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The Axon win by outbidding Infosys was a major highlight but it was tough times for HCL Tech. The last two quarters from April to Sept, 2008 were taxing as growth was arrested in the financial services space. HCL tried strengthening its position by making a $40 mn acquisition of US-based Capital Stream, a lending automation solutions provider. The company continued its inorganic growth with the acquisition of BPO company Liberata Financial Services. Life sciences emerged as the fastest growing vertical; engineering and R&D also paid good dividends. Besides this, interestingly, at a time when most IT companies were either laying off or putting a freeze on hiring, there was increased investment on hiring and training in HCLTs sales and marketing teams.

In order to increase non-linearity of revenues, HCLT continued to stick to its strategy of creating a multi-services market, serving bigger clients, cracking bigger deals and playing up with its geographical mix. What was apparent was the transformation deals that HCLT focused on, also indicating its strategic direction. The value of the deals in the two quarters was worth $600 mn. It continued its winning streak as it signed over $1 bn in contracts in the last quarter. The quarters also saw HCLT launch some degree of IP on the SAP platform. Besides this, there was also a significant augmentation in the fixed and output-based model of pricing.

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