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HCL - Sourcing and Procurement

Vendor Analysis

by Janet Irwin

published on Apr 08, 2018

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Report Overview:

This NelsonHall assessment analyzes HCL's offerings and capabilities in sourcing and procurement.

Who is this Report for:

NelsonHall’s Sourcing & Procurement Outsourcing vendor assessment for HCL is a comprehensive assessment of HCL’s sourcing and procurement offerings and capabilities designed for:

  • Sourcing managers monitoring the capabilities of existing suppliers of sourcing and procurement and identifying vendor suitability for outsourcing services
  • Vendor marketing, sales and business managers looking to benchmark themselves against their peers
  • Financial analysts and investors specializing in the F&A BPO sector.

Scope of this Report:

The report provides a comprehensive and objective analysis of HCL’s sourcing and procurement offerings, capabilities, and market and financial strength, including:

  • Analysis of the company’s offering 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:

HCL Technologies (HCL) first entered procurement BPO services in 2004, providing a manufacturing sector client of IT infrastructure management and SAP maintenance services with PO processing. The client was facing difficulties finding appropriate resources in its San Antonio operations.

Between 2004 and 2008, HCL's focus on procurement BPO evolved towards broader P2P services, for indirect spend on a shared services model; then it added more flexibility to its offerings, which continued to focus on transactional procurement outsourcing services

In 2009, HCL entered a two-year partnership with Xerox to add sourcing expertise to its sourcing and procurement (S&P) offerings portfolio; the intention being for Xerox specialists to support HCL's clients of procurement transactional support services with category management services. The partnership was targeting opportunities to support manufacturers in their product development (HCL has extensive mechanical engineering capabilities). While the partnership helped HCL's initial development of services in managing RFx and e-auctions, it did not develop into a strategic partnership.

Today, HCL has other partners for category management expertise: ProcureAbility, ISG, and Chain IQ. It offers S2C services around RFx and e-auction support, P2P transactional and tactical services, spend analytics, and subsequent opportunity assessments on the back of sourcing support contracts.  

Table of contents:

Table of contents:

  • Background
  • Revenue Summary
  • Key Offerings
  • Delivery Capability and Partnerships
  • Target Markets
  • Strategy
  • Strengths and Challenges
  • Strengths
  • Challenges
  • Outlook

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