1. Global Networking
and Offshoring -HCL
ANKUR VERMA – 40707006
ABHINAV PARMAR – 400887001
JASDEEP BEDI – 40707014
AMIT KALANIYA – 40707004

2. What is Global Networking for IT sector ??
An international networking methods that spans all
departments, offices, and subsidiaries of the corporation. Global
networks bring their own set of problems, including those of
different time zones, languages, established standards, and PTT
(Postal Telephone and Telegraph) companies.
What is offshoring with respect to IT sector?
Offshoring is a natural extension of global sourcing. It refers to
the relocation of a business process or entire manufacturing
facility to a foreign country.

3. Why to go for offshoring
MNEs are particularly active in shifting production facilities
or business processes to foreign countries to enhance their
competitive advantages.
Offshoring is especially common in the service
sector, including banking, software code writing, legal
services, and customer-service activities.

4. HCL Enterprise
Evolution And The Journey
 Leading global IT enterprise comprising two companies in India :
o HCL Technologies &
o HCL Infosystems.
 Founded in 1976.
 A global transformational enterprise.
 Its range of offerings includes :
product engineering, custom & package applications, BPO, IT infrastructure
services, IT hardware, systems integration, and distribution of information and
communications technology (ICT) products.
 80,000 professionals of diverse nationalities, who operate from 31
countries.

6. HCL – GLOBAL PRESENCE

7. OFFSHORING BY HCL
HCL Technologies Ltd on June 1, 2002 announced a 100% acquisition of Gulf
Computers Inc, USA.
- HCL Technologies Ltd announced the formation of a strategic technology joint
venture with Jones Apparel Group, Inc. Jones Apparel Group, Inc. a Fortune 500
Company,
-HCL Technologies Ltd announced on August 16, 2002 that it has entered into a joint
venture with m.a. partners - a management consulting firm - to address software
services opportunities in Global Finance Markets, especially in the areas of
Investment Banking, Asset Management and Private Banking.
-HCL Tech, leading global IT services company, on August 19, 2002 announced a
strategic alliance with Sento Corporation, a US based customer contact solutions
Company.

8. The 2005 Offshore Location Attractiveness Index by A.T.
Kearney
• Identifies 9 emerging markets in its list of the 10 most attractive
offshoring suppliers:
India, China, Malaysia, Philippines, Singapore, Thailand, Czech
Republic, Chile, Canada, and Brazil.
• In addition to Canada, the other advanced economy in the top 20
destinations is the U.S. (11th).
• The index emphasizes various criteria:
– Country’s financial structure (compensation costs, infrastructure
costs, tax and regulatory costs);
– Availability and skills of people (cumulative business-process
experience and skills, labor force availability, education and
language, and worker attrition); and
– Nature of the business environment (the country’s political and
economic environment, physical infrastructure, cultural
adaptability, and security of intellectual property).
International Business: Strategy,
8
Management, and the New Realities

10. MOST FUNCTIONS CAN BE OUTSOURCED AND OFFSHORED TODAY
Offshoring
Wealth management, life Institutional, Investment &
Scoping Retail Banking
and general insurance business banking
matrix
IT, Infrastructure  Core banking systems  Life policy systems maintenance and  Loan accounting and equity / Fixed
and administration application development Income trading systems
support (ITO)
 Application development and maintenance
 Remote infrastructure management
 Package implementation and support
 Database administration, data mining and warehousing solutions
 Middleware development and support
Product based  Mortgage and personal loan origination,  Insurance claims administration and  Project finance documentation
transaction processing and servicing collections payment  Support FX, currency ops and derivatives
processing and  eDisputes processing  Policy underwriting settlement
 Credit card processing  Insurance agency management  Trade finance and LCs – advice and
customer contact
 Consumer finance  Fraud detection settlement
centres (BPO)
 Cash management / Fund transfers and  Recoveries  Corporate finance
reconciliations  Trial balance analysis  Risk management
 Brokerage operations  Securities processing
 Commissions administration  Custody operations and trade
 Inbound/outbound contact center
 Customer query handling
 Data entry, indexing and content management
 Customer background verification and finalization
 Loyalty retention (customer care program)
 Customer statement and other periodic reporting
 Regulatory requirements/mandate related support and administration
 Payment processing
Analytics  Mortgage and personal loans  Fund performance analysis  Equity research and M&A analytics
Outsourcing  Portfolio pricing  Reporting and accounting support (valuation and related financial
activities (KPO)  Data warehousing  Actuarial support modeling)
 Data-mining  Product pricing including Dynamic  Credit proposal analysis, preparation and
 Marketing analytics Financial Analysis (DFA) models documentation, portfolio analytics
 Financial model validations  Library services
Source: KPMG, Knowledge Process Outsourcing, February 2008
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11. PROGRESS BY HCL – IN OFFSHORING

12. Offshore Learning Curve
Customer Learning
Phase 4:
Size of Market
Institutionalized
Focus on Value-added
Phase 3:
Market Matures
Richer Practices Emerge
Focus on Quality
Phase 2:
Early Adopters
Best & Worst Practices Emerge
Phase 1:
Focus on Costs
Hype & Fear
Time 12

14. GLOBAL NETWORKING WITH THE HELP OF SAP

16. HCL Technologies, another large Indian outsourcer, reported on Wednesday revenue of
$915 million, up 33.5 percent from the same quarter last year. The company said that
net profit had reached $103 million, up 35 percent from the same quarter last year.

17. SERVICES THEY OFFER FOR GLOBAL MARKET

19. Risks in Global Sourcing
• Less-than-expected cost savings.
• Environmental factors.
• Weak legal environment.
•Inadequate or low-skilled workers
•Risk of creating competitors.
19

20. Strategies for Minimizing Risk
in Global Sourcing
1. The focal firm needs to invest in supplier development and
collaboration.
2. Firms ought to go offshore for the right reasons.
3. Need to get employees on board.
4. Choose countries and suppliers carefully.
5. Choose between a captive operation and a contract with
outside specialists carefully.
International Business: Strategy,
20
Management, and the New Realities

21. Thank you