HCL Corporate Presentation

HCL – Today & Tomorrow

Custom Application

24%

33%

12%

14% 17%

R&D & Tech

Services

Package Implementation

Business Process

Outsourcing IT Infra

Mgmt

R&D and Tech,

Custom Apps, Package

Implementation, Infrastructure and

BPO services company

Hardware & System Integration company focused on the Indian

market

HCL Technologies

Total Revenues ----------- $3.9B Clients ------------------------------ 500 Employees -------------------- 41,000 Countries---------------------------- 17

Highlights HCL Infosystems

Vertical Presence

Hitech/ Manufacturing

Consumer & Retail

Emerging Verticals

Telecom ServiceProvider

Financial Services

20%

26%

8% 10%

36%

53%

HCL Today

I• am value centric and not volume centric

• believe in ‘Employee First’ as they are the ones who provide value

to my customers

• believe in listening

• have a value based multi-service approach that combine emerging

services like IT Infrastructure management, BPO, R&D Services

and package implementation with deep domain expertise in

focused micro verticals

• follow a flexible and transparent business model. My pricing

depends on the value I deliver to my customer

• believe in trust, transparency and flexibility

• believe that my relationship would sustain purely based on the

value I deliver to my customers

• am the most hungry team in the IT landscape today

I am HCL

5

1

2

3

4

$ 1.16 Billion in revenues (TTM Dec 2006)

Won 5 of the largest engagements during the last 12 months

Among the top 2 fastest growing IT Services Company in IndiaDecember 2006

Featured as the ‘World’s Most Modern Management’ by Fortune MagazineApril 2006

Termed ‘Disruptive Force’ by a leading analyst groupNovember 2006

Quick Facts

About HCL: Service Areas

Industries we serve

Geographies we have presence in

About HCL: Industries & Geographies

HCL saw a bigchange in the market.

2005

It also saw an opportunity.

-3-

The Change

Adapted from The Innovators’ Dilemma” by Clayton M Christensen

We saw an inflection point towards value centricity.

From

Output /Outcome Focus

Output /Outcome Focus

Effort andInput Focus

Effort andInput Focus

To

From

IntegratedServices

IntegratedServices

DiscreteServices

DiscreteServices

To

-4-

The Opportunity

India based service providers arebest positioned to make an inroadinto large deals.TPI says this NOW – HCL saw this 18 months ago.

Inflection Point on Large Deal– TPI report of Dec ’06validates HCL’s strategy of April ‘05

* Source: TPI Index, Jan 10, 2007

Service Provider DiversityBased on Industrywide Market Share,the Industry Was More Competitive in 2006

-5-

The Opportunity

Service Provider Market Share: Top 100 Commercial Contracts

$4.68

$1.33 $1.18

$1.97

$0

$1

$2

$3

$4

$5

1Q07 2Q07 3Q07 4Q07

$ b

n

Projected award timeline of current pipeline

Total Restructuring Pipeline $9.7 bn

HCL, thanks to an early start enjoys momentum.

* Source: TPI Index, Jan 10, 2007

Our large deal strategy is based on Value Centricity.

Service Provider DiversityBased on Industrywide Market Share,the Industry Was More Competitive in 2006

-6-

2005First phase of the HCL Transformation is a 24 month plan with 76 initiatives cutting across employees, customers, operations and new business ideas driving business growth.

Third phase is a radical shift in business model and unique value propositions in 36 to 60 months.

Phase 3

Phase 2

Phase 1

2010

Second phase is a selective partnership approach to augment domain depth, capability and service innovation to enhance customer value and accelerate growth in 18 to 48 months.

Three Phase Approach to HCL Transformation

-7-

Operating Excellence

Employee Experience

2006

2005

Business Differentiators

Customer Experience

Facets of HCL Transformation

Employee first, customer

second Result driven rather than effort

driven culture Inverted organization structure

Output driven strategic

relationship rather than effort

driven Total outsourcing focus (TCO) Building trust and transparency

Drive efficiency at gross margin

level Improve the quality of SG&A

spend Build scalability

Create uncontested market

spaces in services propositions

(MSD and Service Innovation) Business outcome based pricing

and risk sharing

-8-

How is HCL different?

Focus on creating transformational value through Integrated Services

Employee First, customer second philosophy

Blue ocean thinking to create uncontested market spaces

Collaboration

Acceptable & Proven

Service Quality

Service Maturity

1998 - 2000 2002 - 20052000 - 2002 2005 & Beyond

Y2K R

emed

iatio

nApp

licat

ion

Man

agem

ent

B P O

Package Implementation

IT Infrastructure Management

Consu

lting ADM

BPO, Infra,Consulting

Inte

grat

ed S

ervi

ces

Timeline

Product Engineering

<

Adaptation from “The Innovators’ Dilemma” by Clayton M Christensen

What Next?

Evolution of Offshore IT Services Industry

Business Need: . • Need to reduce operational cost, increase Return on Equity and reduce operational risk• Need to reduce ‘Time to Market’ new products and services• Need to reduce delivery risk and improve business focus

HCL Solution:• JV with Client divested in favour of HCL with transferred staff• A truly integrated service offering – Technology, Operations & Infrastructure • Service includes high end processing in areas of credit default swaps and financial modeling• Over 3000+ HCL staff serving the client

• Domain focused recruitment strategy• Focused training through Talent Transformation Programs

• Robust and well tested transition methodologies to reduce transition risk and increase ‘time to market’

• Robust Governance Model to manage the large engagement

Global Bank

Transformational Value Creation – Case Study 1

Value Beyond Cost Savings

From $ 19 mn to $ 100+ mn in 4 years

From largely Onsite in 2001, to almost 80/20 Offshore-Onsite today

Value to the Bank goes beyondCost Arbitrage

Quality & Process Improvements Greater Quantum of Work Delivered

with Same number of FTE Replicated in other parts of the Bank

Transformational Value Creation– Case Study 1

Human Capital Growth

691

1040

1867

3100

486

0

700

1400

2100

2800

3500

CY 2001 CY 2002 FY 2003 FY 2004 FY 2005

Nu

mb

ers

Human Capital Growth

691

1040

1867

3100

486

0

700

1400

2100

2800

3500

CY 2001 CY 2002 FY 2003 FY 2004 FY 2005

Nu

mb

ers

Revenue Growth

2838

73

103

19

0

20

40

60

80

100

CY 2001 CY 2002 FY 2003 FY 2004 FY 2005

Rev

enu

e in

$ m

n

$19mn in CY01 to $103mn in FY’05

Revenue Growth

2838

73

103

19

0

20

40

60

80

100

CY 2001 CY 2002 FY 2003 FY 2004 FY 2005

Rev

enu

e in

$m

n

$19mn in CY01 to $103mn in FY ‘05

From < 500 to 3000+

17

Client

Benchmark

By reducing client’s IT/Operationscosts by 33% over 5 years…

…HCL enabled client toovercome market challenges

Key benefits

Transformational Value Creation– Case Study 1





Collaboration

19

Engaged employees lead to engaged customers. Following this tenet, HCL launched its Employee First

program to provide a unique and differentiated experience to its employees.

1 Smart Service Desk iGen Directions

2 4 Trust Pay Value Portal

360 Degree Feedback3 U&I (Direct Communication with

President) Electronic appraisal system Hewitt employee engagement

survey Weekly polls on key policy

decisions

Providing employees with a unique environment

Driving an inverted organization structure

Encouraging a value driven culture

Creating transparency and accountability

Employee First

20

Fortune features HCL as the world’s most modern management

HCL named as a top ICT employer in the UK

Great Place To Work!





Collaboration

• IDC believes that HCL is further along than all offshore competition and it is signing significant business in both infrastructure management and application outsourcing.

• HCL’s capabilities in investment and dedication to infrastructure services surpasses that of its offshore peers.

• HCL is also further down the path of creating significant business in bundled outsourcing services

Barry Rubenstein, Program Manager, Application Outsourcing and Offshore Services, IDC, who attended HCL's Advisors Meet in Boston on November 2,

2006, discusses why IDC believes that offshore IT services vendor HCL Technologies is becoming a disruptive force in IT and application outsourcing and

why competitors and customers should be giving the company a second look. Below are excerpts from the report he published (Report #204262, IDC):

Why HCL Technologies is Disruptive and Bears Watching – IDC Report Highlights

• HCL President Vineet Nayar has expressed the most cohesive and articulate vision that we have seen so far from an IT services vendor about how his company will adapt to the on-demand future.

• Backing up all of this is an enlightened approach toward management and HR policies. Without going into too much detail, HCL has established a well thought-out and comprehensive set of programs to empower employees.

Why HCL Technologies is Disruptive and Bears Watching – IDC Report Highlights

…though it has not received the hype of a salesforce.com or Google,

we believe HCL may very well be one of the contenders to lead the IT

services world of the very near future.

“

”





Collaboration

Collaboration

We do not believe that you can create value in isolation. It can only be done through collaboration with partners.

Hence HCL Today

HCL has won 5 of the largest 6 large multi-million, multi-

service IT engagements in the last one year, including the

largest ever won by an Indian Service Provider.

Hence HCL Today

HCL of tomorrowOur Aspirations

HCL stands for trust, transparency and flexibility

Blue Ocean strategy to drive growth

Value based multi-service approach that combine emerging services like IT Infrastructure Management, BPO, R&D Services and Package Implementation with deep domain expertise in focused micro-verticals

Building a sustainable high performance culture within the organization

Leverage operating efficiencies by focusing on global delivery model

Collaboration for market dominance

Think BIG

Talk to me

Documents

HCL Corporate Presentation