We will have a large play in vendor consolidation deals: HCL CEO - Times of India
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BENGALURU: HCLTech CEO and MD C Vijayakumar is bullish on the opportunities emerging from vendor consolidation and the growing share of cost take-out deals in the overall deal mix. “Almost $115 billion worth of consolidation opportunities are expected in the next two and a half years. I see that as a very good opportunity. I think we are very well placed to benefit from it,” he told TOI post the company’s announcement of its Q3 earnings.
HCL signed seven large services deals and ten software deals with a total contract value of $2.3 billion in Q3, a 10% growth year-on-year. It signed three large deals focused on vendor consolidation.
Vijayakumar said there is more demand now for what he calls IP operating model transformation, where customers are pivoting to a product-led operating model. “When you want to do that you need to integrate your application and infrastructure – run and change. It's beneficial to have one provider looking into it end to end,” he said.
Asked about cloud migration opportunities in the financial sector, Vijayakumar said, “There are lots of big financial services firms who have not made a big move. That's also helping us build some opportunities,” he said.
Asked about the slowdown impacting client spending, he said digital transformation and associated spend is quite intact. “But there could be some peripheral things which customers may want to put low priority on. The focus on efficiency and cost is also increasing in some of the segments and that's also driving good deal flow into our pipeline,” he said.
On employee additions, Vijayakumar said it would depend on demand. “It keeps changing. We monitor it on a regular basis. In the last 12 months, we've added about 30,000 freshers and we expect it to be a similar number in the next financial year," he said.
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HCL signed seven large services deals and ten software deals with a total contract value of $2.3 billion in Q3, a 10% growth year-on-year. It signed three large deals focused on vendor consolidation.
Vijayakumar said there is more demand now for what he calls IP operating model transformation, where customers are pivoting to a product-led operating model. “When you want to do that you need to integrate your application and infrastructure – run and change. It's beneficial to have one provider looking into it end to end,” he said.
Asked about cloud migration opportunities in the financial sector, Vijayakumar said, “There are lots of big financial services firms who have not made a big move. That's also helping us build some opportunities,” he said.
Asked about the slowdown impacting client spending, he said digital transformation and associated spend is quite intact. “But there could be some peripheral things which customers may want to put low priority on. The focus on efficiency and cost is also increasing in some of the segments and that's also driving good deal flow into our pipeline,” he said.
On employee additions, Vijayakumar said it would depend on demand. “It keeps changing. We monitor it on a regular basis. In the last 12 months, we've added about 30,000 freshers and we expect it to be a similar number in the next financial year," he said.
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