HCL SWOT Analysis – SWOT Analysis of HCL: HCL Technologies is an international technology company that is headquartered in Noida, India, and is a division of HCL Enterprise. It assists companies in rethinking their business models for the new digital age. It is a firm believer in taking risks and creativity. It has a global network of R&D delivery centers, delivery centers, as well as innovation laboratories. The company employs 27,000+ employees who they refer to as “Ideapreneurs” who are spread across 43 countries. The company is a major supplier to leading companies across a variety of industries, which encompasses 250 Fortune 500 companies.
The company is active in a variety of industries such as aerospace, automotive as well as defense, banking life sciences and retail, as well as oil and gas, and more. and provides a range consisting of services like IoT Digitalization, Cybersecurity, infrastructure, analytics Engineering Services, etc. In September 2018, HCL consolidated revenue of USD 8.2 billion.
HCL fun facts: HCL is regarded as that organisation that has the “World’s Most Modern Management Idea” by Times magazine.
About HCL – SWOT analysis of HCL
Company: HCL Technologies Ltd.
CEO: C Vijayakumar
Founder: Shiv Nadar | Arjun Malhotra
Year founded: November 12, 1991
Annual Revenue: INR85,665 crore
Profit | Net income: INR11,169 crore
Number of employees:
Products & Services: HCL’s Industry Software Products | HCL Augmented Network Automation (SON) | HCL iCE.X | HCL NFV Acceleration | HCL X-Haul | HCL SMARTWiFi
SWOT analysis of HCL – HCL SWOT analysis
SWOT Analysis Of HCL is brand-based. SWOT Analysis of HCL evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing HCL’s SWOT Analysis. Below is the detailed SWOT Analysis of HCL.
Let’s talk about HCL’s SWOT assessment.
Strengths of HCL – HCL SWOT analysis
1.) Key Strategies
The company is involved in new technologies that are disruptive, such as Digitalization, Analytics Cloud, Automation, and more. and these technologies form the basis of any company that wants to change its approach to. HCL has come up with a strategy that is known as the Mode 1-2-3 strategy that is distinctively HCL technology in the market marketplace and can gain trust from clients. The company’s focus is on training, re-skilling, and developing capabilities to ensure that the strategy is future-proof.
2.) Global Presence
The company is present in 43 countries and has employees from 140 countries working together. HCL technology has a vast global network of delivery systems that collaborate to provide comprehensive customer support to its customers. The approach to “Think Global, Act Local” is an interface that is local and adapted to the geo ecosystem. Within Europe, HCL has developed capabilities in Frankfurt as well as within Northern Ireland and Germany. HCL also has operations to operate in Malaysia, Japan, and Singapore. HCL is a massive company that can handle large clients through its global reach.
3.) Strategic Alliances and Partnerships
Strategic alliances with HCL have played an important contribution to the development of ecosystem-based innovations for the business. Alliances with world-class technology providers have enabled HCL technology to develop service offerings and solutions for various industries. These alliances have helped HCL speed time to market and decrease the chance of implementation and also reduce the expense associated with the ownership. HCL technologies can also assist alliance partners to increase the revenue they earn, and improve their offerings of products and services as well as increase their service offerings. The alliance’s strategic nature has helped HCL technology to establish a point of differentiating in addition
Weaknesses of HCL – SWOT Analysis Of HCL
The major rivals of HCL technologies include Infosys, Wipro Technologies, TATA Consultancy Services, and others. TCS TCS and Infosys are two large consulting firms, with revenues in the range of $5.05 billion, and $2.83 billion. HCL Technologies has recently suffered a defeat to Wipro in order to be the 3rd largest software services firm in India. HCL Technologies said that it has signed 27 transformational agreements with companies in the telecom retail, financial and retail sectors. The company has to implement strategic plans so that it can stay ahead of rivals.
2.) Struggle to keep existing clients
In the year 2016, HCL Technologies lost $1.5 billion in contracts, which led to a slowing in revenue growth. This is because HCL technologies were unable to sell more services by cross-selling to its customers, and its old maintenance contracts for infrastructure that are becoming a victim of competition such as Amazon’s Aws or Microsoft Azure. The pattern is alarming the analyst, so the company is trying to secure a higher percentage of renewals.
Opportunities of HCL – HCL SWOT analysis
1.) Expected growth
HCL Technologies is expected to be able to achieve 9.5-11.5 percent for FY19. HCL Technologies has projected profits of Rs. 2,540 in September, and an increase in the amount of 16.10 percent. HCL is certain that it will continue to grow in this direction for the next several years. HCL is a company with deep capabilities and a mindset of innovation, as well as is committed to CSR as well as inclusion and diversity. It makes use of this to stand out from other companies.
2.) The adoption of technology
The rate of adoption of the latest technological advancements is 10 times greater than smaller businesses and is predicted that in 2020 86% of businesses with greater than 5,000 staff members will implement cutting-edge technologies such as IoT( Internet Of Things) 64% of companies plan to use the edge computing technology, while 64% are expected to use AI(Artificial Intelligence)( while 56% use blockchain technology. At the present, industry leaders want to shift toward digitalization, and HCL technology can capitalize on this chance to ensure its success and the survival of its business.
3) Engineering & Research
HCL Technologies has developed centers across more than 30 countries. They are also adopting research-driven digitalization. The company has established itself as a leading global innovation and R&D company. HCL technology is a strategic partner with seven of the 10 top manufacturers of medical devices. HCL technology’s R&D centers have assisted HCL technology to create end-to-end engagement strategies, improving the customer experience of customers, and more. With more investments in R&D, the company will transform into a future-oriented enterprise.
Threats of HCL – SWOT analysis of HCL
1) Risky Bets
The strategy of the company is based on investments of $1.1 billion to license the intellectual property (intellectual property) from various companies and plans to develop products for clients who have the same IP. However, some IPs are old and are losing market part of the market to offerings offered by competitors. For example, HCL acquired IBM’s Lotus Notes and the product is clearly losing its value in the present day. It is not a good thing for the future. HCL technologies should invest in technologies that will ensure its future.
2.) Risks associated with Forex
HCL Technology may be reporting top and bottom-line growth, however, it has one aspect that has a significant impact on its loss of foreign exchange. The company has been continuously making losses in foreign exchange. HCL Technologies has taken huge hedges in the past which negatively affected its foreign exchange balance and, with the rupee declining, the losses are still quite excessive. The firm has to devise strategies to help average out the profits and losses of foreign exchanges.
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Overview Template of HCL SWOT analysis
HCL Technologies has gone a long way from its humble beginnings as a computer manufacturer to succeeding in several other sectors such as healthcare, banking, and finance. They are constantly improving their strengths in order to expand their possibilities and minimize threats and limitations
Some of HCL’s weaknesses, such as direct market rivalry and reliance on other nations for projects, are outweighed by its strengths, such as worldwide leader in technology, constant revenue growth, financial success, and a strong research and development team (R&D). This was accomplished by giving excellent prospects in India, such as digital transformation and unit expansion.
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