HCL Is A Leader Among global Infrastructure outsourcing ... · HCL Is A LeAder Among gLobAL InfrAstruCture outsourCIng Vendors ... Fujitsu CGI Market presence ... Hcl Is a leader

HeadquartersForrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA, 02140 USATel: +1 617.613.6000 • Fax: +1 617.613.5000 • www.forrester.com

For InFrastructure & operatIons proFessIonals

HCL Is A LeAder Among gLobAL InfrAstruCture outsourCIng Vendors

HCL Technologies tends to be one of the India-centric providers most often encountered in deals involving the traditional outsourcing giants, even though its overall service market presence is not the highest among India-centric firms. HCL enjoys a solid reputation for flexibility, cost-effectiveness, and technological capability, which gives it an extremely strong value proposition. HCL also has a particularly robust set of planned enhancements. Its relatively large investment in strategy shows its willingness to increase its infrastructure services footprint. HCL is particularly adept at pursuing existing outsourcing customers and transitioning them into the HCL fold. Its vision includes the enterprise workplace of the future, network generation data centers, and zero infrastructure sites. HCL also registered the second highest overall grades for customer satisfaction (GWA and TCS tied for first).

See below for more information on HCL’s current offering, strategy, and market presence.

HCL Is A Leader Among global Infrastructure outsourcing Vendorsexcerpted From the Forrester Wave™: Global Infrastructure outsourcing, Q1 2015by William Martorelli and Wolfgang Benkelwith Glenn o’Donnell, Frederic Giron, and andrew Hewitt

January 13, 2015

Forrester Wave™: Global Infrastructure Outsourcing, Q1 ’15

Source: Forrester Research, Inc. Unauthorized reproduction or distribution prohibited.

RiskyBets Contenders Leaders

StrongPerformers

StrategyWeak Strong

Currentoffering

Weak

Strong

Go to Forrester.com to

download the Forrester

Wave tool for more

detailed product

evaluations, feature

comparisons, and

customizable rankings.

0

IBM

HCL

Accenture

TCSHP

CSC

Capgemini

Wipro

AtosT-Systems

GWA

Fujitsu

CGI

Market presence

HCL, with a Forrester score of 4.08,

is a Leader in this Forrester Wave.

http://www.forrester.com/go?objectid=BIO801





Hcl Is a leader among Global Infrastructure outsourcing Vendors 2

© 2015, Forrester Research, Inc. Reproduction Prohibited January 13, 2015

HCL Evaluation Overview

CURRENT OFFERING

Global delivery model

HCL delivers infra services from 16 countries. Its focus is on achieving high customer satisfaction. HCL’s delivery centers provide a standardized delivery, globally providing a “single virtualized delivery center” through standard processes based on ITIL v3 framework and standard tooling framework MTaaSTM (managed-tools-as-a-service). HCL approaches customer engagements with various tools, process, and frameworks and IPs like HCL MyCloud, MTaaS (managed-tools-as-a-service), Gold Blue Print, and HCL GBP. HCL sees its advantages in global delivery (global talent, one team, strong senior management commitment for growth of global development model [GDM], usage of HCL tools and processes across all delivery centers), time zone (lower total cost of engagement through productivity gains and minimal turnaround time), and risk mitigation (balancing geopolitical risk with full support from local governments).

Global geographic staffing distribution

HCL’s global geographic staffing distribution is as follows: • Americas: 15%. • EMEA: 10%. • APAC: 75%.

Global client geographic distribution

HCL’s global client geographic distribution is as follows: • Americas: 38%. • EMEA: 20%. • APAC: 42%.

Standard infrastructure service portfolio

HCL’s end-to-end IT infrastructure services portfolio covers a spectrum of ITIL-compliant service support and service delivery processes in the domains of end user computing services, DC services, enterprise network services, security services, application operations, and process and tools. HCL offers customers service with an option of asset light and asset heavy and alternative delivery models like cloud-based services and building and supporting the business-ready infrastructure for supporting SaaS platforms. HCL has partners all across the globe that are chosen through a certified alliance partnership program (CAPP). HCL has a partner framework with alliances or partnerships with product, OEM, technology, or independent software vendors (ISVs) and services companies.

Ecosystem participation

HCL’s partner ecosystem targets industry-leading product and/or services companies with complementary strengths. Key motivations include provisioning of localized services; access to niche products, platforms, services, and customer base; deployment of technology-focused resource pool enabled by skill exchange programs training and jointly staff labs; access and training on early-stage products (in alpha or beta test phases); and leverage of already proven products and methodologies.





Service integration and management (SIAM) capabilities

HCL has a defined practice in SIAM with more than 2,000 man years of experience developing frameworks and solutions for tools and process management. HCL has also developed the processes and frameworks for SIAM in order to bring process efficiencies in a multivendor scenario. In HCL’s vision, service integration coordinates management of individual services from internal or external service providers to comprise an end-to-end service to the end users such that this service meets business objectives and requirements for performance, quality, and cost. Key responsibilities of HCL’s approach to SIAM function include ITSM process standardization and adoption across all vendors including common workflow policies and workflows, common performance indicators, common governance, division of responsibilities, and rules for process interfaces.

Innovation For HCL, innovation is to: • Encourage lateral thinking and spawn innovative ideas — value creation councils, enterprise portal for idea generation, centers of excellence, and vertical solutions groups. • Reduce cycle time for taking viable ideas to market: assessment of viability/market worthiness, securing management buy-in, streamlining investments, and expediting returns. • HCL has inculcated the culture of “ideapreneurship” within the organization. It is rolled out to customers through the innovation council that forms a core part of HCL’s service delivery organization. The innovation council comprises technology architects, service management experts, business/account teams, and service delivery managers. The innovation council is mandated to generate ideas that bring in savings over and above those contractually committed. • Value Portal framework: Value Portal framework is an enabling structure that facilitates a “value creation culture” from day one of the engagement.

Continuous improvement

HCL’s continuous improvement program incorporates methodologies like Six Sigma and total quality management for enhancing the support and delivery aspects in managing the infrastructure operations. HCL, as part of its commitment to provide year-on-year productivity improvements, will deploy its continuous improvement framework, which includes the following: • Creating standard operating procedures-based application support processes to shift support from high-cost L2/L3 resources to lower-cost L1 resources who would work in the integrated operations management center. End-to-end business process maps that are linked to IT environment that reduces the time taken to perform impact analysis for any enterprise IT application change. • Expanding the usage of the tooling framework to automate build and release management processes. • Cross-skill personnel in the common technical pool in order to optimize resource utilization in the team. • Applying Lean Six Sigma, and improving the processes.

Client feedback on implementation

HCL’s client feedback score on implementation averaged higher than 4.5.

Client feedback on account and relationship management

HCL’s client feedback score on account and relationship averaged between 4.0 and 4.5.





Client feedback on service quality

HCL’s client feedback score on service quality averaged between 4.0 and 4.5.

Client feedback on general satisfaction

HCL’s client feedback score on general satisfaction averaged between 4.0 and 4.5.

STRATEGY

Customer value proposition

HCL’s overall value proposition is to channel the depth of HCL’s experience, skills, and knowledge in a manner that blends the scale of a global supplier while retaining flexibility and control. HCL is among the most aggressive of the India-centric suppliers in infrastructure outsourcing and has obtained a substantial percentage of its customers by competing with global multinational suppliers. The fact that 40% of its customers have moved over from incumbent multinationals trusting HCL with mission-critical infrastructure today speaks of the customer’s faith in HCL to provide them the best of both worlds. HCL, with its unique employee-first culture, seeks to establish an entrepreneurial culture, facilitating employee-led innovation while establishing a co-sourcing philosophy with its customers.

Planned enhancements

HCL plans to focus its improvements on numerous areas including the so-called “profile kaleidoscope,” a set of user profile assessment services allowing clients to identify and establish end user profiles in the organization and enabling HCL to design a workplace stack for each individual user profile; Optibot, a set of end user services aimed at enabling “shift left” for reduced incident volumes; zero infrastructure footprint framework to minimize remote site infrastructure; HCL Cart, a cloud assessment and readiness tool; HCL MCOD, a forthcoming enterprise cloud solution; and other initiatives aimed at improving service quality, including programmable infrastructure, disaster-recovery-as-a-service, quality-as-a-service, and DevOps support. HCL is also seeking to develop support for emerging business models such as online-IT for positioning cloud in specific user scenarios.

Plans for growth

HCL believes growth in its infrastructure management business will be primarily organic in nature, but the company continues to look for additional avenues for inorganic growth. HCL expects that investment in the next-generation infrastructure services model, such as the “Enterprise of the Future” framework, will also provide opportunities for growth. HCL also expects that geographic expansion in regions including South Africa, Australia, and Canada will provide additional avenues for growth. HCL’s partnership with Computer Sciences Corp. (CSC) for legacy modernization is an additional focus for growth, as is HCL’s investment in research centers such as its customer experience center in Noida, India.

Investment to support strategy

Forrester estimates 7% of the total business revenue is spent on R&D investments.





Vision for infrastructure services

HCL’s business/strategic goals emanate from the overall mission of HCL and emphasize the conviction/commitment of HCL toward providing quantifiable benefits to customers. HCL’s mission is “to be the most preferred and significant global IT services provider in [its] chosen markets.” HCL has multiple partnerships with cloud service providers across the globe and manages and orchestrates cloud services in-house, which blends the future IT infrastructure. HCL’s cloud enablement approach helps enterprises envisage the road map for enablement and adoption of cloud computing technologies. HCL has multiple cloud services partners, ranging from public cloud services like Amazon Web Services to enterprise cloud services like the HCL-CSC cloud model. HCL envisions a workplace of the future that enables the end user by providing “employee freedom and mobility” in terms of device and data, “personalized experience” in terms of profile-based services, and “intelligent infrastructure” based on back-end infrastructure.

MARKET PRESENCE

Service market presence

HCL is a world leader when it comes to server management and network management. Though most clients reside in the Americas and EMEA, HCL’s position as an Indian provider could mean diversification down the road.

Financial strength

Though HCL’s overall revenue is relatively small, its infrastructure management investment strategy is large and shows signs of growth.

Infrastructure services client base

HCL has 460 infrastructure management clients.

Infrastructure service employees

HCL has 30,300 infrastructure management employees.

Total employees HCL has 85,000 full-time employees.

Vertical alignment (not graded)

HCL specializes in the following verticals: manufacturing, high-tech, banking and financial services, pharma, life sciences and healthcare, media publishing and entertainment, consumer products group, energy and utility, retail, telecom, and travel and logistics.



Forrester Research (Nasdaq: FORR) is a global research and advisory firm serving professionals in 13 key roles across three distinct client segments. Our clients face progressively complex business and technology decisions every day. To help them understand, strategize, and act upon opportunities brought by change, Forrester provides proprietary research, consumer and business data, custom consulting, events and online communities, and peer-to-peer executive programs. We guide leaders in business technology, marketing and strategy, and the technology industry through independent fact-based insight, ensuring their business success today and tomorrow.

© 2015 Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, TechRankings, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective owners. Reproduction or sharing of this content in any form without prior written permission is strictly prohibited. To purchase reprints of this document, please email [email protected]. For additional reproduction and usage information, see Forrester’s Citation Policy located at www.forrester.com. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. 118404

WHy reAd tHIs report

from tHe forrester WAVe™: gLobAL InfrAstruCture outsourCIng, Q1 2015

Given companies’ shift in business focus from cost reduction to growth in revenues and improving the customer experience, infrastructure outsourcing services have become an important part of providing the right level of efficiency, flexibility, quality, and innovation to support business customers’ needs and expectations. Infrastructure outsourcing service providers have responded by expanding their service portfolios to include consulting, transformation and improvement, and cloud and cloud management offerings. In Forrester’s 61-criteria evaluation of global infrastructure outsourcing services vendors, we identified the 13 most significant providers in the segment — Accenture, Atos, Capgemini, CGI, Computer Sciences Corp (CSC), Fujitsu, The Getronics Workspace Alliance (GWA), HCL Technologies, HP, IBM, T-Systems, Tata Consultancy Services (TCS), and Wipro — in the category and researched, analyzed, and scored them. This report details our findings about how well each vendor fulfills our criteria and where they stand in relation to each other to help infrastructure and operations (I&O) professionals select the right partner for their global infrastructure outsourcing needs.

Documents

HCL Is A Leader Among global Infrastructure outsourcing ... · HCL Is A LeAder Among gLobAL InfrAstruCture outsourCIng Vendors ... Fujitsu CGI Market presence ... Hcl Is a leader