HCL outperforms rival Indian outsourcers

HCL European president Rajeev Sawhney

Indian IT outsourcing firm HCL Technologies has increased annual sales by 42 per cent, despite challenges including a skills shortage and depreciation of the US dollar.

The growth is 10 per cent above the Indian IT industry average of 32 per cent.

The value of the Indian outsourcing market will rise from $39bn (£19.6bn) this year to $100bn (£50bn) in 2011, said HCL Technologies European president Rajeev Sawhney.

‘Much of our focus will now be on developing total IT outsourcing deals, managing attrition and addressing key areas such as financial services, pharmaceuticals and telecoms,’ said Sawhney.

HCL predicts continued expansion following annual revenues of almost $1.4bn (£703m) and fourth-quarter sales of $395m (£198.5m).

The figures show HCL Technologies outperforming key rivals TCS and Wipro, which both increased annual profits 41 per cent. But it is still behind Infosys’ 44 per cent growth rate.

Europe is a major growth market for HCL, with revenues from European firms up 54 per cent in the past 12 months.

‘It is no longer a question of whether to outsource to India, but what will provide it with the best value,’ said Sawhney.

The company is also strong in the UK market. This year’s deals include BT, BAE Systems and Lastminute.com ­ it also signed a multimillion-pound, multi-year contract with legal firm CMS Cameron McKenna.

In the coming year the Indian firm’s focus will be on selective partnerships in key sectors such as aerospace and financial services, said Sawhney.