We believe the cloud is the largest spending area for all of our customers and all of our businesses, whether it’s a digital foundation, digital business, digital engineering, as well as products and platform, will benefit from increasing cloud opportunities. So I think this is the most important business goal to really take advantage of all the opportunities around the cloud.
We have an offer called intelligent cloud which provides independent advice on the cloud transformation journey for our clients, where they can choose from a variety of hyperscalers and technology solutions. A cornerstone of our smart cloud strategy are ecosystem partnerships. We have the strongest ecosystem partnerships with AWS, Microsoft Azure, and Google Cloud, as well as hybrid cloud practice with IBM.
How does HCL stand when it comes to exploiting the opportunities of large tech companies?
We have the largest technology and services vertically, contributing 18% of revenue. This is probably the highest among our peer group. So it’s about serving some of the big tech companies.
He recently said the company isn’t looking at large acquisitions and an organic growth strategy, but has announced smaller acquisitions over the past week. What is driving this?
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Our thought flow is to acquire more vertical and industry specific capabilities. As in the banking sector, wealth management is a very important area and has multiple strong products, such as Avalock, in different geographic areas. Confinale (acquired for 53 million Swiss francs) is a company with good advisory skills in asset management. And we already have strong implementation capability. So we acquired the front piece.
Has growing geopolitical uncertainty changed the kind of solutions customers seek globally? Are they looking for more decoupled solutions?
This is nothing new, many large companies have always talked about modular platforms. So composable platforms give you the flexibility to make these changes to the demarcation of segregations as per business requirements and create new applications, create new controls, create more security locations, so this has been a good trend for many companies.
And this demand for modular solutions has turned into revenue?
I think last year 50% of the incremental revenue we got came from a digital applications company focused on building composable applications, digital platforms, analytics, data, among others in (this space).