Strong growth at HCL reflects European IT spend

HCL said its European sales have increased as a result of businesses focusing on efficiency while attempting to reduce the number of suppliers they use for specific service lines

HCL said its European sales have increased as a result of businesses focusing on efficiency while attempting to reduce the number of suppliers they use for specific service lines.

Despite the Euro crisis, the Indian service provider’s European sales increased 18.8%, compared with the same period last year, which was 1.7% higher than the growth of its global sales.

Rajeev Sawhney, head of Europe at HCL, said the supplier is winning more business within existing customers as they attempt to reduce costs.

“Due to the macro economic climate being difficult, the IT budgets are tighter and clients are expecting more efficiency and return on investment,” he said. “A significant area of spending is on running the business rather than building the business.” 

Sawhney said the double-digit growth in its infrastructure services business is evidence of this, with the healthcare and manufacturing sectors good indicators of this trend. 

Looking forward, he said that once freezes on discretionary spending are lifted, HCL’s transformational services should pick up.

Sawhney also said that HCL has seen customers focus on specific suppliers for certain business lines, rather than have multiple competitors for the business, which has helped HCL win more business within existing customers. 

“Clients are still multi-sourcing, but less so for certain service lines,” he said.

HCL, which is committed to increasing its European business, now has over 4,500 staff on the continent.

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