HCL Technologies SWOTStrength: Shiv Nadar made it aggressive.
Vineet Nayars deal-making capabilities has brought in incremental
business higher than rivals. Customers like Boeing and Deutsche
continue to give more business, Axon acquisition considered a
silver bullet.Weakness: Overly aggressive acquisition brings risks
of additional staff in high-cost geographies. Profit margin lowest
among all India-based vendors, back-office business still in
transition.Opportunity: Sacrificing margins should help gain more
business. Best positioned to rival TCS in terms of scale.Threat:
High-risk contracts could affect cash flow and dent profit.
Post-Nayar leadership issue can be a tricky to solve.
===========================
PEST ANALYSISIT INDUSTRYPoliticalA.Taxrates inIndia forthe
hardwaresector is20%-30% plus which creates obvious possibilities
for thefurther reform and faster growth.B.10Year Special Economic
Zones programs andtariffs change to promote the hardware
production.C.26 new projects as a part of a national E-Government
Plan.D.Tax initiative by government to ask stategovernment to fix
VAT at 4% in the hope ofattracting investors.E.Manufacturing
Associations of IT(MAIT) anElectronic Industry Association of
India(ELSINA)
are also pressing for reduction in land acquisitionsrights by
stamp duty exemptions.EconomicA. In last 18months there is growth
in sales in PCs andcomputer hardware, mainly due to lower prices.B.
But as per the trade cycle rotation there will be apossible
slowdown in demand.C. IT plays a important role in bringing 50%of
ruralhousehold to the banking innovation.D. IBM, Dell, Lenovo has
announced new investmentto expand capacityE. Compound Annual Growth
Rate is 15% between2005-2010.F. Due to thedepreciation of theRupee
in comparison toDollar the software andoutsourcing has suffered
negativelydue poor exchange rate .G.Industry contributes upto7% in
GDP.SOCIALA.Only 1.3% of people in India own a computer.
B.Age Distribution:- 45% of the population is under25.C.Regional
imbalance and low incomes.D.Inward Investment can lead to better
jobopportunities.E.Still Abroad is the fascination among the
ITprofessionals to work.F.IBM, Wipro and Infosys recruit
15000-20000graduates each
year.G.BusinesspracticesvariesregionwiseTechnologicalA.Plans by AMD
to set up the countrys 1stchip fabrication(an investment upto
US$3bn) to stimulate local productionand lower prices.B.Multimedia
features and Entertainment to bring bollywoodamong the
masses.C.Lenovo to built in TV tuner cards capable ofconnecting to
aTV antenna.D.During the year Satyam entered into an agreement with
USbased G-LOG, to offer a supply chain management andsupply chain
execution solutions to itscustomer.Submitted By:- Tanay Sinha
