The technology arm of the HCL Group, HCL Technologies was a major telecom
software player from India in FY 2001-02. It continued with its strategy of
executing high-value communication software and service projects. Amidst a major
scare that companies with high-telecom exposure would be severely impacted, HCL
Technologies impressively managed to hold on to key accounts like Cisco Systems,
Agilent, Toshiba, and Vitesse Semiconductors. In fiscal 2001-02, it made some
significant wins like the Motorola C-Port project to develop network processors.
On account of these major accounts, HCL Technologies continued to generate a
significant revenue from the telecom vertical. In fiscal 2001-02, its exposure
to the telecom sector is estimated to be as high as 25 percent of its overall
revenues, which translates to a telecom revenue of Rs 388 crore.
HCL Tech has been one of the most versatile Indian companies, with a varied
range of expertise. In digital signal processing (DSP), it has done projects for
Hitachi, Terralogic, and Sony. It has been a key partner to the networking
leader Cisco systems. EMC and NCR have been beneficiaries of its software
expertise in the area of network storage.
Telecom market is still down. So, while short-term prospects may not be rosy,
the same cannot be said for its long-term prospects.