For HCL Technologies (HCLT), the year marked a significant shift in strategy-moving away from small customers to large multi-service deals and building focus on a co-sourcing model. The focus on large deals gave early results during the year with three multi-year, multi-service transformational wins of over $50 mn value. HCLT bagged 96 deals in all, with five huge ones. The Rs 1,500 crore DSG International deal turned out to be the largest win by any Indian company in the history of IT so far.

To focus and develop large customers, and service them for long-term, HCLT is in the process of gradually phasing out small clients and also those who do not match up with its strategic objectives. Among its on-going deals, six are in the over $20 mn range and 14 over $10 mn. HCLT has also been working towards de-risking its service line, geography and client concentration. The revenue mix is being shifted away from traditional IT services, even as Europe is being focused upon. HCLT will have to drive growth across the entire client base. Towards the end of 2005-06, its top 10 and top 20 clients contributed around 38% and 49% of the revenue respectively.

BPO and R&D services remained in the positive growth trajectory during the year, as it acquired AnswerCall Direct call center in Ireland, and set up exclusive design centers for NEC, IBM and Hamilton Sundstrand. HCLT also built up some expertise in package implementation and enterprise applications. Its strength in remote infrastructure management, whose head Vineet Nayar also became president of the company, emerged as a key differentiator, and Autodesk deal is a case in point. Also, with the focus on charting the un-contested territories, emerging services was seen as another growth driver.

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