New Delhi, April 21 In a move that could mark a major shift from its current focus on total IT outsourcing in the coming quarters, HCL Technologies today said that it is betting big on investments into “utility computing”.
“Total IT outsourcing will become extinct fast and so when the economic slowdown ends it may not come back to the same shape and size. It is important to invest in the next big idea – utility computing, cloud computing and SAAS…HCL is ahead in that race,” the HCL CEO, Mr Vineet Nayar, said.
APAC region biz
HCL Tech said it was revamping its strategy for the Asia-Pacific region. “We are disappointed by APAC where we think the performance should be higher than what it is. We will rejig the strategy around it,” he said.
Asia-Pacific business has been falling (it has dropped 2.5 per cent in constant currency), while business from the US rose and now contributes 61 per cent to the overall revenues, up from 55.3 per cent in same period previous year. The company’s headcount stood at 54,026; 2298 gross additions were made this quarter.
Revenue from the core software services business grew 53 per cent from a year earlier to Rs 2,143 crore in the just ended quarter. Revenue from its remote infrastructure management services was up 51 per cent to Rs 432.8 crore. The BPO services revenue was up 27.3 per cent year-on-year to Rs 285.7 crore.
“In HCL, we decided 18 months back to de-grow the voice-based component of the BPO business; it did not fit into the company’s long-term integrated strategy,” he said, adding that the contribution of the voice-based business was down to 6.5 per cent of the overall revenue.
The company also said one of its customers (in over $40 million bracket) had scaled down the engagement.