HCL is short for IT. HCL Technologies is one of the top five-largest offshore IT service providers in India. It offers a variety of technology consulting services, including application and enterprise consulting, infrastructure management, and product engineering. The company also provides management services for customer contact, technical support, and other outsourced business processes. HCL Technologies boasts a diverse customer base that includes Boeing, General Motors, Microsoft, and Xerox. It has offices in more than 25 countries, but earns more than half of its revenues from customers in the US. HCL Technologies is the sister company to computer manufacturer HCL Infosystems.
HCL Technologies earns the majority of its revenue from software development -- designing, testing, and implementing platforms across a range of industries, including aerospace, financial services, insurance, media, retail, and telecom. Business process outsourcing (BPO), operated through its HCL BPO division, accounts for about 15%. HCL BPO operates from 21 locations in India, the UK, and the US. HCL Infrastructure Service Division (HCL ISD), its fastest-growing division, accounts for about 10% of revenue.
HCL Technologies sold its telecom expense management services business, known as HCL Expense Management Services to Tangoe in early 2011 to focus on its core businesses.
The company's diverse customer base is one of its biggest assets -- its top five customers accounted for 17% of sales in 2010, down from 27% in 2008. Its largest new contract in 2010 was a five-year, $500 million contract with existing customer Merck for software, remote infrastructure management, and BPO services. The projects will employ the "near shore" model, managed out of HCL Technologies' office in Raleigh, North Carolina, headed by US engineers, and then farmed out to other locations, including Brazil, China, and Poland.
Other new contracts awarded since 2009 include projects for beverage company Dr Pepper Snapple Group, household appliance manufacturer Electrolux, Texas-based electric utility Energy Future Holdings, UK insurance provider Equitable Life (worth $200 million), entertainment channel MTV Networks, top cell phone manufacturer Nokia, publisher Reader's Digest (worth $350 million), and stock exchange Singapore Exchange (worth about $80 million).
The company only recently began to expand its international footprint outside the US and Europe, which together account for 85% of sales. In 2009 it opened a second location in Brazil to tap the growing market for IT services in South America's largest country. It entered the Middle East in 2007 and opened a new regional Middle East office in Dubai in 2010, where it already has a couple dozen customers.
HCL Technologies has traditionally relied on organic growth to expand its operations. The last major acquisition it made was in 2008 with the purchase of UK SAP consultancy Axon Group for £441 million ($659 million). The purchase augmented HCL's Enterprise Application Services (EAS) unit, which made up 11% of its revenue. With the addition of Axon, which does business as HCL AXON, EAS is expected to account for about a quarter of HCL's revenues. That year it also bought Control Point Solutions, a provider of expense management services to the telecommunications industry, for about $21 million.
The company was founded as Hindustan Computers Limited in 1976 by chairman Shiv Nadar. HCL Technologies was spun off in 1997 and went public in 1999. Holding company HCL Corporation Limited controls almost half the company's stock.