As a technology analyst I have followed HCL for many years – and their capabilities have changed over that time – particularly in Australia and New Zealand. When they entered the ANZ market they were somewhat unique – an Indian IT Service provider with views and opinions. One who was not just good at meeting RFP requirements and delivering technology projects, but also individuals who were empowered to challenge the status quo in their clients – to challenge clients to be better. But as several large managed services providers lost their way in ANZ, HCL stepped in and – for a number of years – became all about outsourcing and managed services. They grew their business significantly, but what seemed to be lost was that factor that set them apart. In focusing on good delivery they seemed to lose their differentiator.
However, I recently spent a few days with HCL and their clients in Adelaide and I can report that they are back. They are winning digital transformation deals. They are driving a technology industry agenda and are becoming an important force in the education and evolution of the high tech sector in Australia and New Zealand. Adelaide was chosen for the event as HCL wanted to showcase how they are making real investments in the local market, and how they are helping South Australia to transform itself and create new job opportunities both in Adelaide and in the regions. Their managed services contract with Elders is a great starting point for them – and in meeting and interviewing the Elders stakeholders, it is clear that it is a partnership – HCL has collocated to ensure that the HCL staff are side-by-side with the Elders teams – and they are doing a good job in driving innovation into the Elders business.
The Cricket Australia digital transformation contract is a big deal, and is really a great indicator of their capabilities. HCL won the contract from Accenture – showing that they can compete against and beat the best (Accenture is the biggest IT services provider in Australia today – and for good reason). Building off their success with Manchester United, HCL has won another important digital transformation deal with a global sporting brand. Personally, as a fan of the Australian women’s and men’s cricket team, I look forward to engaging with the fruits of their endeavours soon!
The main take away from the time spent with HCL is that they are growing their business here in Australia and across the entire Asia Pacific region – and that the growth is coming from many areas – not just traditional outsourcing contracts but also across the spectrum of digital transformation. Importantly they are also taking responsibility for that growth – bringing the market along with them as they look to help educate and employ the next generation of technology professionals.
HCL also seem to have mastered the ability to both respond to the standardised processes of the sourcing deal advisors as well as stand out as an individual company. While deal advisors play an important role, I often hear clients say that they can sometimes take the personality out of a deal. They bring comparisons between vendors to standard and measurable metrics – but you sign a deal with a person, you negotiate with a person, and it is people who deliver the solution. Winning deals is not just about proving the ability to deliver, but also convincing the client that they want or need to partner with the IT services business. Based on client feedback, HCL is mastering both sides of this process, and are earning the right to be considered in a broader range of deals.
If you are dealing with HCL, it may also warrant looking beyond the traditional measurable metrics. Speak to their leadership team both locally and globally, especially given their emphasis to bring in local leadership in their key markets . Get a feel for the culture of the company and whether or not it matches your culture or even sometimes challenges your business to be better. Services deals are ultimately about people, so spend time with the people – challenge them to come to the party. Put them under stress and see how they respond, as it is typically the hard times that define the longer term success of a partnership.
In the recent announcement, HCL Technologies and IBM stated that they were collaborating to assist organisations on their hybrid cloud journey. The joint services will offer seamless integration of their customers’ cloud across any private, public and on-premise environment. The hybrid cloud approach is aimed at eliminating the concerns of mixing the different cloud environments yet maintaining scalability and security. HCL will feature new refactoring and re-platforming services to allow organisations to migrate, integrate and manage apps and workloads on IBM’s cloud.
Speaking on the subject, Phil Hassey, Principal Advisor ,Ecosystm, thinks that “the most attractive aspect of this collaboration is that it will bring together the best of both vendors. IBM has such a long history in Infrastructure Management, whereas HCL has – most particularly in the past 5 years or so – built up capability in the space.”
The good news for tech buyers is that they will derive benefits from HCL’s customer knowledge and hands-on approach with the combination of IBM technology, cloud and – of course – Watson. HCL has acquired significant IBM assets that they could extract more value from. The infusion of AI into hybrid cloud will lead to increased automation, improved outcomes and effective investments by clients.
When we look at the individual benefits to IBM and HCL from this deal, Hassey says, “IBM needs new customer logos and HCL can provide that. Conversely, IBM can provide larger enterprise clients to HCL. However, it is not a straight customer swap, they will work to maintain relationships independently.”
IBM is pushing hard towards their plans to capture more market with many big deals announced recently – and undoubtedly many more yet to happen. It is well-documented that IBM has gone through many reinventions but is still deeply entrenched in many of the world’s largest organisations. “IBM is such a large machine that different aspects and offerings are always operating at different speeds”, says Phil. “It needs to accelerate the uptake of Watson, and Watson being available on any cloud will help this.”
The hybrid cloud is desperately looking for big scale integration and transformation capabilities, so this agreement between HCL and IBM will hopefully help kickstart that.