IBM Helps HCL To Beat Wipro; HCL Hailed As 3rd Largest IT Services Firm In India
Shiv Nadar led IT behemoth HCL has now become India’s 3rd IT Services firm. This way, HCL has dethroned Wipro from the #3 spot and is only behind TCS and Infosys in the overall ranking.
Interestingly, IBM helped HCL to beat Wipro and secure #3 spot.
How did this happen? Keep reading to find out more!
HCL Beats Wipro, Becomes #3 Biggest IT Firm In India
In the last fiscal year, revenues from HCL touched $8.63 billion, which is 10% more than the previous fiscal. This massive push in revenues has helped HCL to beat Wipro, and claim #3 spot in the overall ranking.
In fact, this is a big deal, because, for the first time in last 7 years, the top three rankings of India’s $170 billion IT industry has shuffled, and Wipro has to climb down from the top 3 positions.
On the other hand, Wipro posted revenues of $8.12 billion, which is 3.8% more than what they achieved last fiscal. But the growth of HCL was much higher and more impactful.
Overall, HCL was able to churn out a profit of Rs 2568 crore, which was 15.3% more than previous fiscal.
But, how did this miracle happen?
It was IBM which was the catalyst here.
Did IBM Help HCL To Beat Wipro?
In incremental revenues, HCL was able to trigger $794 million in revenues in the last fiscal, which was highest among all IT firms.
38% of this revenue, which is $300 million was generated from IBM’s products, which HCL had bought last year. HCL also bought the rights of 7 more IBM products in the month of March this year, details of which are not available.
This way, it was directly IBM which resulted in a spectacular performance by HCL, and secure #3 position among the IT biggies.
C. Vijayakumar, chief executive officer, HCL Technologies. “We are in a very good spot and I believe this year will be a good year for us and for the industry”.
How IBM Helped HCL To Become #3 Biggest IT Services Company?
In December, 2018, HCL paid $1.8 billion to acquire 7 products from IBM, which was a big step from HCL to make their product portfolio strong. These were niche products in the domain of ecommerce and security, and marketing, and represented an untapped market of $50 billion, which HCL expected to explore.
At that time, HCL CEO Vijaykumar had said that they are expecting $650 million of annual revenues from these products. $300 million of revenues have been generated in the 5 months, and we may expect much more fireworks now.
We will keep you updated, as we receive more updates.