BackHCL Tech to enter newer markets to grow faster: Edelweiss Securities
HCL Technologies said it is not looking to invest a major amount on the product side but will focus on increasing penetration swiftly in frontier countries through capability-based acquisitions
PremiumBengaluru: Noida-based IT services firm HCL Technologies Ltd plans to enter and grow in newer markets where its presence is low or below par in terms of overall opportunity, Edelweiss Securities said in a report.
“South Korea, Vietnam, Taiwan, Mexico, Brazil, etc. have huge markets and are growing faster, which will help achieve new targets of $15-20 billion in revenue in coming years," the brokerage firm said in a report based on HCL management’s commentary at the Edelweiss e-conference 2021, Asia Pacific.
HCL Technologies said it is not looking to invest a major amount on the product side but will focus on increasing penetration “swiftly in frontier countries through capability-based acquisitions".
HCL Tech’s management said it is concerned about attrition but confident of navigating it by taking “extremely good care" of employees and enabling work from home, retaining performers with high salary increments for niche skills, and hiring a lot of freshers and widening the talent pool.
The management highlighted that demand for talent is much higher as 80% of the growth is coming from offshore, with the billing rate in India being about one-third of that in the US.
HCL Tech’s management has reiterated the strong demand outlook and that the robust deal pipeline will continue to grow for at least the next couple of years as IT landscapes of most clients tend to be so large that their requirements cannot be met in one year.
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