HCL Strategy Update – Big Bets and Key Account Management
21st Century Sourcing : From Cost to Innovation
TRANSITION
Gen 1
Gen 2
Gen 2+
Business as a
Service
Revenue Impact
Cost Impact
Model
Cost Focus
Unlock Capital
Cost Focus
RTB – CTB Mix
Revenue Focus
Revenue Impact
Revenue Focus
Lean
Principles
Resource Based
T&M
Managed
Services
XaaS
Labor Cost
IT Cost
Business Cost
90 - 10
65 - 35
50 - 50
Minimal
Minimal
Transformationa
l
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HCL will therefore focus on a few strategic customers with sharply
focused offerings
Share of incremental revenue across customer segment on X Axis and Business
Segments on Y Axis
momentum
Big bets
Defend & Grow A/cs
Focus on 50 accounts that will
contribute 50% of incremental
revenue – G1000 / F500 clients
Grow
Sustain
100 accounts,
contributing to
30% - G2000
G2000 +
13 focus bets to contribute 65% of incremental revenues –
Analytics, Digital, IoT
-- Gen 2+ services
Momentum business segment to bring the 35 % of the incremental
revenue
-- Gen 1/ 2 services
Quicker response times
Segment Leaders to drive strategy & growth
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… Client Partners managing key accounts will have
be pivotal to our growth strategy
Client Partners to report to L1/L2 leaders who will be account corporate sponsors
Client
Partner to
be single
owner of
P&L
Marketing
initiatives
to aide CPs
Client
Partner
Responsibili
ties
Dedicated
SPOCs
from
enabling
functions
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All Service
Lines
report into
CP
CPs to own
QBR
agenda for
account
4
… Key capabilities that a Client Partner should
possess
Quality / Trait
Quality Group
Good understanding of industry domain of the account
A
Should have managed a minimum 50 mn+ revenue account with at-least 3
service lines
A
Overall work experience of at least 15+ years
A
Manage relations at CXO level / past experience of managing such relations
A
Should have managed F500 / G1000 accounts across clients with significant
engagements around deal churns and CTB
A
In-depth knowledge of at-least one service line relevant to the accounts
A
Should have managed a team of at-least 4 direct reports
A
Should be a go-getter/ high achievement orientation
A
Should have driven solution building for the account
B
Delivery experience of managing large and multi-service line programs
B
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… Client Partners at HCL will be groomed for greater responsibility by
senior leaders
Client Partners at HCL
SBU Head
Present Responsibility
BU Heads
CP Fortune
300 Bank
• Vice President
• Present Client Partner
• P&L Managed: Over $ 80M
CP Fortune
300 Bank
• Senior Vice President
• Present Client Partner
• P&L Managed: over $ 250M
Client Partners*
Client Directors
Diamond CPs –
Managing
multiple CP led
accounts
Account Managers
• Senior Vice President
Senior Leader FS
• Leader FS - Americas
Americas
• P&L Managed: Over
$ 100M
upto 20 M
$ 10 – 50 M
$ 50 – 300 M
$ 300 – 700 M
P&L Managed
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FS Head –
Americas
• Corp. Vice President
• Head FS – Americas
• P&L Managed : $ 700M
Appendix
A dynamic marketplace presents a make or break
opportunity for HCL
Share of Usage
2008
2012
2020
1
Device Shift
From PC to touch
PC
Mobile
Tablet
Other
78%
22%
0%
0%
57%
32%
11%
0%
20%
50%
20%
10%
2
Communications
Shift
From voice to data
Voice
E-mail
Social
Other
39%
42%
15%
4%
27%
36%
26%
10%
15%
30%
33%
22%
3
Usage Shift
From bundled to
fragmented
4
Social Shift
From growth to monetization
61%
39%
22%
78%
13%
87%
23%
77%
5
Linear TV 78%
Video Shift
Programmer to user controlled VOD, OTT 22%
65%
35%
10%
90%
6
Retail Shift
From channel to experience
4.9%
9%
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Mobile Voice
Mobile Data
8
Social
Other
Internet
E-commerce/
3.6%
All retail
5%
95%
45%
55%
… how we will take our Relationship Beyond the
Contract with you
>>> Attractive incentive plan – Increasing incentive structure with every
subsequent sourcing <<<
>>> Attractive incentive plan – Strategic Partners to be on boarded and included
for all new hiring's <<<
>>> We could partner with you to jointly pursue HRO based outsourcing deals
<<<
>>> Recognition and Visibility on HCL website – Strategic Partner status and
extensive coverage <<<
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Copyright © 2014 HCL Technologies Limited | www.hcltech.com