HCL Global Consumer Services Practice“Business Aligned sourcing Partner”

Sanjeev Nikore,Senior Corporate VP & President,Consumer and Manufacturing services

November 30th2010 | The Grove | Watford, UK

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CSP’s

Breaking Down “Consumer Services”

The Consumer Business

Community Platform ProvidersE-Bay, MySpace, Face book, Yahoo

Retail & eCommerceWal-Mart, GSI, Lowe’s, Office Depot

Media Content Creators & ProvidersNBCU, Fox, Paramount, EMI

Communication Platform & Cable Providers

AT&T, Cablevision, TMobile

Hospitality & GamingIntercontinental, IGT, WMS Gaming

Consumer Product Goods & ServicesDr Pepper, US Foods, Performance

Food Group

Publishing Content Creators & ProvidersPearson, Readers Digest, Marvel Comics

Convergence Technology Providers

Sprint, Nokia, Comcast

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Over 20+ Large and 100+ Growth category Consumer Services Clients being supported through delivery Centers in Noida, Chennai, Bangalore, Calcutta, Beijing, Krakow, Sao Paulo and US Capability in Cary, NC

Over 17000+ Technology & Domain consultants*30/70 Functional/Technology skill base

Average Large Deal (>10M) Size- $18.3M

Customer Satisfaction Rating 2009-2010 – 6 .3/ 7

Customer Retention Rate- 99%

HCL Consumer Services – A Perspective

Key Highlights

At 27% of the Total HCL revenues, Consumer Services is the largest vertical group

Consumer Services constituted nearly 40% of HCL’s total wins over the last 15 months (wins by TCV)

17000+ Technology & Domain consultants working with customers across the world

We have expertise in 90+ Consumer Services Business Processes

All figures in $M

FY 09 FY 10

540 715

Our Growth Trajectory

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HCL Consumer Services – Selective Large Deals over Last 2 yrs

Media & Entertainment

$866M+ from select large deals over last 2 years

Representative clients include a Leading Education Publisher, Lottery Gaming Company, Global Music Recording Label, Large Broadcaster, Leading Magazine Publisher & more

Retail & CPG

$635M+ from select large deals over last 2 years

Representative clients include a Leading US Beverage Brand, one of the Largest Food Services companies, Leading Specialty Retailer, F500 Home Improvement Retailer, Leading General Merchandise Retailer

Telecom

$500M+ from select large deals over last 2 years

Representative clients include a Leading US based Telecom Services providers, Largest tier 1 CSP in Europe

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Retail & CPG

Media &Entertainment

ConsumerElectronics

Telecom

Industry Convergence

Mega Trend: Physical location will become irrelevant as Global markets migrate to the digital space

Illustration: Amazon.com, Coke in the UK

Mega Trend: User Gen content and the Long Tail rule

Illustration: Twitter

Mega Trend: The Device is now a platform. The most open, scalable, inclusive platform will win

Illustration: iPhone App Store, the Kindle ecosystem

Mega Trend: The Digital Home (or Office) is the gateway to the connected universe

Illustration: Verizon FiOS Project

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The 1on1 Marketplace evolution

The Consumer

Anytime, Anywhere, Anydevice

Virtual Office

Web Research

Networking

Mobility

Collaboration

Career

Shopping

Lifecycle

Learning

Fun

Travel

Socializing

Entertainment

@ Work @ Home

Trad

ition

al

Music, Movies, Books

Consumer Goods

Retailing

Information

Data and Voice Services

Leisure & Games

Traditional

Customer Relationship

Digital Supply Chain

Business Analytics

Integrated Marketing

eCommerce

Consumer TouchpointsBusiness Processes Goods & Services

The Changing Consumer Business Landscape

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Key Investments

1. Industry Lab Initiatives

2. Vertical Solutions Groups (VSG)

3. Onsite (Geo) Practice Head

4. Internal MV-Specific Research Groups

We got organized in Microvertical Groups….

Other Initiatives

1. External ‘Advisory’ research – Domain Specific

2. ‘Product Company’ Partner Program

3. ‘Customer Councils’ & ‘External Advisors’

4. Value portal

2007 – HCL Consumer Services Microvertical Journey Starts

Telecom Media & Entertainment Retail and CPG

Communication Service Providers

Network & Equipments

Wireless OEMs

Publishing & BIS

Studios, Music & Broadcasting Networks

Cable - MSO

Gaming & Hospitality

Specialty Retail

Grocery Chains

Food & Beverages

Quick Service Restaurants

…And made the right investments

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HCL Industry Solution Labs

IPs & Frameworks

HCL has set up the Consumer Services Industry Labs with the objective to commercialize innovations & exhibit Thought Leadership

Media & Entertainment

Content 2.0

Integrated Media Asset Centered Transformation (IMPACT)

Social Networking Platform

iTransform

Content on Demand

Integrated Marketing Solutions

Ad Minister

Digitale

Visualization – Universal Browser

Artist 360º

D2C (Direct-2-Consumers)

Intelligent Crawling Technology

Universal content Migrator

Retail & CPG

Unified Apparel Model

Pre-Production Optimization

EmpoweRetail (MS Dynamics based Customer Loyalty Solution)

Last Mile Replenishment

Rx Modernization framework

Test Factory in a Box - Retail

Track N Trace (perishables)

Mobility platform

Multi-Channel product evaluation framework

Analytics frameworks – Market Mix Modeling, Market Basket Analysis, Test & Learn, Propensity to Buy modeling

CXO Dashboard

Telecom

Usage Monitoring & Accounting System (UMAS) – Enterprise billing solution

Telecom Operations Efficiency Enhancer (Toɳe) Framework

Wireless Field force management solution

Test Automation Framework (TAF)

Wireless Service Delivery Platform

SIP Stacks

SOHO Gateway

QoS Policy Tool

Mobile Simulator Tool

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HCL Consumer Services – A Differentiated Team Structure

Aligned to work with sales team to drive domain led discussions with ClientValue add to our existing engagements to support Client Business Initiatives

HCL CS Sales Org Structure

DemandCreation

Engagement Managers

IT AlignedSales Managers

Business AlignedSales Managers

Focus on Billing, CSAT, increasing Cross sell coefficient by involving the

IT & Business Aligned Sales to existing customers

Business and process oriented sales managers who will drive core

Demand Creation efforts through proactive business solutioning in set

of hi growth accounts

Traditional sales managers including the horizontal teams Focused on

driving horizontal(ADM, EAS) focused sales for a set of

accounts

Industry/ Domain Partners

Vertical Solutions Group

Focused on building thought leading Solution FrameworksWork on various bids to differentiate our offerings by making it more aligned to the Domain

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TechnologyStrategies for Business

Transformations

Long Term Value

Cost Market Value

Type

of R

elat

ions

hip

Outsourcing Cost reductions through labour arbitrageQuality & consistency of serviceImproved flexibility

Value-sourcingValue-based commercialsCapital expense amortizationStrategic initiative for cost leadershipImproved focus on core operations

Preferred Supplier

ROI

Carve-outsVendor InvestmentsCapital inflowMax re-badging RightShore delivery model

Partner

Vendor

HCL enable increased cost savings YOY and provide up the value chain relationship benefits as a partner.

Innovative Relationship Models for IT+Business Transformation

Starting your Business Aligned Journey with HCL

Leave & Layer

Building the right Middleware Strategies

Replatform for Growth

Replatforming to new systems

Re-Engineer for Cloud

Moving to Public or Private Cloud based or Shared systems Models

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Business Aligned Sourcing with HCL Consumer Services

Business Aligned Sourcing PartnerHCL Consumer Services

Consumer Businesses

Consumer Evolution

The 1on1 Marketplace

Business Transformation Total IT Transformation

HCL is committed to help customers through large IT sourcing transformation journey by demonstrating Flexibility in business & commercial models –these initiatives while optimizing the operations and creating savings also aid in creating time and resources for new business initiatives

Through Business Services we can bring about End to End Business Process & Technology efficiencies

HCL excels in situation where it is required to work with clients on defining the business problem and creating the technology led strategies to support change the business initiatives

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40+ Processes and 4500+ FTEs covering processes including

Concept to Marketing, Order Management & Provisioning, Customer Support, AR, Tech Helpdesk, Remote Testing, Directory Listing

The Largest Tier 1 CSP in EuropeHCL in TelecomLeading offshore IT service provider in Telecoms

10000+ technology & domain consultants

Satellite service provider business experience & Rich product engineering heritage

Enabled 50+ patents on the most relevant next generation networking technologies

Partner for customer experience & Innovation

Selective Clients:

End to End transformation – Telecom

Business Services

Application Custodian Integrated Support which includes Technical Services and Help Desk Support ServicesHCL implemented TOηE solution to provide Application Custodian service – End-to-end ownership of client application landscape

IT Services

Paradigm shift on focus from Reactive resolution to proactive monitoring Enhanced customer experience along with significant operations costs reduction. Achieved through proactive monitoring and implementation of Best Practices

Infrastructure Services

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End to End transformation – Retail & CPG

Variety of process managed including Order Processing . Follow-up, Customer Service. Virtual Warehousing, Order Management, SKU Harmonization, Track & Trace Support , Returns Management Order accuracy rate >99%

Strong 3600+ resource base –Domain experts and technical consultants

9 of the Top 50 Retailers are HCL Clients

Strong COE’s for JDA, MS Dynamics, Oracle, SAP, Manhattan and Retail & CPG Industry IP/Frameworks

Dedicated Retail & CPG Solution Group enabling domain focused collaboration and sharing of industry best practices

Repository of Benchmarked Retail and CPG Business Processes

Selective Clients:

Business Services

More than $50M benefits realized through business process re-engineering & consolidation of business systems“Cost-To-Serve” real-time order sourcing optimization with constraint modeling Integration of PoS and AC Neilson data to drive brand and segment penetration

IT Services

Datacenter monitoring and management – Servers, Storage & Backup, Database, Helpdesk, Desktop support, Networks and Security ManagementConsolidation & Standardization across the globe

Infrastructure Services

US Based Global Leader in Office SuppliesHCL in Retail & CPG

One of the largest Beverage Companies in the World

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End to End transformation – Media & Entertainment

Leading worldwide media company providing integrated marketing solutions for the Fashion, Life Sciences and Powersports industriesHCL in Media &

Entertainment

Fastest growing industry segments in HCL over last 3 years

Micro-verticalization strategy for deeper domain understanding

Leadership position in select micro verticals of Publishing, BIS , Music & Gaming

Industry Solution Labs and IP development in Media Verticals

4,000+ Technology & Domain consultants

Selective Clients: End to End ADM Services Delivery Structures for all Global TeamsRebadging of 100+ Client Employees at US, Europe & LA

IT Services

Helpdesk Support across 35 countriesWintel server consolidation & UNIX rationalizationExchange ConsolidationConsolidation & Standardization across the globe

Infrastructure Services

A Leading Magazine Publishing Company with publications in more than 70 Countries and a global circulation of 17 million, making it the largest paid circulation in the world

Global Premedia (BPO) consolidation in 25+ countries in 12 weeks.End to End Pre-Press, Advertisement and creative Designing, Pagination, Website Editing & Publishing, Outbound & Inbound Telemarketing

Business Services