Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Key takeaways
Different approach to client engagement delivery to partly blame for the margin
weakness. The company expressed that its cost base is higher as it uses higher proportion
of laterals for project delivery. The company does not want to broaden its pyramid for
project delivery as it believes that using higher proportion of laterals increases their winrate
in new deals and also leads to higher customer satisfaction.
Pricing for HCL Tech is quite similar to its peers; the company refuted resorting to
aggressive pricing tactics to win deals in the market.
The company expects the client budgets for CY2011 to be more or less flat with
increased off-shoring. The clients are still spending cautiously on smaller size projects.
More spends would be on the change-the-business kind of projects as clients have spent
most of their budgets in the past 2 years on run-the-business.
HCL Tech uses its near-shore delivery centers mainly to cater to local clients in nearby
geographies (centers in Brazil and Mexico to cater to Latam market).
The company derives 12% of its revenues from non-linear projects.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Key takeaways
Different approach to client engagement delivery to partly blame for the margin
weakness. The company expressed that its cost base is higher as it uses higher proportion
of laterals for project delivery. The company does not want to broaden its pyramid for
project delivery as it believes that using higher proportion of laterals increases their winrate
in new deals and also leads to higher customer satisfaction.
Pricing for HCL Tech is quite similar to its peers; the company refuted resorting to
aggressive pricing tactics to win deals in the market.
The company expects the client budgets for CY2011 to be more or less flat with
increased off-shoring. The clients are still spending cautiously on smaller size projects.
More spends would be on the change-the-business kind of projects as clients have spent
most of their budgets in the past 2 years on run-the-business.
HCL Tech uses its near-shore delivery centers mainly to cater to local clients in nearby
geographies (centers in Brazil and Mexico to cater to Latam market).
The company derives 12% of its revenues from non-linear projects.
No comments:
Post a Comment