HCL Technologies Research Report: Detailed Analysis

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HCL Technologies is a next-generation global technology company that helps enterprises reimagine their businesses for the digital age.

Its technology products, services, and engineering are built on four decades of innovation, with a world-renowned management philosophy, a strong culture of invention and risk taking, and a relentless focus on customer relationships.

HCL offer an integrated portfolio of products, solutions, services, and IP through its mode 1-2-3 strategy, built around digital, IoT, cloud, automation, cybersecurity, analytics, infrastructure management, and engineering services, among others.

With a worldwide network of R&D, innovation labs and delivery centers, and 1,50,000 + intrapreneurs working in 46 countries, HCL serves leading enterprises across key industries, including 250 of the fortune 500 and 650 of the global 2000.

Businesses across industries stand at an inflection point today.

Far reaching disruption fueled by technologies like digitalization, analytics, cloud, IoT, and automation means these technologies lie at the core of any enterprise that is trying to reinvent itself.

As the demand for these services increase, HCL technologies is accelerating its evolution into a next generation technology company, driven by a unique business model, Mode 1-2-3, and many unmatched core competencies which bring this mode life.

The company’s DNA of grassroots innovation, its ingrained culture of co-innovation, and its tradition of going far beyond what is expected, to create customer value, puts HCL on a different plane from its competition.

This gives it a distinct advantage in creating value for businesses in the digital and connected world. HCL’s unmatched experience in crore systems engineering and user-interaction design gives us full-stack view of digital technology today.

Its calls leading credentials in managing large and complex technology environments helps HCL appreciate the dynamics of modern technology driven, cloud-centric organizations.

HCL deep expertise in building hardware and integrating software gives us a unique vantage point to maximize IoT value. HCL’s future is shaped by its past.

Having partnered over the past four decades with customers around the globe, and across nearly all industries, through numerous technology refresh cycles, HCL appreciates the tremendous potential of new technologies, while focusing on their real-world application. In fact, HCL was pioneering service oriented architects for its customers through APIs before APIs become table stakes.

HCL engineered cloud orchestration platforms to manage its customers hybrid environments years before multi-cloud became a challenge.

HCL was developing high performance, real-time unstructured database for mission critical applications before Big Data became organizations lifeblood.

HCL has been ahead of the technology curve by investing in Silicon Valley and other partnerships to create a comprehensive partner ecosystem.

HCL has fostered in house innovation programs and created a global network of customer co-innovation labs and delivery centers.

HCL has researched and anticipated the full gamut of technology related challenges its customer will face, as they become increasingly digital, open, and connected.

HCL has built competencies in design thinking, blockchain, cybersecurity, and cloud native.

Not only HCL has made AI powered automation & orchestration core to all its service delivery, but HCL has also packaged it as a platform that all enterprises can use for service assurance and efficient operations. Combining HCL heritage of world class services with battle-tested and innovative products puts HCL in a unique position to better serve its customers.

For example, HCL’s DRY-ICE AI-based service assurance platform simplifies its customers ability to leverage AI to better run their businesses.

MODE 1-2-3 STRATEGY:

Businesses across industries stand at an inflection point today. Far reaching disruption fuelled by technologies like digitalization, analytics, cloud, IoT and automation means these technologies lie at the core of any enterprise that is trying to reinvent itself.

As the demand for these services increase, HCL technologies is accelerating its evolution into a next generation technology services firm through HCL’s Mode 1-2-3 strategy.

HCL’s mode 1-2-3 strategy helps future proof its customers business, by deploying a concurrent, three point spotlight on the existing core of their business, new growth areas as well as the ecosystems of the future.

As detailed below, each of the three modes have distinct outcomes and growth potential.

Mode1: Core Services

Under Mode 1, HCL delivers core services in the areas of applications, infrastructure, DPO and Engineering, R&D , leveraging DRYiCE autonomics and Orchestration to transform clients business and IT landscape making them lean and agile. Mode 1 is all about sustaining a leadership position and gaining market share in existing product or service offerings.

It revolves around strengthening the existing core, be it through forging expansion into new markets by digging further into existing markets. And this necessitates a sharp focus on the most powerful differentiators today.

The emergence of new technologies does not necessarily mean that existing product or services are losing relevance but implies adaptation of and adapting to new technologies to make them even more relevant.

Mode 2: Next Generation Services

Under Mode 2, HCL delivers experience –centric and outcome oriented integrated offerings of digital & analytics, IoT WORKS, Cloud native services and cyber security & GRC services.

Mode 2 is an immediate, high growth opportunity. This is where one needs to set up the game, realizing high acceleration and high growth business opportunities at the inflection points in industry.

This involves close study of the direction in which customer preference are headed, the resultant changes in market landscape and potential impact on the business.

And based on this review, making the strategic investment to move urgently to capitalize on adjacent opportunities.

As these are usually nascent emerging markets, there are unlikely to be any clear leaders, thereby offering quick growth potential by building strong organic and inorganic capabilities in this area.

This is the moment for HCL to pivot, and transition to new business models by developing new offerings in exciting new areas for leadership.

Mode 3: Products & Platforms

HCL continues to explore and enter into innovative IP-based partnerships, targeting specific next-generation opportunities.

Mode 3 includes the external IP partnership with IBM extending now to half a dozen products. HCL also continues to invest in internal IP creation strategy and expansion of capabilities and market for DRYiCE, the next generation autonomics and orchestration products and platforms.

Mode 3 is looking beyond tomorrow and aligning with the trends shaping the future.

The formation of ecosystems is evident across the value chain and across the industries.

Therefore, rather than a ground up approach, Mode 3 entails future proofing business by making the required business model changes and building innovative alliances within an ecosystem of strategic partners.

A successful mode 3 approach connects the dots between existing strengths, the focus points of tomorrow and the shifting canvas in which to operate to stay ahead in the future.

HCL Technologies serves to many industries such as Aerospace & defense, automotive, banking, capital markets, chemical & process Industry, consumer goods, energy and utilities, healthcare, HI-TECH, Industrial manufacturing, Insurance, life science, media publishing & entertainment, media & broadcasting, publishing & education, gaming & entertainment, oil & gas, retail, restaurants, travel, transport, logistic and hospitality, telecom, mineral & natural resources.

To serve these industries HCL has tied up with TRIAKIS CORPORATION, INFOR, PTC, ADOBE, JDA, ROCKWELL AUTOMATION, FINASTRA, DXC, POWEROBJECTS, AVALOQ, LLAMASOFT, MANHATTAN, GUIDEWIRE, DUCKCREEK, VEEVA, KINAXIS, PERKIN ELMER, WORDPRESS VIP, SALESFORCE, INTEL, TELE2, MINE RP, BARSTONE, OSI SOFT.

HCL provides automotive consulting services to seven of the top 10 global automotive companies on solutions to improve experience, reinvent business models, and to enhance their interaction with the new digital customer.

HCL is investing in FinTechs, APIs, application modernization, and cognitive computing to facilitate articulating next-gen retail banking solutions.

HCL and Finastra international banking systems has a strategic alliance in the quest to combine strengths and capabilities.

Leveraging the unique advantages of SOA, they have created a systems solution stack that’s robust, flexible and target focused. Finastra Fusion Banking essence is part of HCL’s combine vision for the future of banking.

Open banking is a foundation shift in the way banks do business, who they do business with and what they sell.

While the term itself has come to be synonymous with an API economy, the nature of change that it brings goes beyond technology developments, product innovation or regulatory edicts.

HCL’s open banking solutions comprise a set of techno-functional frameworks, a well curated FinTech partner ecosystem, an innovation infrastructure and a depth of engineering and design thinking expertise that help a bank create differentiated open banking strategies and implement them.

HCL comprehensive range of foreign exchange services and capital market services helps enterprises ensure market leadership and relevance.

Asset and Wealth Management Solution: With deep industry expertise and Customer Experience focused Engineering DNA, HCL formulates, accelerate & deliver Digital Transformation for Asset and Wealth Managers.

Custody and Security Services: With over 1200 man years of expertise, HCL enables a modernization roadmap, addressing every strategic pillar.

Retail Brokerage App Development & Testing: HCL has deep domain understanding of application management across the trade lifecycle with multi-asset class experience.

Direct Market Access: HCL’s DMA services and DMA solutions are an integral part of our Fintech offerings, incorporating new tools to enhance the execution management systems space.

Financial Accounting & Reporting Software: HCL’s Reporting Factory offers a solution that strengthens core capabilities, converging multiple operational lines into a unified and uber-efficient substratum.

Risk Management Solutions – Basel: HCL’s Market Risk Management solutions help maintain and engineer applications, from liquidity risk to credit scoring models.

MiFID Transaction Reporting Framework: HCL’s SOA-based enterprise architecture is geared to action solutions that act in conformity with MiFID II requirements.

HCL works with seven of the top 15 process manufacturing organizations dealing with chemicals, packaging, pulp & paper and construction.

HCL successfully delivers E2E managed testing services for E-commerce and mobility for a CPG large foods distributor. HCL’s lean consulting services include developing tools and frameworks in LEAN which are required to analyze and enhance a company’s throughput and quality while reducing waste and increasing safety, via the implementation of a LEAN production system.

LEAN 5s – sort, set in order, shine, standardize, and sustain is a major component of HCL’s LEAN consulting services.

As a result of 5s, LEAN strategies and LEAN management systems have helped CPG companies improve on time deliveries by 20-25%, inventory turn performance by 30-35% and productivity by 15-20%. With 5s in LEAN they can also reduce scrap by 22-25% and increase space by 30-33%.

Utilities are transforming the generation portfolio to optimize the supply mix to meet regulatory requirements and to address CAPEX, OPEX, and renewable energy integration challenges, while continuously improving the efficiency of the current fleet and maintaining financial viability. Cyberattacks are becoming more frequent and the impact is highly disruptive for the organization.

In a low carbon economy, HCL provides services and solutions for asset management and real-time plant operations through HCL Engineering and IoT-based solutions.

Solutions & Services:

  • Cybersecurity solutions
  • Engineering and R&D services
  • HAMS – HCL Asset Management Solution
  • IoT-based solutions
  • Real-time Plant Information systems
  • Worker Safety Solution
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The Utility power grid has become massively complex and is being driven to further complexity by public policy, technological advancements, and rising consumer expectations.

These technologies add a layer of digital intelligence to utility operations using sensors, meters, digital controls, and analytic tools to automate, monitor, and control assets across operations from source to supply.

Utility of the future enables a utility to optimize grid performance, prevent outages, restore outages faster, and allow consumers to manage their usage.

HCL offers a unique architectural method, approaches, and tools to help manage the complexity of transmission and distribution challenges and grid modernization.

Solutions and Services:

  • Active Grid Management
  • Image Analytics
  • IoT based Remote Asset Management
  • Worker Safety Solution

Utilities which focus on customer service excellence improve customer satisfaction and gain their trust, thus expanding marketing share.

These utilities recognize that effective, integrated customer, and channel management solutions that meet and interact with customers where they want to be met are critical to improving the digital customer experience and enabling the transition to richer customer interactions.

HCL has developed solutions and services to provide utilities with a true multichannel customer engagement platform.

HCL utilities customer solutions deliver transformed customer experience for millions of customers today.

Solutions & Services:

  • Customer Information and Billing Modernization
  • Digital Customer Experience
  • Intelligent Energy Management
  • Predictive Customer Interaction
  • Unified Office Automation

Utilities industry sector has been slow to change because of a range of barriers, including its unique regulatory and business model dynamics. From here on, however, change is likely to accelerate.

Until recent times, many utilities are deciding whether and how to advance on digital initiatives within their organization.

True digital innovation requires going beyond isolated digital projects to reinventing the organization in its entirety.

The critical tasks for utilities today are understanding their point of departure and setting ambitious targets.
HCL’s Digital & Analytics services bring its entire gamut of expertise from consulting to implementation to ensure that digital journeys can enable an end-to-end IT transformation.

Solutions & Services:

  • Business Analytics Services
  • Data Analytics
  • Digital Applications Services
  • Digital Consulting
  • Digital IT Operations

HCL is supporting its life insurance clients in their transformation journey to become a Leading Next gen Insurer, through: 

  • Unique Business-Aligned IT (BAIT) model to provide best-fit life insurance solutions while considering the associated impacts
  • Collaborative approach that improves clients’ performance while significantly containing costs
  • Centers of Excellence (CoE) to support in building, creating differentiated assets for its partner’s product – accelerating time-to-market
  • Invest in developing IPs and market leading innovative insurance solutions.
  • Disrupt to remove the inefficiency in the technology/IT landscape to make it perform better.
  • Enable and commit on its relationship through its core DNA: ‘Ideapreneurship’ culture that enables every employee working for its client to focus on value creation.

HCL’s insurance services have garnered industry-wide recognition with over 100+ clients successfully served in 31 countries. HCL has also been awarded “Excellence in Insurance Education” by LOMA for the 8th time. Its insurance software solutions have received Gartner’s highest rating of “Mature” in delivering ITO services to both Life Insurance and P&C Insurance customers.

For last 10 years, HCL has been a partner of choice for leading life sciences & healthcare companies.

Company’s clientele includes 10 of the 20 pharmaceutical companies and seven leading medical devices firms.

HCL believes that convergence of the ecosystem is the future and is consequently working to create unique customer experiences. This involves innovation orchestration of holistic and end-to-end offerings, including IoT, digital, analytics, applications and Cloud services.

HCL’s Platforms and Services for life science business:

Advisory Services: HCL’s Life Science Business Consulting group leverages its industry domain experts and business process consultants to provide advisory services to Pharma, Biotechnology, and Medical Devices customers worldwide. 

Digital Patient Care Platform: HCL’s Digital Patient Care Platform provides a pre-built and configurable foundation to create a connected patient ecosystem, driving sustained relationship and reducing time and cost to launch patient care, support and engagement programs across countries, products and indications.

Quality Platform: A Complete quality management solution to help improve Overall Quality management efficiencies of Next-generation Life Sciences enterprises and enable inspection readiness at lower cost.

Integrated Clinical Platform: A platform that leverages best-of-breed products to build an orchestrated bouquet of offerings required for efficient management of clinical trials.

HCL has designed its digitalization services to enable technology-led transformation of business processes. HCL services for digital media firms have the ability to bolster customer relationships and build future-ready infrastructure that allows a single view of data across the organization.

HCL is one-stop partner for its customers when it comes to digitalization. HCL’s ‘Collaborative Digital Enterprise’ model spans every facet of our customers’ requirements, from supply chain optimization to end-to-end cloud-based models.

HCL’s ALT ASMTM framework uses a “proactive obsolescence” approach to help clients minimize operational costs while maximizing revenue. HCL’s retail connect is a mobility solution that addresses both strategic and operational challenges.

An integrated suite of mobile apps, it enables faster implementation of mobile apps, and is conducive to operational efficiency.

HCL’s track and trace solution offers complete visibility into the food supply chain. By enabling tracking and inventory management, the solution can inspect problems and ensure the compliance of food safety regulations.

HCL Microsoft Business Unit: HCL Microsoft Business Unit has been exclusively designed to accelerate innovation for its customers and create modern, intuitive enterprises with an industry leading digital transformation agenda.

HCL Microsoft Business Unit is focused on Microsoft technologies to extend the offerings of Business Applications, Microsoft Dynamics 365, Microsoft Azure, IoT, AI/Machine Learning and help employees leverage the modern workplace more effectively with Microsoft 365 and Windows 10.

The HCL Microsoft Business Unit would help in creating an intellectual property by extending Microsoft platform for client-specific scenarios and support our customers in the financial services, healthcare, and life sciences, manufacturing, retail, and travel industries.

This business unit combines HCL’s specialized services and global reach with Microsoft’s powerful cloud and business technologies, creating a unique offering for clients.

HCL Microsoft Business Unit brings forward a trusted, legacy partnership of 30+ years with the singular aim of making modernization a reality, by creating technology of the future- today.

They Offer:

Modern Workplace

  • Business and Persona Aligned IT support
  • Real time experience Monitoring
  • End-to-end MS Teams Solutions
  • Smart workforce Platform
  • Zero Distance Collaboration Platform
  • Wisdom Modernization

Data and AI:

  • Big Data on Azure
  • Remote Monitoring Solutions- Real-time Manufacturing Insights (RMI)
  • Remote Monitoring Solutions- Real-time In store Insights (RII)
  • Legacy Device Management
  • Data Visualization
  • Analytics Pathways
  • Cognitive Services

Application and Infrastructure:

  • Data Center/Cloud Migration to Azure
  • SAP On Azure solution
  • Azure applications management and modernization
  • Azure VMware solution
  • Windows Virtual Desktop solution
  • ElasticOps for Azure Cloud Operations management
  • ISV Modernization

Business Applications:

  • Intelligent Sales and Customer Care
  • Field Services
  • Modern Finance
  • Power Platform
  • Enterprise Support

HCL celebrates 30 years of its presence in the United States of America. HCL celebrated 10 years of presence in the NORDICS. In the USA alone HCL have approximately 17,000 employees with around 70% localization.

HCL established a new deliver center in Adelaide in Australia.

The employee strength in HCL’s new vista locations of Madurai, Lucknow, Nagpur, Vijayawada and Coimbatore is up nearly 60% from last year. HCL employee strength crossed into 5 digits and is currently at 10,500+ employees.

Worldwide IT spending is projected to total US$ 3.9 trillion by end of 2020, an increase of 3.4% from 2019 and is expected to cross into US$ 4 trillion territory by next year. Software will be the fastest growing major market, reaching double digit growth at 10.5%.

Worldwide IT Spending Forecast (Billions of U.S. Dollars)

 

2019 Spending

2019 Growth (%)

2020 Spending

2020 growth (%)

2021 Spending

2021 Growth (%)

Data Center Systems

205

-2.7

208

1.9

212

1.5

Enterprise Software

456

8.5

503

10.5

556

10.5

Devices

682

-4.3

688

0.8

685

-0.3

IT Services

1,030

3.6

1,081

5

1,140

5.5

Communi-cation Services

1,364

-1.1

1,384

1.5

1,413

2.1

Overall IT

3,737

0.5

3,865

3.4

4,007

3.7

Growth in IT spending for cloud-based offerings will be faster than growth in traditional IT offerings through 2022.

Organizations with a high percentage of IT spending dedicated to cloud adoption is indicative of where the next generation, disruptive business models will emerge.

The global public Cloud market size is expected to reach US$ 488.5 billion by 2026, rising at a market growth of 16% CAGR.

Coronavirus has forced the majority of IT firms to follow the home model of operation.

IT and ITES have made it easier for mobile staff to implement business productivity technologies and services. As a result, there is a growing need for cloud connectivity and collaboration tools across the globe.

Information technology (IT) worldwide spending forecast from 2005 to 2020(in billion U.S. dollars)

Year

Spending

2005

2,648

2006

2,856

2007

3,177

2008

3,393

2009

3,228

2010

3,402

2011

3,573

2012

3,618

2013

3,677

2014

3,564

2015

3,396

2016

3,396

2017

3,539

2018

3,716

2019

3,757

2020

3,456

The global sourcing market in India continues to grow at a higher pace compared to the IT-BPM industry.

India is the leading sourcing destination across the world, accounting for approximately 55% market share of the US$ 185-190 billion global service sourcing business.

Indian IT and ITeS companies have setup over 1,000 global delivery centers in about 80 countries across the world. India has become the digital capabilities hub of the world with around 75% of global digital talent present in the country.

IT & BPM industry’s revenue was estimated at around US$ 191 billion in FY20, growing at 7.7 per cent y-o-y. It is estimated to reach US$ 350 billion by 2025.

Moreover, revenue from the digital segment is expected to form 38 per cent of the total industry revenue by 2025.

Digital economy is estimated to reach Rs 69,89,000 crore (US$ 1 trillion) by 2025. The domestic revenue of the IT industry was estimated at US$ 44 billion and export revenue was estimated at US$ 147 billion in FY20.There are 417 approved SEZs across India where 274 are of IT & ITeS.

Government of India released national policy on software products to develop India as a software production nation.

The government of India has identified IT as one of the 12 champion service sectors for which an action plan is being developed. Also, the government has set up a Rs 5,000 crore fund for realizing the potential of these champion service sectors.

NITI Aayog is going to set up a national level program that will enable efforts in AI and will help leveraging AI technology for development works in India. Government has announced plans to launch a national program on AI and setting up of a National AI portal.

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Indian IT Industry (US$ Billion)

Year

Domestic

Export

FY16

35

108

FY17

37

117

FY18

41

126

FY19

41

136

FY20E

44

147

Sector Composition:

Sector wise break up of Indian IT market (US$ Billion)

Sector

US$ billion

IT services

86

Business Process Management

32

Software Products and Engineering Services

33

Hardware

15

Sector wise break up of Export Revenue FY19

Sectors

Percentage

IT Services

54

BPM

23

E R&D and Software Products

23

Growth in Export Revenue (US$ Billion)

Sectors

FY16

FY17

FY18

FY19

IT

61

66

70

74

BPM

24.4

26

28

31

Software Products & Engineering Services

22

25

28

31

India is the world’s largest sourcing destination with largest qualified talent pool of technical graduates in the world. India has the lowest cost advantage, being 5-6 times inexpensive than the US.

India is the second fastest digitizing economy among 17 leading economies in the world. India’s Cloud market is expected to grow three fold to Rs 49,621 crore (US$ 7.1 billion) by 2022, driven by the demand for Big Data, Data Analytics, Artificial Intelligence (AI) and Internet Of Things (IoT). India is emerging as the hub for digital skills.

The country spends US$ 1.6 billion annually on training workforce in the sector. The industry is the largest employer within the private sector, employing 3.9 million people.

India is transforming into a digital economy with over 450 million plus internet subscribers, only second to China. The national optical fiber network aims to connect all 2,50,000 gram panchayats in the country with high speed broadband.

Up to 100% FDI is allowed in data processing, software development and computer consultancy services, software supply services, business and management consulting services, market research services, technical testing and analysis services, under automatic route.

The global artificial intelligent (AI) market size is expected to reach US$ 733.7 billion by 2027 at a CAGR of 42.2%. AI denotes the concept and development of computing systems capable of performing tasks customarily requiring human assistance, such as decision making, speech recognition, visual perception and language translations.

AI uses layers of algorithms to understand human speech, visually recognize objects and process information. These algorithms are used for data processing, calculation and automated reasoning.

The COVID-19 pandemic has emerged as an opportunity for AI-enabled computer systems to fight against the epidemic as several tech companies are working on prevent, mitigate, and contain the virus.

AI powered computer platforms or solutions are being used to fight against COVID-19 in numerous applications such as early alerts, tracking and prediction, data dashboards, diagnoses and prognosis, treatments and cures, and maintaining social control.

AI is becoming vital to big data as the technology allows the extraction of high level and complex abstractions through a hierarchical learning process. The need for mining and extraction of significant patterns from high volume information is driving the growth of AI in big data analytics.

AI spend in India has increased at 109.6% during 2018 to reach US$ 665 million. Spend on AI is expected to record a CAGR of 39%, increasing from US$ 1,176.6 million in 2019 to reach US$ 11,781.9 million by 2025. The current areas of focus for AI applications in India are majorly focused in 3 areas:

1) Precision Agriculture: The government has initiated a proof of concept pilot in 15 districts in India to use AI based real time advisory based on satellite imagery, weather data, etc to increase farm yields where the farm production levels are low.

2) Healthcare: pathologists and radiologists are very few in number India relative to the overall population and these are applications which can be augmented through image recognition AI. Niti Aayog is working on early diagnosis and detection of diabetic retinopathy and cardiac risk based on the AI model. Such initiatives would in the long run help patients on proactive medication in early stages rather than reactive healthcare in advanced stages, bringing down healthcare costs and better chances of recovery.

3) Indian Languages project: There is a long-term project to build a complete natural language processing platform for Indian languages. This would aid in the development of several applications, like conversational general and career counseling through chatbots and assistants, conversing in 22 Indian languages.

With the government’s growing interest around AI application In India, there has been a significant growth in interest levels around AI across all industry sectors in India.

AI attention is smaller in India as compared to USA and China.

This shows there will be great opportunities for Indian IT companies to develop AI based solutions for India. Leveraging BPO and back office expertise, India’s IT services firms could potentially develop the world’s best office automation and BPO AI applications.

This would allow India to develop a higher margin product industry, in addition to their wide low-cost services sector. Data cleaning and data tagging is huge opportunity for near term business.

The BPO industry in India may find a opportunity in Data cleaning and tagging in massive datasets, which will eventually be used to train and error-correct AI. Cheap skilled IT labor can potentially enable this opportunity.

Five years ahead in the future, in some cases, Indian IT services companies will automate the work themselves. HCL technologies one of the leading Indian IT services companies has become the third best in India, beating Wipro.

AI and Machine Learning in Financial Services: Accelerated adoption in the Post COVID new-normal

For financial institutions, the post-COVID-19 new normal marks the end of experimentation with fintech and digital technologies and the beginning of a large-scale transformation, driven by the adoption of new technologies in partnership with technology firms.

While previously, banks were convinced that they were advancing in the race to undergo digital transformation in financial services, little were they realizing that these efforts had minimal impact on the strategic direction, customer service and hence, the bottom-line results in most cases.

The solutions weren’t a quantum leap towards delivering next-generation financial services.

At best, they fit into the existing infrastructure as a workable solution. More often than not, they failed to make a noticeable difference. With COVID-19, everything has changed.

The luxury of experimenting with technology has disappeared overnight.

Banks are having to accelerate their digital innovations in every aspect of their business, from sales and marketing to customer service and operations.

They are having to reinvent their business models for the post-COVID times. The importance of dramatically shrinking the time, between the generation of a business idea and the delivery of business value, has never been greater.

While the need for transformation has been accentuated, financial institutions are also under immense pressure to continue all critical financial services operations as normal.

The need to focus on stability and resilience, while rapidly transforming themselves, has also forced banks and financial institutions to look for solutions in newer technologies that can drive innovation across their business value chain.

The need to reduce manual intervention in operations and hence, improve safety and soundness across the enterprise is driving the adoption of AI and machine learning driven solutions.

Banks are hence transforming into digitally driven enterprises, akin to big tech firms and are building capabilities that enable a relentless focus on the customers.

Some areas have seen the early adoption of these technologies, prior to the COVID-19 pandemic, and are now seeing an accelerated deployment of these technologies.

e-KYC with Intelligent Automation and RPA: Intelligent automation and robotic process automation help optimize functions, enhance efficiency, and improve the overall speed and accuracy of the core financial processes, leading to cost-savings.

IA and RPA are being increasingly used to automate the crucial yet repetitive, mundane, and tedious processes that require substantially higher manpower and human work hours.

Such processes may include document handling for e-KYC, loan disbursement, loan repayment and regulatory reporting.

Exacto by HCL Tech is a platform enabling a number of such use cases; it runs on a NLP-based engine (Natural Language Processing), which manages, interprets, and extracts unstructured data, such as text information, images, scanned documents (handwritten as well as electronic), faxes, web content, and natural language input to enable improved performance, with a notable reduction in the average handling time leading to superior customer experience.

While intelligent automation has been around for quite a while, tools like Exacto take it a step further, by enabling the system to not only handle but also identify any missing, unseen, and ill-formed data, resulting in near-perfect accuracy and higher reliability.

The intelligent automation solutions reduce the AHT (average handle time) and empower financial organizations to be able to process significantly more inputs, while managing dynamic problems.

Such solutions are proving to be beneficial in streamlining processes in financial services that are costly, human intensive and error-prone, and improving customer experience – thereby providing firms with significant competitive advantage.

Loan Portfolio Analytics: The estimation of creditworthiness is largely based on how likely an individual or business might repay a loan. The ability to determine the likelihood of default underpins the risk management processes at all the lending businesses.

Even with impeccable data, this process of assessment is filled with risks. It is not uncommon to find the data deficient. People and organizations in some cases will (and do) lie. To combat these limitations, several organizations are using AI, to determine the creditworthiness of individuals and for risk assessment.

Credit bureaus utilize AI, machine learning and the power of advanced data and analytical tools to analyze alternate sources, to evaluate risk and gain customer insight.

While in the past, money lenders used a limited set of data such as the salary earned by an individual and their credit scores; organizations have now begun to consider his/her entire digital financial footprint to determine the likelihood of default.

In addition to traditional data sets, this alternative data and the analysis of it tends to be especially valuable in deciding the creditworthiness of individuals, without the conventional records of loan or credit history.

Technologies such as artificial intelligence and applied machine learning and financial services are proving to be exceptionally useful in this process.

Needless to say, in this post-COVID-19 world, the way businesses and clients interact with each other has irreversibly changed.

We have seen banks and other financial institutions leveraging technologies like AI, Machine Learning and Intelligent Automation, to improve back office operations for cost reduction while at the same time, deploying technology to significantly improve customer engagement.

A digital transformation in banking and financial services that was in its infancy prior to COVID-19, has picked up steam during the pandemic and will only accelerate exponentially in the post-COVID world, demonstrating the kind of benefits and productivity improvements industries have not seen before.  

Application of AI Techniques in NextGen Laboratories

As the world continues to grapple with the COVID-19 crisis, pharmaceutical research laboratories have become the center of attention. Companies, including startups, are leaving no stones unturned to harness advanced technologies to arrest the crisis.

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With no dearth of data, the ability to integrate data from multiple sources is critical.

Laboratories need the tools that can make the best use of data to assist in decision-making and informed and uninformed searches on data repositories.

For this, artificial intelligence (AI), which is the foundation for building any intelligent system that uses cognitive computing, is the key. It recognizes patterns and presents trends that can help us make decisions in real time.

Synergy between AI and Lab Informatics:

Laboratory information systems have to move beyond traditional data storage given the limitations of relational database management systems (RDBMSs). With exponentially increasing data volumes, complex search or retrieval queries using Structured Query Language (SQL) are getting cumbersome.

With lockdown enforced all around the globe and people restricted to their homes, a solution has to be in place for continuing routine business operations remotely.

To address such a situation there will be a rise in demand for voice-controlled tasks, image processing for identification of sample tags, and character identification in medical orders, making suggestions based on the history of a particular patient, and the like.

Most of the laboratories store precise data but need to retrieve information based on imprecise criteria. All such new requirements can be solved by leveraging the many applications of AI.

Real-time, Data-Driven Decision Making

Recent developments in AI and machine learning (ML) have shown a ray of hope to scientists. They can now use digital analytics and tools to scan through huge volumes of multi-sourced data and select the appropriate one.

Solutions leveraging these technologies accumulate theoretical data from experimental workflows and render it as usable information when required by scientists.

As a result, because of digital analytics, scientists are no longer confined only to their labs and can connect and share tools with their peers both within and outside the premises.

AI in Digital Pathology

Digital pathology is a new way for scientists and physicians to interact with pathological data. Clinical laboratories are now digitizing by converting glass slides to e-slides and digital slides.

This means that samples in the form of glass slides are now converted into pixels in high throughput.

As a result, laboratories now have access to a significantly larger pool of data attached to metadata, such as a pathology report that provides information about the diagnosis and patient outcome.

These images have been used to begin to train algorithms. Alongside, two important things occurred in the field of computer science:

  • Immense improvement in computing capabilities as well as the proliferation of cloud
  • A shift from ML to newer deep learning technologies within the AI umbrella

Unlike the traditional applications of AI and ML, which require an expert pathologist to annotate images and train the algorithm, larger datasets allow laboratories to use convolutional neural networks to distinguish the important features required for an accurate diagnosis.

Auto-diagnosis is Now a Possibility

Digital pathology uses computerized and auto diagnosis. The virtual microscopy generates multiple images of the same tissue for parallel analysis.

With a multitude of annotated images from different tissue samples, AI can recognize the regular and abnormal features in tissues and identify a pattern that may point to a type of disease.

This is a huge stride toward auto diagnosis personalized medication as we can integrate radiology with genomics, proteomics, and demographics for more accurate prognoses.

Scientists and bioengineers have already started working on a similar area where they have merged AI with standard microscopy and infrared light for assembling digital biopsies for the identification of vital molecular characteristics of cancer samples without using dyes and labels.

Standard biopsies reveal cellular details using staining methods, which take a relatively long time.

Besides, any diagnosis by manually studying the shape and size of the cells can lead to errors as the observation may vary from pathologist to pathologist. ML-enabled computer programs combine white light and infrared signals that bounce off the biopsy sample when viewed under a virtual microscope.

AI can gather details that cannot be seen by human eyes. Going Beyond Boundaries for Early Detection.

Due to ethical reasons and accessibility limitations, the study of human placenta in situ was never possible. With the advancement in technology, scientists are now bringing engineering technologies like AI, IoT, and ML into microbiology to develop a unique 3D model for studying complicated processes.

The model is powered by a microfluidic sensing chip, which helps physicians and scientists to study placenta-related medical conditions and detect anomalies before they mature.

Like this way AI will be used in each and every sector to reduce the work load. HCL technologies has announced the general availability (GA) of HCL Domino Volt, a new low code capability built on the HCL Domino platform.

This release continues HCL’s commitment to transform over 10 million enterprise-grade apps powering business for more than 15,000 customers.

Critical manufacturing, a worldwide provider of MES for industry 4.0, has partnered with HCL technologies to provide pre-post sales consulting, development, and implementation support.

The partnership involves Critical Manufacturing for hi-tech, semiconductor, and medical device manufacturing industries.

For manufacturers to fully leverage the potential of industry 4.0, MES becomes a critical component for consideration.

Today, an increasing level of intelligence is being built into MES, even as IoT and AI play pivotal roles in shaping the manufacturing industry. HCL’s partnership with Critical Manufacturing brings the much needed amalgamation of industry 4.0 with MES to achieve the end to end digitalization between various plant floor systems, while also providing a holistic environment or real time information exchange and efficient decisions.

HCL have the ability to help customers rethink users experience design capabilities and company have process consulting capabilities. Company have morphed these two together to call it the digital consulting practice and build a platform for companies.

The process will be delivered through modern apps and data becomes new oil. HCL is also making everything data centric.

Enterprises are using a lot of devices such as POS and scanners, HCL brought those on cloud. This HCL business had grown at 30% CAGR for the last three years.

AI is infused in all data today. HCL have a data science team that looks at the outcome. HCL use AWS and MATLAB to heavy lift data and leverage languages like python.

HCL creates a common data lake and use it for different departments of organizations. HCL brings platforms and applications together with user experience.

HCL technologies, a leading global technology has been recognized by information services group, a leading global technology research and advisory firm, in the ISG provider Lens digital business transformation global report. HCL has been rated for high performance in six categories that will help enterprises succeed in their quest for digital transformation.

ISG commended HCL for its strong, deep in-house knowledge and capabilities in all areas of digital transformation its access to a wide range of technologies, and its impressive ecosystem of partners, co-invested partners, and acquired companies.

ISG named HCL as leader in enabling the customer journey, Digital transformational platforms (PaaS), digital product creation & customization, digital transformation services (SaaS), Digital continuous delivery, and digital enterprise operations.

HCL technologies have been selected by Volvo cars as one of the suppliers for IT services and its digital transformation programme.

Even as some peers struggle, HCL continues to grow at a scorching pace. In the last 14 quarters, HCL’s revenue has grown from US$ 6.4 billion to US$ 9.7 billion, a 12% CAGR.

Over the same 14 quarters, its revenue per employee grew 14% CAGR to US$ 68,000 –the highest in the industry. HCL technologies announced the release of Unica V12.1.

Unica takes precision marketing@scale to the next level by the largest organizations with the most complex data infrastructures.

V12.1 is the culmination of more than two years of research, development and investment in the Unica platform to power the next generation of customer journeys and goal-based marketing.

HCL technologies commenced its operations in Sri Lanka. Marking its presence in the region, HCL plans to create over 1,500 new local employment opportunities for both freshers and experienced professionals, within first eighteen months of kick –starting its operations from its office in Colombo.

HCL technologies and Google cloud announced the expansion of their strategic partnership to bring HCL’s software offerings, starting with HCL commerce, to Google cloud.

Google cloud will be the preferred cloud platform for HCL commerce, providing global, secure and elastic infrastructure to power businesses e-commerce strategies.

Under this partnership, HCL also intends to leverage Anthos to enable multi-cloud and hybrid cloud deployments of HCL commerce.

Temenos, the banking software company and HCL technologies have signed an exclusive strategic agreement for non-financial services enterprises.

HCL has been granted a license to develop, market and support Temenos multi-experience development platform for non-financial services enterprises.

HCL technologies acquired Cisco’s optimizing network (SON) technology.

This acquisition, which comprises of products and services built on Cisco’s SON technology, will help HCL meet the growing needs of its customers in the telecommunications industry, which includes tier one communications service providers globally, by adding the power of Cisco’s SON’s multivendor multi technology and application support to its clients.

HCL technologies will open a global delivery center (GDC) in Hartford to offer digital transformation services to clients in the smart manufacturing, insurance, aerospace, and create local jobs with the help of strong ecosystem regionally and at the state level.

HCL technologies announced a new contract with New Zealand dairy co-operative Fonterra to modernize and manage the entire technology infrastructure for Fonterra.

Without technologies world cannot move. New generations will be born and new technologies will be created. In almost all our day to day activities we use technologies.

So, IT sector will never be wiped out.

On consolidated basis, company’s income from operations grew to Rs 70,676 crore in March 2020 from Rs 12,136.29 crore in March 2010. Company’s net profit grew to Rs 11,057 crore in March 2020 from Rs 1,259 crore in March 2010.

HCL technologies posted 31.4% rise in consolidated net profit at Rs 2,925 crore for the June 2020 quarter. Company has registered a net profit of Rs 2,220 crore in the April-June 2019 quarter.

Its revenue grew 8.6% to Rs 17,841 crore in June quarter, from Rs 16,425 crore in the corresponding quarter last year.

From all this, I consider a buy call on HCL TECHNOLOGIES for my own portfolio.

Cover Image: Democratic Janta

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Pritesh Patel
The founder of Patel Securities, Pritesh loves to talk about Stocks, Businesses, and Sectors.
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