Want news about HCL Technologies to land in your mailbox?

HCL Tech to restore dividend policy in 6-7 quarters

Vineet Nayar’s colleagues call him one of the most honest, candid, and transparent person. He is also a master in disruptive thinking.
Vineet Nayar, CEO, HCL Technologies, said most companies will come back to quarter-on-quarter growth in two quarters. He stated that HCL is considering restoring dividends in the next 6-7 quarters.
|
RELATED NEWS
|
Here is a verbatim transcript of the exclusive interview with Vineet Nayar on CNBC-TV18. Also see the accompanying video.
Q: The sense that one gets when one talks to CEO’s, especially with regards to the
A: I was at a
If you turn that into the IT services sector, I will look at the data and non data. We started with USD 8 billion of deals of outsourcing which Data Monitor reported for IT services in July-September of last year. That USD 8 billon come down to USD 4 billion and then down to USD 2 billion. That is the total reduction in outsourcing deals as per Data Monitor. If I combine the S&P upswing which is happening and if I combine the data, it is at the lowest at USD 2 billion which is not sustainable. The deals would start coming back, but the question is when. If I believe the S&P data, then that is going to be earlier. But if I believe the hands which were raised, I think that is going to be January onwards.
Q: What about HCL Tech? I would like to link the noises coming out from the
A: When we started the transformation journey in 2005 in HCL we said there are a couple of things that the current business model will not sustain the model of high quality, low cost
In my mind, the business model is definitely collapsing, no value, only because the global majors have as much as large a presence as there is for anyone in India, so that’s a first model, the business model of global majors is also collapsing because we had these long term contracts which I call trust me contracts, zero transparency, very low flexibility, the customers want discounts in recession, the customers in recession wants discounts it wanted more cooperation and more value and they didn’t get it, so you have an environment today that the customer is hugely dissatisfied with their existing vendors whoever they may be, one reason or other and that’s a very interesting market space. So, I am less worried about Goldman Sach’s results or someone else’s results for right or wrong reasons. It offers unique opportunities for hungry management and hungry companies.
Q: There has been a lot of talk about this vendor switching or consolidation but we really haven’t seen it play out as the Indian CEO’s are talking about it. What is the sense you are getting of how soon are we actually going to see this?
A: One of the unique things which we have done is in the last two years, we have announced our deals with name and the questions we need to ask with reference to Dr Pepper, Reader’s Digest, AMD, Viacom who were they doing business with and why is that they are suddenly doing business with HCL. So, here is your answer for vendor consolidation.
Continued on next page ...
Business
Business News | Economy | Earnings | BSE NSE Notices
General News
Current Affairs | Politics | World News | Sports | Entertainment
Corporate Strategy
Management | Advertising | Marketing | Legal
Personal Finance
Tax | Insurance | Credit Cards | Loans | Property | Retirement | Investment Help | Financial Planning | Fixed Income
Markets
Local Market | Global Market | Market Cues | Analysis | Expert & FII outlook | Brokerage Recomendation
Stocks
Stocks in News | Expert Advice | ADRs & GDRs | IPO
Mutual Funds
News | Advice | MF Analysis | Fund Managers Views
Lifestyle
Travel | Wellness | Technology | Auto| Books
Anand Sudarshan
Managing Director and Chief Executive Officer
Manipal Education
Why is education sector attracting money, experts find out
Malvinder Singh
Chairman
Fortis Healthcare
Aim to keep 1:1 debt equity ratio post Parkway deal: Fortis
Dhruv Sawhney
CMD
Triveni Engineering & Industries
Triveni announces scheme of demerger of steam turbine biz
Hitesh Oberoi
COO
InfoEdge
Job mkt improving; see jump in hiring ahead: Info Edge
-
Most Read
-
Most Viewed
- 8 stocks that were buzzing last week, how to trade them now

- NMDC gets poor response; Ex-Disinvestment Secy defends govt

- Check out: Two top picks from Antique Stock Broking

- IL&FS Trans IPO overbid; should you invest?
- Why is education sector attracting money, experts find out
- KV Kamath relives his triumph,'08 crisis; bets big on India

- The big bull market has run its course, says Bill Bonner

- Stocks/sectors to park your funds ahead of the next upmove

- Pradip Overseas IPO subscribed; should you invest?
- Recent rights issue to fund Fortis' Parkway buy
- No follow-on offers in IOC, ONGC for now
Source: Business Line
- Fujitsu: the strange affair of Kuniaki Nozoe
Source: ft.com
- Indian harvest hopes sink sugar prices
Source: ft.com
- Tentative tone takes hold as investors seek direction
Source: ft.com


















