors over the years. The current Chairperson of HCL is Mrs. Roshni Nadar Malhotra.
Vision: “To be the Best Technology Services Provider in the world”
Mission: “To provide world class information technology solution and services to enable our
customers to serve their customers better.”
Organization Evolution of HCL:

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Business and Product Portfolio
HCL provides a lot of smart products and services. some of them are mentioned below:
IT Infra: HCL is one of the most famous brands in IT infra sector. It is well known for
customer loyalty and carries a fruitful brand reputation.
Delivery excellence: HCL has experience and knowledge in designing and it is an outsourcing
pioneer today. It has speedy learning processes for amazing conveyance, on-time execution.
Business services: In current era continuous development, encounter driven environment
to achieve business results is very sought after. HCL is providing such solutions to various
businesses and helping them grow in their field.
DRYICE: With Leveraging Artificial Intelligence and Cloud Technologies to simplify IT and
business operations. These enable enterprises to operate in a leaner, faster, and cost-
efficient manner while ensuring superior business outcomes.

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Industry and Services
HCL Technologies promotes Glocalization; it has deep expertise in providing services to
varied industries ranging from aviation to insurance and has businesses running at local as
well as global level. Having setting up its mark in providing technical, financial, business-
related solutions, HCL has put its foot in every corner of industrial sector. It helps its clients
reimaging their businesses by transforming trending technology into innovative solutions
and thus using it as the major competitive advantage for this digital era. HCL aims to
maximize Return on Investment by mapping processes to applications, infrastructure, and
databases, thereby eliminating redundancies and cost overrun. HCL Technologies is involved
in following industries:
• Manufacturing: Aerospace, Aviation & Defense, Automotive, Chemical & Process
Industries, Hi-Tech, Industrial Manufacturing
• Consumer Services: Retail, Consumer Goods, Media & Entertainment, Telecom
• Life Sciences & HealthCare: Research Platforms, Digital patient care platforms
• Public Services: Energy and utilities, Mining & Natural Resources, Oil & Gas,
Travel, Transport, Logistics & Hospitality
• Financial Services: Banking, Capital Markets, Insurance

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Organization Structure
HCL Global Matrix Structure

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HCL Technologies is a multinational company with a strong geo presence in over 50
countries with employees of over 157 nationalities. Geo presence of HCL is mainly divided
into three main regions: America, Europe and Asia Pacific (APAC) / Middle East & Africa
(MEA)
The Business areas covered by HCL are follows:
Digital Operations: Digital Operations helps customer in organizing the process across an
enterprise digitally. The services provided by Digital Operations are Integrated IT
Operations, Process Operations and Cyber Security Fusion centers.
Digital Business: Digital business helps customer in understanding the business with their
technology solutions. They provide strategic tools to analyze data. The service includes
Digital Consulting, Applications, Data and Analytics and IoT Works.
Digital Foundations: Digital Foundations refers to Infrastructure Management Systems by
helping customers transform their business to the digital world. HCL provides services such
as Hybrid Cloud Services, Digital Workplace Services, Next-gen Network Services, Unified
Service Management, Cybersecurity and GRC Services.
HCL runs its business across all the regions and each company in a region emphasize a small
dimension of the overall goal. HCL works in a dynamic environment where the need for
digital world changes rapidly. HCL changes its product and service portfolio then and there
to achieve constant results. Hence from our observation, HCL follows a Global Matrix
Structure to cope up the fast-changing demands and need for resource sharing.

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Leadership:
The top management consists of Board of Directors with team of Executive Profiles in the
Top Management roles and Global regions across the globe working under them. The
Executive profiles broadly classify into two categories: Enterprise Leadership and Business
Leadership.
Board of Directors: The Board of directors in HCL represent the shareholders. The board
consists of 14 people with 77% independent directors and 31% women directors.
Executive Profile: The Executive Profiles consists of the Top Management people with CEO,
CFO and CHRO leading. Below them are the Executive Leadership and Business Leadership
group of Management people. The Management Hierarchy is provided in the Appendix-1
(Page – 20)
Structures of individual departments such as Finance, Marketing are provided in the
Appendix-2 (Page – 21)

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Organization Culture
Values and Principles:
1. Ideapreneurship – Putting employees at the forefront of innovation
HCL is very focused on innovation and is continuously working towards making its culture
more inclusive and empowering for all its employees to innovate and pitch-in their ideas –
any ideas which may create value for the customers. This form of corporate
entrepreneurship makes employees feel more valuable, independent and satisfied. This
bottom-up approach helps businesses enhance the value created for their clients as
employees who are working closely with the clients are more cognizant of the problems
faced by customers and are best placed to appreciate and understand the customers’
businesses and shape the roadmap to enhance the ‘value zone’ created in every interaction
they have.
The following tools enables the Ideapreneurship culture to bring about business impact:
Value Portal is a unique grassroot innovation platform that lets
employees contribute their ideas across hierarchical structures.
MAD Jam is a centralized platform for celebrating business-centric
ideas that have been implemented.
The Good Practices Conference (GPC) enables employees to put forth
their suggestions, in the form of discussion papers.
Intellectual Property monetization (IPM) encourages ideapreneurs to
submit innovative ideas which they believe can be patented.

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The above programs can be classified as the rites and ceremonies, a cultural value that
company follows to reinforce its specific values, create a bond among people and celebrate
heroes who excel in the firm.
2. Relationships beyond the contract
The Relationship beyond the contract is an engagement model that provides exceptional
service to the customers which makes them want to stay in business with HCL even after the
end of the current contract. HCL defines this approach as Unwavering customer centricity.
It has three main principles:
• Exemplary Customer Experience: The very basic promise of delivering as per the
commitment and make sure that customers are happy with the project results
• Strategic Flexibility: The biggest thing that HCL focusses on is that their solutions
should continue to provide strategic flexibility for the clients. HCL does not want to
build solutions which will lock-in their customers through assets, data centers,
technology stacks etc., instead HCL provides their customers the flexibility to exit.
HCL wants its customers to continue working with them because of the quality of
work that they do and not because of the constraints that are imposed by the
solutions.

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• Independent point of View: HCL considers its customers point of views and provides
them services which simplifies their technology choices. This part holds a lot of
significance because in a sea of choices, it is exceedingly difficult for most customers
to decide the best technology fit for their company needs.
We can infer that HCL follows Carnegie Model as the decision making does not rest on the
top management but on various managers/staff/client-facing executives as well as external
stakeholders and clients.
HCL has a Clan Culture which values and rewards innovation, creativity and risk taking. HCL
employees work like a tribe towards a common goal of maximizing customer satisfaction.
3. Diversity and Inclusion
HCL believes that Diversity is the most sustainable driver of innovation. It has been their
core guiding principles and a cultural differentiator that they are really proud of. HCL has
hugely focused on inclusion to maximize talent attraction, growth, and retention. HCL
defines the four pillars of Diversity and Inclusion as follows:

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There are various groups and networks that keep the conversation going and raise
awareness about various personal biases, groupthink (a phenomenon that occurs when a
group of individuals reaches a consensus without critical reasoning or evaluation of the
consequences or alternatives) and prejudices that people might have. HCL has established
various Employee Resource Groups (ERG) such as Pride@HCL, Women Connect Network
etc. to foster a climate free of bias, where equity and mutual respect are intrinsic.
HCL is a result-oriented company and has proved that it can walk the talk through its
achievements. HCL has been recognized for its diversity and inclusion initiatives by various
organizations.

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Corporate Social Responsibility:
HCL established its CSR arm namely HCL Foundation (HCLF) in 2011 with the aim of
positively contributing in the national and international developmental goals, uplifting the
lives of people through long term sustainable programs.
As stated on the company website, HCL Foundation’s core values are Credibility,
Transparency, Accountability, Outreach to the Unreached, Sustainability & Scalability.
HCL Foundation is currently involved in the following CSR activities:
1. Rural Development Projects – Budget INR 97.08 Cr
2. Improving the quality of Education – Budget INR 25.07 Cr
3. Promotion of Education & Livelihood Enhancement Program – Budget INR 21.55 Cr
4. Promotion of Healthcare and Sanitation Work – Budget INR 13.34 Cr
5. Environmental Protection Program – Budget INR 8.78 Cr
6. Disaster Relief Activities – Budget INR 4.96 Cr
HCLF’s CSR financial details over the years can be seen as following:

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CSR is the extension of the idea of managerial ethics. Customers, employees, and other
stakeholders pay attention to the ethics and social responsibility. CSR is a significant factor
in making up a positive image of the company in the broader society as well.
Culture Across Boundaries (Power Distance):

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Organization Strategy
HCL follows a Mode 1-2-3 strategy to help clients map and navigate through the vast variety
of products and services offered. This helps in transforming HCL into the partner of choice
for clients all over the globe. The three modes are as follows:
Mode 1 - Core Services: Mode 1 focuses on Agile and Lean centric services. The main
function of this mode is Service oriented. The services offered in this mode are
1) Application Services 2) Infrastructure Services 3) Engineering
4) Research & Development 5) Digital Process Operations
Mode 2 - Next Generation Services: Mode 2 focuses on insight and experience centric
services works on outcome-oriented results. The services offered in this mode include
1) Digital & Analytics 2) IoT Works™ (Internet of Things) 3) Cloud Native services
4) Cybersecurity 5) GRC services
Mode 3 - Products and Platforms: The Mode 3 focuses on Eco-system driven idea to
provide products and platforms to customers. It helps in innovative IP partnership activities
by providing modest goal driven strategic opportunities.
HCL pursues a differentiation strategy that has worked well in fighting off competitors and
creating a loyal customer base. HCL continues to enjoy a 95%+ customer retention rate.

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There are clients who renewed their contracts on four consecutive terms without even
considering a competitive rebid.
As we can see in the previous sections, HCL holds on to its past customers through its
engagement models which drives the higher customer retention rates and at the same time
it fuels innovation by empowering its employees and by consistently foraying into new
markets and taking risks. In Miles and Snow’s Strategy Typology, this characteristic can be
defined as Analyzer Strategy because HCL seeks to maintain a stable business while
innovating on the periphery.

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Joint Ventures, Partnerships and Acquisitions
For companies, the rationale for joint ventures, partnerships and acquisitions is to
accelerate their horizontal growth by broadening their customer base and provide the
company other linear growth opportunities such as geographical, client reach and cross
selling venues in the most effective way.
For HCL Technologies, the mergers and acquisition proved to be an excellent growth
strategy as it not only boosted the revenue and geographical presence, but also led to
margin expansion because of higher offshoring and reduced uncertainty in this competitive
arena of digital technology.
The company has expanded to over 1,60,000 employees across 49 countries, with women
constituting 26% of its workforce. The revenue has increased from Rs 47,568 crore in FY17
to Rs 76,306 crore in FY21, with a compounded annual growth rate (CAGR) of 14.1% over
the last three years.
HCL Technologies has been involved in Merger and Acquisition (M&A) deals with 19
companies, including 10 in the last 5 years. Following are some of the examples of these
deals. The detailed timeline of M&A can be found in the next page.
Joint ventures of HCL Technologies:
Beginning its journey of venturing from Perot Systems for acquiring its high value client base
back in 1996 to 2003 by setting up a joint venture with NEC, Japan (world’s leading provider
of internet services and enterprise business solutions) to provide offshore software

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solutions to not only NEC Japan subsidiaries but also globally and there by expanding its
market base.
HCL Technologies has also ventured with Jones Apparel Group, Inc (aiming for synergy and
rebalanced business portfolio and growth strategy) and M.A. partners (to address software
services opportunities in Global Finance Markets).
Acquisitions:
By acquisitions, HCL has not only expanded its market base globally but also accessed varied
technology and products which it did not previously had in its portfolio. Following are the
major acquisitions made by HCL Technologies:
• PowerObjects, US (to strengthen its position as a Digital Services Provider) in 2015.
• Butler America Aerospace, LLC (to strengthen its position in the Aerospace and Defence
Engineering Services industry of America) in 2016.
• DWS, Australia (augmented HCL’s capacity to service the growing demand for digital
strategies in the Australian and New Zealand markets) in 2020.
Partnerships & Tie Ups:
Partnerships and Tie Ups helped HCL Technologies to enter new domains and get
acquainted with foreign business lines, varied geographical cultures and access skills &
technological innovations. HCL Technologies has partnered with more than 15 companies,
few of them are listed below:
• Partnered with Talent & Pro to provide solutions in Banking, Insurance & Financial
Domain to Europe in 2005

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• Partnered with Cisco to open South Africa Centre of Excellence in Johannesburg in 2012
• Partnership agreement with Mosaic (to capitalize on its strong focus on the agriculture
business, mining and chemical segments in Latin America market) in 2021.

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Environmental Uncertainty
Framework for assessing environmental uncertainty has two main elements. It talks about
the change in environment, i.e., stable/unstable environment. And the other element is the
number of diverse external elements that affects the company, i.e., environmental
complexity. HCL is thriving in the Technology sector, and technology is changing rapidly.
That means that HCL works in a highly unstable environment. Since, HCL is a multinational
company and is working in various geographies, it has a lot of external stakeholders
including and not limited to governments, employees, partners and customers.
Adapting to a changing environment:
HCL has done a great job in adapting to the environmental uncertainty during times of
COVID and otherwise. Because of the non-mechanic/Organic Management processes in
HCL, employees responded & adapted quickly to the rapidly changing external environment;
horizontal coordination increased with the help of integrators and boundary spanning roles.
We can see this from the way HCL worked during the COVID-19 pandemic.

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Response to the COVID-19 Pandemic:
HCL’s response to the pandemic prioritized employee safety and well-being, minimizing
client impacts, and supporting local communities. This external change has led to many
technological and Product and service changes at HCL.
At the early stage of the outbreak, HCL realized the need for a command center dedicated
to covid. As a result of its strong innovative culture and employee autonomy, HCL data
scientists developed an AI-powered predictive analytics system to enable leaders to
respond quickly throughout the COVID-19 crisis.
HCL’s #OneHCL and #TakeCareHCL symbols created a sense of responsibility, unity and
inspired Ideapreneurs to go above and beyond to give back to the community and provide
the best services to their clients. HCL’s strong culture and its values have motivated its
employees to take part in Buddy Programs, where an employee network arranged essential
needs like food, oxygen, etc., to support their co-workers impacted by the pandemic.
HCL established a Crisis Management Program that helped shift 150000 employees to a
remote working environment. By implementing task forces HCL ensured work from home
program at scale and supported the employees by creating a robust company-wide supply
chain. It launched a 24/7 global helpline for free healthcare service to the employees and
their families, organized Digital workspace training modules. They have developed a Covid-
19 microsite to keep the employees informed about the pandemic response with the theme
#TakeCareHCL. As a part of #TakeCareHCL, it has launched Bot Powered Helpdesk, a
dedicated corporate response system, to support employees during COVID-19. By
implementing these approaches, HCL has shown that it adheres to its Employee-First
Culture even in times of huge uncertainty.

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Sustainability and Way Forward
HCL is a member of the United Nations Global Compact, the world’s largest corporate
sustainability initiative which encourages businesses and firms worldwide to adopt
sustainable and socially responsible policies, and to report on their implementation.
As people are becoming more concerned about the ongoing environmental degradation on
our planet, socially conscious investors have started focusing on sustainability and socially
responsible practices of the companies. HCL religiously reports its progress on these
initiatives through various reports such as Business Responsibility Report.
HCL has focused on delivering value to the community through its Environmental, Social and
Governance (ESG) goals and has earned various accolades for its contributions such as 2021
ESG Industry Top Rated Badge (by Sustainalytics), highest governance quality score of 1st
decile from Institutional Shareholder Services (ISS), ranked in India as one of the top 10
“Most Sustainable Companies” (by Sustain Labs Paris) and many others.
HCL tries to maintain its competitive advantage through strategic acquisitions of companies
offering similar services across industries. Further, to become future ready it has developed
various disruptive digital solutions to serve its clients, owing to its institutionalized
innovation culture in the firm. Despite the high technical complexity and with special focus
on specialization skills, there has been various horizontal coordination through full time
integration roles to deliver differentiated value to its customers. Not only services, but HCL
is also focused on coming with a suite of own products that will be an effect IT platform as
another offering to capture the software market.

HCL Technologies

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