HCL Technologies’ onshore centers provide entry points for larger-scale upselling opportunities tied to cloud, AI and cybersecurity

Vendors are strengthening offshore and low-cost talent, particularly in India, to offset investment costs related to infusing digital into their portfolios as well as to supplement delivery and innovation efforts. For example, Atos opened a delivery center in the city of Tirunelveli in Tamil Nadu, India, that is expected to house 2,300 software engineers, and Capgemini opened two Digital Academies in India. As HCL Technologies (HCLT) has an established network of delivery and production facilities in India, the company has invested in developing its presence in EMEA and APAC during 2019.

In October HCLT announced the opening of an innovation center in Paris to support its emerging technology offerings and increase interactions between local clients and data scientists and engineers. The company also opened an innovation center in Hamilton, New Zealand, focused on blockchain, cybersecurity, cloud and AI services.

Earlier in the year, HCLT opened a digital transformation center in The Hague, Netherlands (February), and established a Google Cloud Platform Center of Excellence within its existing Cloud Native Labs in London (April) to bring skilled experts to the region and help increase adoption of the company’s Mode 2 services and solutions, particularly cloud- and digital-based services.

All of HCLT’s centers help the company strengthen its global brand, increase its proximity to clients and enhance its relationships, leading to upselling opportunities. HCLT brings cloud, cybersecurity and AI offerings to clients in a collaborative and innovative environment that enables the company to drive business value for clients and provide long-term revenue streams. However, as European vendors such as Capgemini and Atos hold market presence in the region, HCLT could face challenges in expanding its addressable market, forcing the company to focus to look for additional selling opportunities within its existing client base.

Note: More detail can be found in TBR’S 2Q19 IT Services Vendor Benchmark.

According to TBR’s 2Q19 IT Services Vendor Benchmark, total headcount growth for the 29 vendors tracked in the benchmark continues to expand, with low-cost headcount accelerating ahead of onshore and total headcount to support offshore delivery and innovation efforts. Onshore headcount is also increasing as vendors use their emerging technology portfolios to expand client bases.