The Hindu Business Line : HCL Tech to push deeper into capital markets space

HCL Technologies Ltd proposes to take the inorganic route to add new capabilities to its Capital Markets Services (CMS) group, the investment banking and technology operations (ITBO) division or the erstwhile joint venture DSL Software.

HCL, which completed the acquisition of the remaining 49 per cent stake in DSL Software from Deutsche Bank in December 2004, is repositioning it as the Capital Markets Services. The company had acquired a 51 per cent stake in 2002 in Deutsche Software.

"The rationale behind repositioning is to get a deeper domain focus in the capital markets space," said Mr S. Premkumar, Chief Marketing Officer and global head for HCL's banking and capital market services.

HCL is now looking to enhance capabilities of CMS in areas of fund management, asset and wealth management among others, he said. CMS offers integrated technology and operations across the spectrum of software development, application development and maintenance, infrastructure services including remote management services and the business process outsourcing.

"We may go in for an acquisition on the similar lines of the Deutsche Software buy-out," he said. However, Mr Premkumar did not detail any timeframe for the proposed buy-out, but said they may also consider acquiring captive centres.

HCL's CMS has seen a significant growth in its revenues to around $100 million in 2004-05 as compared to $18.5 million about three-and-half years ago. CMS accounts for 50 per cent of the revenues that HCL derives from the banking and financial services and insurance (BFSI) space, Mr Premkumar said. The BFSI accounts for around 25 per cent of HCL's total revenues.

The CMS has some half a dozen customers including Deutsche Bank, its largest client from which it derives close to 90 per cent of its revenues. "Majority of the new wins have happened since January this year," Mr Premkumar said adding the "pipeline looks pretty healthy."

Mr Premkumar said the CMS has also seen a significant ramp-up in its headcount from 450 in 2002 to around 3,400 till date. "We have also has built frameworks in areas of risk management and research, which we expect to take to the customers and customise for them," he said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
TRAI rejects move to issue directive on access charge

`Walky' services — BSNL asks circle heads to recover ADC dues from Tata Teleservices

Taking a call on emotional labour

`Digital library, e-learning must complement each other'

HCL Tech to push deeper into capital markets space

Cybernet unit in pact with IBM India

As IT security concerns rise, so do UTM devices

Little Flower team wins TCS quiz

Looking Back