Hcl Technologies Management Consulting
Essay by Kshitij Chakraborty • September 3, 2018 • Case Study • 1,750 Words (7 Pages) • 629 Views
NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES, INDORE
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MANAGEMENT CONSULTING
CASE WRITE-UPs
Submitted to: Dr. Anil Goray Submitted By:
Aashai Singhal
Harsha Mishra
Kshitij Chakraborty
Naresh Parandhaman
Sudhanshu Ratan Shukla
PGDM 2017-19
NMIMS, Indore
Case 1 – HCL technologies
Case background
In 1974, Indian government passed the FERA act which discouraged MNCs from doing business in India. In 1976, HCL was founded by Shiv Nadar with fellow engineers just after the MNCs like IBM left India. It entered the hardware market with sophisticated R&D capabilities. With heavy investment in R&D, HCL was able to keep up with the latest technological trends and hence gained reputation for innovation. In 1992, Nadar offered Vineet to head a new business to be started, HCL Comnet, an Infrastructure and networking business wholly owned by HCL. Comnet was one of HCL’s most innovative and successful businesses.
- Challenges facing HCL Technologies when Vineet took over
Two trends that affected HCL
- Software and services became the source of revenues since hardware became commoditized. HCL was only in hardware
- HCL decided to go global but Americans were reluctant to buy hardware produced by an Indian Company as it was perceived to be of inferior quality. So HCL entered a JV with HP
- As a consequence of deregulation, MNCs like IBM returned to India
- Customers were increasingly demanding integrated IT services
- Companies were increasingly offshoring, recoding and application development work to India. HCL did not take advantage of this opportunity to build strategic relationships with top leaders of global companies since HCL did not want to compete on price
- Attrition rate rose to 30% which was much higher than industry average
As a result of these, Nadar decided to reorganise HCL into two companies-
- HCL Infosystems, focussed on harware and on software integration
- HCL Technologies, a global IT services company for providing software led IT solutions, remote infrastructure management services and BPO
HCL required a leader to handle HCL Technologies in order to transform it to adapt to market dynamics since it HCL Technologies had to beat the intense competition in this industry by getting Big Deals. Looking at his previous experience, Vineet Nayar was the best choice for the company
Steps taken by Vineet
- Vineet became president of HCL Technologies on April 5, 2005 and he began travelling around various HCL locations and talked to employees
- He started a “Mirror Mirror” initiative in which he interacted with employees and showed them also as to how fairly the company was performing for last 25 years and how it had been for past 5 years
- While his travelling, he identified the problems and thought of solutions which are as follows:
Problems identified | Solutions given |
Challenges in Sales and Delivery group | Created 2 operating groups – a 7 person Management Consult for Delivery and a 5 person Management Consult for Sales |
Company was facing a lot of challenges and was not able to perform well | Formulated a plan – company should move up the value chain and start going after larger, more complex engagements |
Employee working in silos and lacked unity Attrition rate was high Employees had “it’s okay to lose” mindset | He located his 30 people marketing team on his floor and met the team frequently Came up with ‘Employee first, Customer second” strategy |
The The way HCL approached to customers | He recommended to offer multi-service, unique propositions and go after big deals He created communications and marketing team of about 30 “Young Sparks” |
Vineet announced a three phase strategy focussed on value centricity:
- Objective – Rejuvenating employees and improving operating efficiency
- Form strategic partnerships with other companies in order to offer more value and end-to-end services for customers
- Plan to radically change the HCL business model by 2010 in which 50% of revenues would come from services which did not exist in 2005
Changes made to align HCL’s structure and systems with big deal strategy
- 5 LOBs – applications, enterprise consulting, technology, infrastructure and capital markets
- Second finance group
- Multi-Service Delivery unit - This group would directly participate with Sales and Delivery on bringing in value added business
- Consistency across LOBs - Automated processes , intranet use would induce transparency
Most important steps
- Employee first customer second strategy
- Multi service delivery unit
Case 2 - Deloitte and Touche consulting group
Introduction
Maria Chen, a senior consultant at Deloitte and Touché Consulting Group was hired by SKS Manufacturing, a Pontiac, Michigan based auto supplier to reduce inventory levels in the main plant. This was agreed to be a 12-week engagement. As a senior consultant, she was expected to analyze data, take initiative and responsibility of sub-projects and presentations, manage client teams and help prepare client proposals. Her objectives with SKS were to synchronize production operations with the sales and purchasing department, reduce inventory levels by $10 million, understand and fix the problems faced because of lack of communication within the different departments of SKS and ensure productivity of processes.
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