HCL Technologies Annual Report 2021-22: 23674 - HCL - ARA2022 - 00-Cover - Indd 4
HCL Technologies Annual Report 2021-22: 23674 - HCL - ARA2022 - 00-Cover - Indd 4
HCL Technologies Annual Report 2021-22: 23674 - HCL - ARA2022 - 00-Cover - Indd 4
Corporate Overview
Message from the Chairperson 2
Letter from the CEO & Managing Director 4
Founder and Board of Directors 7
Leadership Team 8
At a Glance 10
Sustainability 12
Corporate Social Responsibility 15
Powered by People 20
Global Presence. Accelerated. 28
Awards and Recognitions 30
Next-Gen Tech. Accelerated. 32
Business Highlights 34
CloudSMART 35
Strategic Alliances 36
18 Powered by People
IT and Business Services
Digital Foundation
Digital Business
38
40
41
Digital Operations 42
Notable Analyst Recognitions 43
Engineering and R&D Services 44
Products & Platforms 46
Management Discussion and Analysis (MDA) 48
Directors’ Report 93
Financial Performance
Standalone Financial Statements 227
Consolidated Financial Statements 294
Statement under Section 129 370
Corporate Overview 1
Dear Shareholder,
Even as the world continued to evolve and shift in the wake of COVID-19,
I am proud of HCL Technologies’ commitment to both our people and our
clients in another year of unpredictability – and another year of acting
responsibly, and going above and beyond.
As we emerge from this once-in-a-century pandemic, We have engaged with various stakeholders and, using
we are navigating a phase of global supply chain a risk and responsibility lens, identified 12 material ESG
disruptions, geopolitical conflicts, and deglobalization. topics that have become our core focus. We also made
Within some of these trends are several opportunities, the important commitment of greenhouse gas emission
especially in digital, cloud, and engineering, as technology (GHG) reduction, and we’re strengthening our data and
becomes an essential part of our lives and a force for good. reporting initiatives in this area.
At HCL Technologies, we have continued to learn, build
and grow efficiently while expanding our client base
and growing our share of wallet. With the depth We recognize the impact that a business
and breadth of our portfolio, our strategy of establishing
like ours can deliver in elevating communities
nearshore presence, and deep relationships with our
clients, we remain well positioned to leverage these globally, and we continue to improve our
emerging opportunities. efforts and take decisive actions that benefit
people and planet.”
The HCL Foundation, through which we have invested more
At HCL Technologies, we have continued than ࡩ900 crores to-date in social development efforts,
to learn, build and grow efficiently while continues to lead the way for serving communities throughout
expanding our client base and growing our India across education, health, water, sanitation and hygiene,
share of wallet.” skill development and livelihoods, environment, and disaster
risk reduction, response and management. HCL is also
When I look back on FY22, I’m particularly proud of the serving communities in global locations where we are
work we did to bolster our commitment to sustainability present, through direct interventions and partnerships.
and corporate social responsibility (CSR). While our I am pleased to share that, in recognition of these efforts,
Board of Directors made solid progress with its diversity, we were named Corporate Citizen of the Year 2021 by The
inclusion and environmental, social and governance (ESG) Economic Times.
sub-committee work, we embraced a new overarching Ethical and sustainable business practices are of paramount
sustainability strategy built around the tenets of Act. importance to us and are embedded into everything we
Pact. Impact. do at HCL Technologies. We recognize the impact that a
• ACT: We understand that impact starts with us. We act in business like ours can deliver in elevating communities
the most responsible and sustainable manner. We ensure globally, and we continue to improve our efforts and take
we use every resource efficiently to maximize value decisive actions that benefit people and planet.
• PACT: Our relationships go beyond a formal contract with I would like to thank and express my humble gratitude to
our stakeholders. We are working for a sustainable future our shareholders for always believing in us. Together, we
in collaboration with our clients, partners, communities, shall continue to drive our growth strategy and build on
and all stakeholders the achievements of FY22.
Corporate Overview 3
Dear Shareholder,
Corporate Overview 5
Employer of choice Our bookings have also remained strong, cutting across
At HCL Technologies, we have taken pioneering steps in verticals, geographies, and service lines. From a YoY
our talent strategy. We are very proud of our global team perspective, our total contract value (TCV) has increased by
of diligent, diverse and passionate people, all 209,000+ of 14% and annual contract value (ACV) has grown 21% YoY.
them across 52 countries, who are delivering extraordinary
Going forward
experience to our clients under the leadership of a world-
The positive financial impact of our chosen business
class management team and rooted in our culture of
strategies has been significant. Over the last three years,
“Ideapreneurship”. Not only are we re-skilling our employees
we have reached a momentous milestone of 10% CAGR,
at a massive scale on next-gen technologies, but we are
representing $11.5 billion revenue, despite the challenges
also creating net new talent pools for the industry.
brought on by the pandemic. During the same period, our
operating cash flow grew by 21% CAGR.
Robin Ann Abrams Dr. S Shankara Sastry Simon John England R Srinivasan
Director Director Director Director
C C
Corporate Overview 7
Vijay Anand Guntur Anil Ganjoo Ashish Kumar Gupta Kalyan Kumar
President, Chief Growth Officer, Chief Growth Officer, Chief Technology Officer
Engineering and R&D Services Americas, Europe and Africa, and Head, Ecosystems,
TMT and RCPG Industries Diversified Industries and Chief Product Officer,
Products & Platforms
Corporate Overview 9
$11.48B 85,651
Revenue Revenue (ࡩCr)
13.6% increase YoY
16,951
Profit before tax (ࡩCr)
18.9%
Profit before Taxes, Finance
6.9% increase YoY costs and other income in FY22
16,900
Operating cash flow (ࡩCr)
52
New large deals signed
4 Year CAGR: 19.4%
$8.3B
New Deal TCV
60%
Total increase in $100M+
14% increase YoY clients over past three FYs
14.1%
CAGR*
13.2%
CAGR*
FY ‘18 FY ‘19 FY ‘20 FY ‘21 FY ‘22 FY ‘18 FY ‘19 FY ‘20 FY ‘21 FY ‘22
11.5%
CAGR*
12.5%
CAGR*
* 4 year CAGR
FY ‘18 FY ‘19 FY ‘20 FY ‘21 FY ‘22 FY ‘18 FY ‘19 FY ‘20 FY ‘21 FY ‘22
Client category 16
15 15
(Number of clients)
10
8
$100M+ 43
35
28 29 30
$50M+ 118
95 96 96
87
$20M+ 208
171 178
160 166
$10M+ 349
308 318
283
264
$5M+
882
791 809
561 623
$1M+
FY ‘18 FY ‘19 FY ‘20 FY ‘21 FY ‘22
Corporate Overview 11
Our commitments
We are committed to long-term value creation for our
stakeholders, and our philosophy has always been about
incorporating the right ESG practices to ensure a sustainable
present and future. Our approach is designed to maximize
our contribution toward the UN Sustainable Development
Goals (SDGs). Our sustainability strategy is based on three
guiding principles:
• ACT: We understand that impact starts with us. We act in
the most responsible and sustainable manner. We ensure
we use every resource efficiently to maximize value
• PACT: Our relationships go beyond a formal contract
with our stakeholders. We are working for a sustainable
future, in collaboration with our clients, partners,
communities, and all stakeholders
We are embedding sustainability into everything we do at HCL • IMPACT: We focus on creating sustainable impact
Technologies. With a comprehensive environmental, social, through all our initiatives and activities
and governance (ESG) framework, we are delivering Aligned to this, the Board committed to focus on ESG and
sustainable, long-lasting impact through our corporate recently reconstituted the Board’s Diversity Committee
actions and our pacts with stakeholders. (created in April 2016) to become the ESG and DEI
Committee. The Company also hired this year a Global
Head of Sustainability.
Using the lens of risk and responsibility, HCL has defined
12 material topics and created a set of 100 performance
metrics aligned with global ESG standards and guidelines
to monitor the progress in these 12 dimensions.
The 12 material topics are:
E 1. Climate Change
2. Eco Efficiency
S 3. Human Capital
4. Local Hiring
5. Diversity and Inclusion
6. Talent Attraction and Retention
7. Work Environment
8. Citizenship
3.7 million lives around 70% reduction in per capita Scope 1 and 2 GHG
emissions in the last decade.
Impacted through HCL Foundation’s initiatives: education,
HCL strongly believes that diversity, equity, and inclusion
health, water, sanitation and hygiene, skill development and
(DEI) are key to the success of the Company. The Employee
livelihoods, environment, and disaster risk reduction,
Resource Groups, Multi-Cultural Groups, and Diversity
response and management.
Councils help us drive our charter across the globe. We are
focused on dimensions including people of color, women,
55% LGBTQ+, people with disabilities (PWD), neurodiversity and
mental health.
Over half of the beneficiaries of the HCL Foundation’s projects
are women HCL recognizes the demand for technology and
digitalization in the journey to a sustainable future. HCL is
therefore committed to enhancing the ESG skills of its
30% reduction employees to ensure that sustainability is incorporated in all
its engagements with clients and partners. HCL continues
Scope 1 and 2 emissions compared with our baseline
to engage with various business forums to showcase the
in FY 2020
importance of digitalization in the transition to a more
sustainable world.
17.7%
Renewable energy in our total energy consumption globally
844,000+
Saplings planted to support the environment
21x
Through community initiatives, we recharged 21 times more
water, compared to consumption across Indian operations
Corporate Overview 13
Ranked “A”
HCL Technologies received an “A” ranking in the
MSCI Ratings which positions us in the top performers
among peers
At HCL Technologies, our ability to deliver on our mission Today, the HCL Foundation drives five flagship programs
continues to be rooted in part to our strong corporate – HCL Samuday for integrated rural development; HCL
social responsibility toward the communities in which we Grant to empower non-profits for community-led rural
live and work. Whether it is collaborating with global upliftment; HCL Uday to address developmental issues in
forums, local communities, or governments and charity urban areas; Clean Noida to transform into one of the
organizations; contributing to crisis relief funds for cleanest cities in India; and HCL Harit for environmental
Ukraine or COVID-19; contributing to the efforts for a action. In addition, various other special initiatives are
greener world or environment preservation; providing undertaken by the HCL Foundation. These include – Power
education and employment to under-represented groups of One, Sports for Change, the HCL Foundation Academy,
and communities; or offering health and food assistance My E-Haat, and response to humanitarian crises and
– HCL proudly holds the CSR flag as an integral part of its disaster mitigation. These programs are designed to bring
growth journey. about lasting positive impact on people and the planet
through long-term sustainable programs that focus on
Built on a strong foundation in India
education, health and sanitation, skill development and
In India, HCL Technologies implements its Corporate
livelihood, environment, and disaster risk reduction and
Social Responsibility agenda through its CSR arm, the
response. Child protective strategies, inclusion, and gender
HCL Foundation. With a cumulative investment of more
diversity remain central in all initiatives of the HCL
than ࡩ 900 Cr, the Foundation has impacted more than
Foundation, ensuring equitable development and
3.7 million lives across 22 states and three union territories
opportunities for all.
of India. In recognition of these efforts, HCL Technologies
received the prestigious Corporate Citizen of the Year
Award 2021 from The Economic Times for championing
social change and good governance.
Corporate Overview 15
The HCL Foundation conducts emergency rescue missions The HCL Foundation supported rug
to save biodiversity through Mobile Veterinary Service unit. weaving center run by rural women.
Corporate Overview 17
Helping those affected by the Ukraine crisis. In France, HCL partnered with Apprentis d’Auteuil to
• Partnered with the European Food Banks Federation and support child protection and high-quality education
other NGOs to direct donations opportunities for youth. Employees also organized donation
• Extended co-financing housing expenses to employees drives to benefit homeless youth and children’s hospitals
who lost their homes in the conflict through the year.
• Offered employees medical assistance, legal support, In Italy, HCL employees focused on the environment by
and salary advances participating in a “plastic-free day” to clean up local parks
• Fast-tracked recruitment of Ukrainian refugees who and beaches. Working with La Stella di Lorenzo in Rome,
applied for jobs HCL volunteers raised funds to purchase defibrillators
for schools.
In Portugal, in partnership with ONG Liga and Protecção da
Natureza, HCL employees organized beach cleanups and
helped remove invasive species to revitalize the local flora.
Corporate Overview 19
209,000+
Ideapreneurs across the globe, but that’s not the only number that matters.
Truly diverse Glocalization (employees hired locally in global markets)
Corporate Overview 21
1.
Expand global presence
with new global delivery
Alternate Research- Higher
centers/New Vista locations pool of backed education
local talent target cities partnerships
2.
Create local jobs. Hire and
train high school/Class XII
students, undergrads, and
recent grads to create
alternate talent pool
3.
Invest in training and students San Antonio, Cary, Troy, • SASTRA University, India
upskilling for next-gen Horsham, Hartford,
• College and university • Amity University, India
skills across all stages Cincinnati)
graduates and under-
of career cycle • Southern New Hampshire
graduates • India (Lucknow, Madurai,
Nagpur, and Vijayawada) University, US
• Off campus willing to
restart or relaunch their • Other countries • Macquarie University,
Australia
4.
Collaborate with careers (returning moms, (Canada, Costa
government and clients veterans) Rica, Romania, • Horizon Campus,
for new job creation/hiring Sri Lanka, Vietnam) Sri Lanka
and to encourage diversity
• IIIT, Sri Lanka
and inclusion
Corporate Overview 23
Rolando Narvaez
HCL Technologies, Mexico
HCL Technologies employees in a training session in Cary, North Carolina, US. Ideapreneurs in Vietnam.
99.2%
of female employees return after their maternity leave
Corporate Overview 25
Diversity, equity
and inclusion
Celebrating passion
At HCL Technologies, employee engagement and well-being
are regularly measured through a variety of surveys and
“check-ins”. Last year, the overall employee engagement
remained at the same level while many of the indices saw
an improvement. Employee feedback also reiterates the
positive impact of effective employee communication,
virtual-first approach and stable leadership.
The Company strives to strengthen employee experience
through the collection of – and action on – employee
feedback. This is reflected in the approach to hybrid
working and health and well-being campaigns focused
on wellness, family, employee passion, and celebrations.
At HCL, people also actively engage with numerous Employees engaged in wellness and social impact initiatives.
Corporate Overview 27
210+
Delivery Centers
Our delivery centers support clients
and partners globally by providing
access to the latest technology
expertise and business-oriented
technology solutions.
60+
Innovation Labs
Our innovation labs help ideate,
develop and deliver futuristic
solutions through next-gen
technologies for the business
transformation journeys of our clients.
100+
Engineering Labs
Our engineering labs help design, test,
and accelerate product development
and certification by leveraging the
latest technologies to create
immersive customer experiences.
52
Countries
India Canada Belgium Turkey
United States Brazil United Arab Hungary
United Kingdom Germany Emirates Thailand
Countries Philippines Japan Hong Kong Saudi Arabia
Australia Italy Israel South Korea
Poland France Czech Republic Panama
165
Nationalities
Sweden
Ireland
Mexico
China
Singapore
Norway
New Zealand
Switzerland
South Africa
Denmark
Spain
Indonesia
Romania
Vietnam
Portugal
Taiwan
Sri Lanka
Costa Rica
Guatemala
Colombia
Netherlands Finland Austria Egypt
Malaysia Lithuania Argentina Bulgaria
18+
New Vistas locations
India United States
Lucknow, Uttar Pradesh Cary, North Carolina
Madurai, Tamil Nadu Frisco, Texas
New Vistas Nagpur, Maharashtra Hartford, Connecticut
Vijayawada, Andhra Pradesh Horsham, Pennsylvania
New Vistas is HCL’s strategic foray into Troy, Michigan
Sri Lanka
emerging cities across the world which Cincinnati, Ohio
Colombo
are abundant in talent, are strategically Sacramento, California
located, have infrastructure to offer Vietnam
Costa Rica
world-class IT delivery services, and Hanoi
San Jose
offer better quality of life. Ho Chi Minh City
Canada
Europe
Vancouver, British Columbia
Romania
Toronto, Ontario
Corporate Overview 29
Leadership Positions.
Accelerated.
Corporate Overview 31
The Metaverse
As a pioneer of technologies, HCL intends to explore
emerging Metaverse trends under its MetaLabs
by HCL Technologies initiative.
MetaLabs is an “always-on” environment, a place where
one can find 40+ HCL industry creator zones in the world
of virtual reality, powered by 600+ Ideapreneurs and 300+
start-up creator partners. MetaLabs helps clients create
their evolved immersive digital environments to start their
Metaverse journeys. Clients are able to access a pre-
existing repository of over 40 industry use cases. For
instance, in a workspace collaboration use case, clients
access a base experience zone to see how one can operate,
conduct meetings, host clients, and run ideation
workshops. This enables a hands-on experience after
which clients can extract the use case and incorporate it
into their sandbox environment.
Strategic priorities and areas of exploration
• The Metaverse as a cloud-based transformation initiative
at HCL Technologies
• Training and education use case as an area of interest
• Regulatory and governance policies in the Metaverse
• Ubiquitous connectivity and secure digital access
Decentralized Finance
The rapidly growing space of Decentralized Finance
(DeFi) now accounts for global assets worth $250 billion.
Clients visiting the HCL Technologies pavilion at the World
Economic Forum were able to experience the Metaverse. It holds the potential to disrupt the financial services industry
by creating a range of affordable products for the two billion
unbanked population of the world. Our next-generation
technologies and engineering services allow us to create
the frictionless financial models that characterize DeFi.
With domain expertise in open banking, digital banking,
digital lending and mortgages, and digital payments,
we enable clients to re-imagine their operating models.
Our growing investments in talent, FinTechs, application
programming interfaces (APIs), application modernization,
innovation labs, and cognitive computing have positioned
us to partner with traditional banks keen to exploit the
DeFi opportunity.
Digital Engineering 5G
As digital is becoming all-pervasive, HCL is helping global Our domain expertise and in-depth understanding of
enterprises re-imagine their businesses for the digital era. technology trends allowed us to make early investments
in key 5G technologies, creating highly differentiated
Our digital engineering offerings portfolio covers all
offerings and solutions in core network, RAN, and
areas of digital transformation through cloud engineering,
management and applications.
digital platforms, digital commerce, digital manufacturing,
5G services and solutions, data engineering and artificial Open-source communities play a key role in 5G OpenStack
intelligence (AI), and silicon platform services. We enable development, and HCL is an active contributing member of
our clients to use digital engineering as a “growth” lever the O-RAN ALLIANCE. To meet the fast-paced technology
instead of a mere driver for efficiency. We continue to invest demands of the 5G ecosystem of the near future, we have
in our 100+ engineering labs, 60+ solution accelerators and also invested significantly in training and lab infrastructure
20+ Centers of Excellence focused on nurturing next- for IP development to provide resources to enhance our
generation digital technologies. partners’ 5G portfolios. We see 5G as a change driver for
business models, bringing about newer opportunities across
industries, and we are committed to accelerating the rollout
of hybrid 5G networks and development of 5G cloud native
network functions while developing differentiated services
and supporting the monetization of 5G for enterprises.
Corporate Overview 33