Thursday, January 20, 2011

HCL Technologies - Vision 2015

Few weeks ago, I had criticized in this blog about HCL Technologies CEO Vineet Nayar's comment on Cloud Computing...

Now, its time to give a Bouquet!. In India, its Quarterly Financial Results season for the companies. And IT services companies' results are making headlines in Indian newspapers. Some are encouraging, Some are upsetting, Some are optimistic!. Overall, the Growth Story of Indian IT services companies are in good shape and continue to progress..

Ok, the reason for Bouqet is this - In an interview, Vineet has articulated the Vision for his company, HCL, in 2015. The vision for the company is to transform itself from being a services company to a utility company, that is backed by good amount of Intellectual Property. Vineet is banking big time on Cloud Computing to accomplish his vision of becoming a Utility Company!.

For the first time, I am coming across a CEO who is able to articulate a visionary statement rather than mincing words like - becoming a world class company, becoming a first class supplier of IT services, high-end value chain, outcome based services, etc...All these are mechanics or means, not the end. In Vineet's case, He is clearly able to articulate a Future State for the company. Thats'a big deal!.

When I heard the utility company lingo, it reminds me similar companies that I am aware of - my telephone service, electricity service or even water service. I often interact with Telephone / Broadband service provider and often get a compliant number to track. Usually, the services are always-on, always available, and service person turns up promptly on request. The requirements of a Utility company in my perspectives are - a Good Product, Good Customer Care/Exceptional Service, Great Tariffs/Inexpensive Rate Plans, Solid/Reliable Service Delivery Platform/Accessibility. Can we expect a similar business model from IT services company in future?

Now, some of the hard-pressed questions:

1. How much of the investments HCL is making in R&D towards achieving its vision?
2. Utility Computing, Means, Transfer of Ownership of Systems and Platforms, Not just Transfer of People (outsourcing). Utility Computing is a captial-intensive business, where the service provider is expected to own and manage the actual productized service. Is HCL ready for it?
3. What is the positive/negative impact of becoming a utility company to its stakeholders (including employees)?

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