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HCL Technologies

The document analyzes HCL Technologies through a SWOT analysis and a PEST analysis of the IT industry. The SWOT analysis finds HCL's strengths to be its wide range of products/services, global coverage, and large employee base, while weaknesses include losing projects, lack of innovation, and asset utilization. Opportunities lie in acquisitions and emerging markets, while threats include outsourcing bans and increased competition. The PEST analysis examines political, economic, social, and technological factors affecting the IT industry in India.

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Vivek Doraiswamy
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446 views4 pages

HCL Technologies

The document analyzes HCL Technologies through a SWOT analysis and a PEST analysis of the IT industry. The SWOT analysis finds HCL's strengths to be its wide range of products/services, global coverage, and large employee base, while weaknesses include losing projects, lack of innovation, and asset utilization. Opportunities lie in acquisitions and emerging markets, while threats include outsourcing bans and increased competition. The PEST analysis examines political, economic, social, and technological factors affecting the IT industry in India.

Uploaded by

Vivek Doraiswamy
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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HCL TECHNOLOGIES

VIVEK D

(10AA45)

SWOT ANALYSIS HCL TECHNOLOGIES

STRENGTHS

• Wide Range of Products and Services like Bpo’s, Software


.Example:NIIT.

• Services, Infrastructure Management which cater into both


large and medium size companies.

• Global Coverage in countries like U.S, Europe, Japan etc

• Strong employees base of upto 50000Pax.

• Support sales activities by understanding the customer


business better.

• Keep uptodate on what competition is doing.

• Its revenue has increased from 60.7bn in 2007 from 114bn


in 2010.

WEAKNESS

• One of the key weaknesses of HCL is that it has lost projects


in continuation like recently BFSI cuts projects.

• HCL has always a weakness in TIER 1 sectors.

• Total asset turnover is one of the weaknesses of HCL as they


has always failed to materialize its assets in right direction.

• Lack of innovation and distribution network especially in


case of laptops has reflected HCL’s weakness
OPPORTUNITIES

• Acquisitions:-HCL has already done 3 major acquisitions like


Liberta. This enables them to expand and create opportunity
for them to wide there spectrum.

• Key opportunities lies in the countries like Eastern Europe


and APAC(Asia-Pacific Region).

• Opportunity of doing better on return on equity from


21.42% by beating Infosys(26.08%)

THREATS

• One of key threat for HCL and the industry as a whole is the
ban of outsourcing from India due to new regulations from
U.S

• Dip in quarterly Sales by 5% can lead to loss of market


share and product depreciation.

• Small Players and manufactures are trying to enter into the


segment where they can provide much cheaper products
then
HCL which will be a rising competition for HCl to stand.

PEST ANALYSIS IT INDUSTRY


Political

• Taxrates in India for the hardware sector is 20%-30% plus


which creates obvious possibilities for the further reform and
faster growth.

• 10Year Special Economic Zones programs and tariffs change


to promote the hardware production.

• 26 new projects as a part of a national E-Government Plan.


• Tax initiative by government to ask state government to fix
VAT at 4% in the hope of attracting investors.

• Manufacturing Associations of IT(MAIT) an Electronic Industry


Association of India(ELSINA) are also pressing for reduction
in land acquisitions rights by stamp duty exemptions

Economic

• In last 18months there is growth in sales in PCs and


computer hardware, mainly due to lower prices.

• But as per the trade cycle rotation there will be a possible


slowdown in demand.

• IT plays a important role in bringing 50%of rural household


to the banking innovation.

• IBM, Dell, Lenovo has announced new investment to expand


capacity

• Compound Annual Growth Rate is 15% between 2005-2010.

• Industry contributes upto 7% in GDP

SOCIAL

• Only 1.3% of people in India own a computer

• Age Distribution:- 45% of the population is under 25.

• Regional imbalance and low incomes.

• Inward Investment can lead to better job opportunities.

• Still Abroad is the fascination among the IT professionals to


work.

• IBM, Wipro and Infosys recruit 15000-20000 graduates each


year.

• Business practices varies region wise


Technological

• Plans by AMD to set up the country’s 1st chip fabrication (an


investment upto US$3bn) to stimulate local production and
lower prices.

• Multimedia features and Entertainment to bring bollywood


among the masses.

• Lenovo to built in TV tuner cards capable of connecting to a


TV antenna.

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