HCLTech CEO and Managing Director Vijayakumar are optimistic about the opportunities created by supplier consolidation and the increasing share of cost-recovery deals in the overall deal portfolio.
“Almost $115 billion worth of consolidation opportunities are expected in the next two and a half years. I see that as a very good opportunity. I think we are very well placed to benefit from it,” he told TOI post the company’s announcement of its Q3 earnings.
HCL signed seven major services contracts and 10 software contracts totaling $2.3 billion in the third quarter, up 10% from last year. Three major deals were signed to integrate suppliers.
Vijayakumar said there is a growing demand for IP operating model transformation where customers are moving towards a product-centric operating model. “When you want to do that you need to integrate your application and infrastructure – run and change. It’s beneficial to have one provider looking into its end to end,” he said.
When asked how the downturn has affected customer spending, he said digital transformation and related costs were largely unaffected.
“But there could be some peripheral things which customers may want to put a low priority on. The focus on efficiency and cost is also increasing in some of the segments and that’s also driving good deal flow into our pipeline,” he said.
On employee additions, Vijayakumar said it would depend on demand. “It keeps changing. We monitor it regularly. In the last 12 months, we’ve added about 30,000 freshers and we expect it to be a similar number in the next financial year,” he said.
