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|August 20, 1997||
HCL will go soft on hardwareThe Rs 20 billion HCL group is diluting its traditional focus on hardware to concentrate more on IT services. With the promoters of the group flagship, HCL-Hewlett Packard, parting ways, HCL is slated to increasingly focus on value-added services, systems integration and specialised solutions.
The group is now reworking the corporate strategy for HCL-HP, which will be formally rechristened HCL Infosystems Limited at the company's extraordinary general meeting on August 26.
In the next three years, HCL Infosystems hopes to generate 50 per cent of its gross revenue from services. While the hardware to services revenue ratio has progressively declined from 90:10 in 1995-96 to 70:30 in 1996-97, the company expects to reduce it to 50:50 by the turn of the century.
HCL-HP President and CEO Ajai Chowdhury said HCL Infosystems core businesses in the realm of services will be developing applications software, software exports, technology integration, consultancy and setting up customised info-structures for clients.
HCL Infosystems has identified telecommunications, manufacturing, banking and finance, electronic fund transfers, insurance, government payment systems, the coal and energy utilities as key market segments for grabbing a large slice of the IT services business. HCL-HP already has a considerable presence in the coal industry where it has developed applications software worth Rs 350 million.
Chowdhury said "HCL Infosystems will assume single-point responsibility to provide end-to-end solutions to local and offshore clients. The company will develop applications software, after the full range of consulting services, undertake networking and set up intranets."
Despite the sharper focus in software and services the Rs 7000 million HCL flagship will resolutely pursue its drive to expand the domestic PC market by manufacturing its own brands - Busybee, Infiniti and Beanstalk.
- Compiled from the Indian media
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