While the predicted third wave may impact business, HCL Technologies is confident to deliver double-digit growth in the current fiscal year thanks to a strong pipeline of transactions and hiring momentum, said a senior manager of the company.
“I know wave three [of the pandemic] could have implications, but for transactions already booked they are being executed, I think everything should be fine, ”said C. Vijayakumar, CEO and Managing Director of HCL Technologies, responding to a question about the impact on business. due to the third wave expected in markets such as Europe, USA and India.
Previously chairman and CEO of the IT services company, Mr. Vijayakumar was named CEO and CEO for five years earlier this week, after Shiv Nadar resigned as CEO and director at the age of 76. years. Mr. Nadar will assume the role of Chairman Emeritus and Strategic Advisor to the Board of Directors of the Company.
Mr Vijayakumar added that the IT giant has seen good bookings over the past two quarters and many of them are running. He said the company had also significantly increased its hiring with the addition of 7,500 people during the April to June quarter and about 9,000 people during the January to March period.
“Some of them are being trained and they would be ready to participate in programs. So we feel good based on all these metrics, and think it’s possible [to achieve double digit growth]… The overall dynamics of reservations are very strong, our pipeline is solid, our hires are solid. We therefore expect good quarters to come, ”added Mr. Vijaykumar.
The large transaction pipeline is fueled by factors such as increasing digitization, cloud migration, industry 4.0, cybersecurity and overall cost optimization.
Asked about expanding into new geographies, Vijayakumar said the company classified them as focus countries and new frontier countries.
The targeted countries are those where HCL Technologies is already present but wishes to accelerate its growth. These countries are France, Germany, Australia, Japan and Canada. On the other hand, the new border countries include South Korea, Vietnam, Taiwan, Brazil, Mexico, Spain and Portugal. From these countries, HCL Technologies works for its global customers but does not work for customers headquartered in these countries.
“This is where we build local sales teams to find customers. So that’s the strategy, and I think it will take some time. Our target countries are already generating good income and good growth. In the countries of the new frontier, things are starting from scratch, so it will take some time, ”Vijayakumar said.
Regarding employees returning to the office after vaccination, he said the work-from-home model would continue for around half of the company’s employees. “There will be some sort of system that will be put in place where they will come to the office for a certain length of time on some days and work from home on the other days. I think the hybrid model will be sustainable in the long run, ”he said.