January 8th
Jaipur to Delhi
Today, we traveled from Jaipur to Delhi. On the way, we stopped for tea, and I tried my first samosa! Plane buddy was right…they are delicious.
Apart from this newfound treat, I was amazed at the dichotomy that exists between the quality of life in Jaipur and Delhi. Here, there was very little garbage on the streets, people lived in homes rather than slums, there were sidewalks, and I saw children coming home from school. I saw more people coming and going from work, and less people begging off the streets.
Traffic was especially bad, and our group had to quickly check into the hotel and get dressed in order to make it to HCL on time. Standard check in procedure at hotels in India requires that they make copies of each guest's visa and passport before issuing room keys. But in the IT capital of the world, these copies were made on a machine that was about to croak. This is just one of the many things that demonstrates the dichotomy I was talking about earlier...that one of the largest players on the global IT landscape is still lagging behind internally.
HCL Visit
The HR department gave an interesting presentation about HCL's position in the Business Process Outsourcing business. Below are some of my key take-aways from the presentation:
- Coding used to be 50% of IT exports to India. Now, it’s data centers, networks, and infrastructure management that are being exported. As these new processes are being exported, there is a greater standardization. Custom application design has been decreasing yet it represents 34% of HCL’s revenues.
- The United States and United Kingdom represent 80% of IT exports. Indian countries are now focusing on attracting business from Nordic countries. These Nordic countries represent an under-penetrated area for IT outsourcing contracts. Others include Japan, healthcare, government contracts, and infrastructure services.
- IT and engineering services are projected to grow 5-6 times the current market size; global sourcing and BPO services will grow 7-8 times.
- Not only is there is a trend toward smaller deal sizes (now typically around $25-50 million), but also there is an increased demand for global delivery. A few years ago, only about 20% of HCL’s employees worked onsite with the client. Today, this has increased to 30%, and is projected to rise further.
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