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HCL Technologies - Software Testing

Vendor Analysis

by Dominique Raviart

published on Feb 05, 2015

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Report Overview:

HCL Technologies (HCL) was founded in 1991 and is a 66% owned subsidiary of HCL Corporation. It is headquartered in Noida (Uttar Pradesh, India) and is listed on the Indian National Stock Exchange (Mumbai). HCL Technologies is the fifth largest Indian-centric IT and BPO services vendor, and one of the three fastest growing.

Who is this Report for:

NelsonHall's Software Testing vendor assessment for HCL Technologies is a comprehensive assessment of HCL's software testing offerings and capabilities designed for:

  • Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for software testing services
  • Vendor marketing, sales and business managers looking to benchmark themselves against their peers
  • Financial analysts and investors specializing in the software testing sector.

Scope of this Report:

The report provides a comprehensive and objective analysis of HCL Technologies' software testing offerings, capabilities, and market and financial strength, including:

  • Analysis of the company's offerings and key service components
  • Revenue estimates
  • Identification of the company's strategy, emphasis and new developments
  • Analysis of the profile of the company's customer base including the company's targeting strategy and examples of current contracts
  • Analysis of the company's strengths, weaknesses and outlook.




Key Findings & Highlights:

In its in fiscal year (FY) 2014 which ended June 30, 2014, HCL Technologies had revenues up 14% to ~$5.4bn. HCL Technologies has ambitious growth goals and wants to reach $10bn in revenues by FY 2016. Headcount, as of September 30, 2014 is 95.5k.

HCL created its independent verification and validation services (IV&V) practice of full time career testers in 1999, during Y2K preparation projects. HCL's IV&V practice had a background in providing testing services for its product engineering service unit, which itself is the background of HCL Technologies.

In calendar year (CY) 2012, HCL made a very significant organizational change by grouping together into its IV&V unit its full time testers from other business units, e.g. EAS, engineering and R&D services, and custom application services. Following the reorganization, HCL Technologies also renamed its IV&V practice as Enterprise Quality Services (EQS).

In CY 2014, EQS changed its name to Business Assurance & Testing Services (BATS), to reflect its service portfolio shift towards QA and business outcome based services. BATS is a horizontal line within HCL. BATS increased its career tester headcount very significantly: from ~2.5k to ~10k in CY 2012, and headcount is now ~12.6k.

In addition to the 12.6k career testers in its testing practice (14% of HCL's total headcount), HCL has another ~2.2k business analysts, who spend ~60% of their time in functional testing and other services (including SAP and ERP functional analysis), and 40% on testing.

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