“A STUDY ON

A STUDY ON UNDERSTANDING THE CROSS CULTURAL

NEEDS OF MNC BPO'S IN INDIA”
HCL

1
 ABSTRACT
The author attempts to explore the positives of cross-cultural interactions in
multicultural organizations such as multinational companies (MNCs) and multicultural teams
(MTs). The research was carried in the Indian subsidiary operating in Poland. The prior research
has generally accentuated problems in relationships among foreigners and less effort has been
made so far to examine the benefits flowing from multiculturalism. Therefore, there is a need to
fill in the gap identified above by providing evidence that professional contacts with
representatives of different national cultural circles may be very fruitful for both multicultural
organizations as well as individuals who are employed by them. The initial results study suggests
that the following major positives can be obtained due to cultural diversity, namely
personal growth; 2) more creativity and innovation due to, among other factors, enhanced
learning; 3) flexibility in working styles; 4) more effective communication; 5) individual
benefits; and finally 6) confrontation with stereotypes.

2
 INDEX

CH. NO. PARTICULARS PAGE NO.

CHAPTER -1 INTRODUCTION

NEED &IMPORTANT OF THE STUDY

OBJECTIVES OF THE STUDY

SCOPE OF THE STUDY
LIMITATIONS OF THE STUDY

CHAPTER -2 REVIEW OF LITERATURE

CHAPTER -3 COMPANY PROFILE

INDUSTRY PROFILE

CHAPTER-4 ANALYSIS OF DATA BASE MANAGEMENT

CHAPTER -5 FINDINGS
SUGGESTIONS
& CONCLUSIONS

BIBLIOGRAPHY

ANNEXURE

3
 CHAPTER-1
INTRODUCTION

4
 INTRODUCTION

The internationalization of business transactions is not a new phenomenon in

the global economy. In today’s turbulent environment, characterized by growing business
and technological uncertainties, corporations are faced with various new challenges
(Chmielecki, 2009). International business development tends to become a condition of
existence of many firms, often regardless of size or scope of activity (Chmielecki, 2013).
The organization of market places has shifted from market-based hierarchical models to
hybrid arrangements involving growing role of vendor participation. These new market
structures have led to Business Process Outsourcing (BPO) gaining more and more
importance among new forms of business to business exchanges.
The internationalization of business has led to a growing importance of international
human resource management (IHRM) (Desatnick and Bennet 1977, Evans et al. 2002).
International assignments in multinational corporations (MNCs) over the last few decades
have increased. Consequently, expatriation has become a significant IHRM issue for
MNCs as well as other organizations with an international scope (Osman-Gani & Tan,
2005). What is more. organizations are increasingly outsourcing many of their business
processes through external service providers. The current Business Process Outsourcing
market is predicted to continue growing at around 25% annually.
BPO in India and Poland
The BPO has gain credibility in recent times. With the concepts of lean and agile
corporations BPO offer a viable alternative to traditional processes. Business Process
Outsourcing is a broad term referring to outsourcing in all fields. It is a method of
subcontracting various business-related operations to a third party. BPO is one of the
fastest growing segments of Information Technology Enabled Services (ITES) industry in
India. BPO industry in India is progressing at an enormous speed. The industry accounts
for a revenue of US$39.6 bn and has emerged as one of the largest private industries
providing direct employment to over 1.6 million professionals.
The potential for Poland to become an interesting location for advanced BPO services
exists. Looking at the pool of educated resources, Poland stands out. And recent
investments demonstrate that investors expect the industry to grow further.
In today's highly globalized and competitive business environment, the world is shrinking into
one exhaustive platform. Multinational companies engage with people across borders on a day to
day basis. Collaborating with colleagues and customers from varied cultural backgrounds has
5
become an integral part of an organization's routine operations.With companies striving hard to
provide high levels of user experience, just a combination of technical skills and soft skills isn't
enough, i . Outsourcing began in the early eighties when organizations started delegating their
non-core functions to an external organization that was specialized in providing a particular
service, function or product. In outsourcing, the external organization would take on the
management of the outsourced function. In outsourcing, the outsourcer and the outsourcing
partner have a greater relationship when compared to the relationship between a buyer and a
seller. In outsourcing, the outsourcer trusts the outsourcing partner with vital information.
Outsourcing is no longer confined to the outsourcing of IT services. Outsourcers in the US and
UK now outsource financial services, engineering services, creative services, data entry services
and much more.
BUSINESS PROCESS OUTSOURCING –
“Business Process Outsourcing” is the fastest-growing segment of outsourcing market – A
industry which we all “Love to hate and hate to love”.
Business process outsourcing is a type of outsourcing that involves the contracting of the
operations and the responsibilities of a specific business processes or functions to a third party
service provider.
BPO is typically categorized in to back-office outsourcing which includes internal business
functions i.e. human resources, or finance and accounting and front office outsourcing which
includes customer related services i.e. call center services. Business process outsourcing (BPO) is
the leveraging of technology vendors to provide and manage a company's critical and/or non-
critical enterprise applications. Through the business transformation process of service-oriented
transformation, which leverages the technologies and standards of service-oriented architecture,
companies can increasingly leverage third party companies that act as business service providers.
Business process outsourcing can use off-shore resources, but is not required.
Business process outsourcing (BPO) is the act of giving a third-party the responsibility of
running what would otherwise be an internal system or service conducted in-house.
Outsourcing system allows companies to contract for services that are not within the scope of
their expertise, so that they can focus their time, money and energy on their core competencies
instead of wasting valuable resources trying to gain Understanding of areas that are somebody
else's expertise.
BPO is seen as outsourcing that involves IT supported processes but that doesn’t involve
discontinuities between the IT and the rest of the business process.

6
BPO has evolved far from these IT-specific roots and now encompasses nearly every business
process.To be sure, the implementation of a BPO initiative will always involve a technology
component, but for that matter so does implementation of a benefits administration office at the
local beer distributor. The point is, nearly every modern business innovationcomprises both a
technical and a social component. Decision making, strategy setting, service delivery, and
virtually every other businessactivity are now sociotechnical in nature, involving humans
interfacing with technical systems. BPO is like that.
Business process outsourcing (BPO) is the act of giving a third-party the responsibility of
running what would otherwise be an internal system or service conducted in-house.
Outsourcing system allows companies to contract for services that are not within the scope of
their expertise, so that they can focus their time, money and energy on their core competencies
instead of wasting valuable resources trying to gain Understanding of areas that are somebody
else's expertise.
BPO is seen as outsourcing that involves IT supported processes but that doesn’t involve
discontinuities between the IT and the rest of the business process.
BPO has evolved far from these IT-specific roots and now encompasses nearly every business
process.To be sure, the implementation of a BPO initiative will always involve a technology
component, but for that matter so does implementation of a benefits administration office at the
local beer distributor. The point is, nearly every modern business innovationcomprises both a
technical and a social component. Decision making, strategy setting, service delivery, and
virtually every other businessactivity are now sociotechnical in nature, involving humans
interfacing with technical systems. BPO is like that.
Fundamentally, then, BPO is a socio-technical business innovation that provides a rich new
source of competitive advantage. By socio-technical we mean that BPO requires skillful
management of people and technology (hardware and software).The manager who initiates a
BPO strategy must find effective ways to introduce people to technology and vice-versa. If left
solely in the hands of technical specialists, a BPO initiative is likely to fail for lack of paying
attention to the soft issues of human relationships, change management, and organizational
culture. If left solely in the hands of nontechnical managers, it is likely to fail for unrealistic
expectations about the potential and limitations of the enabling technologies.

7
The reasons behind outsourcing the processes are as follows
 Cost Cutting - Process outsourcing has been used for times immemorial to enhance
shareholder value by controlling costs and avoiding capital expenditures associated with
purchase of new systems and upgradation. These savings can then be channeled in to the core
areas of the company. It has been indicated that for every dollar invested in BPO across India, the
value derived by the US economy is between $ 12-14.
 Improving efficiency and productivity – Conventionally, executives spends their 80% of their
time in management of details and only 20% on formulating strategies. But the situation is
remarkably different when the business process is outsourced. This saved time helps them
tremendously to explore new revenues areas, accelerate other projects, and focus on their
customers. Business process outsourcing has another big advantage which leads to increase in
capabilities of the employees and the company. This will results in to productivity improvements.
Companies that outsource their business processes are often able to capture new efficiencies and
in the process improve upon their productivity. They are in a better position to reallocate their
resources to other important projects.
 Focus on Core competencies - The current business scenario worldwide dictates that a
successful company must have a great core process to just to stay in the game. Outsourcing is the
only way a company can invest its time and money on these vital core processes and at the same
time get better performance out of non-core functions. To remain competitive in the global
economy, you need to concentrate on what made you successful in the first place – your core
business. You can't afford to expend valuable time and energy managing transactions and
noncore processes that could be handled by other specialists.
By outsourcing non-core processes, companies can concentrate on increasing their sales and
market share, develop new products; spread out into new markets and increase customer service
and satisfactions. The most important factor behind the growth in the BPO market world wide
today is an increase in the number of enterprises that are reviewing their internal operations in an
attempt to fully understand their true core competencies. In the process they are able to focus
more on their core competencies. Business Process Outsourcing gives more freedom to the
management to focus more time, energy, and resources on building the company's core
businesses. It is because the BPOs assume full responsibility for managing the day-to-day back-
office operations.

8
 Outside expertise- Company is saved from the hassles of recruiting and training personnel.
BPOs ensure that experts from another company provide the needed guidance and skills, that too
at very low wages. Companies that want to grow internationally must continuously invest in
infrastructure and find talent around the world and this is possible only trough business process
outsourcing. Many outsourcing providers are already established globally and help in increasing
the capabilities of the companies that are outsourcing their work to these BPOs.
BPO BUSINESS MODELS
Different models have been used for conducting business in BPO. The regular outsourcing
models of on-shoring, near-shoring and offshoring are seen in BPO as well. TPI, a sourcing
advisory, has observed that in addition to on-shoring, near-shoring and offshoring, BPO
operations are also conducted through the following three business models:
 Transactional BPO: Transactional BPO handles one aspect of a process only. The customer
has to carry out a significant part of the process in-house and hence the customer owns the risk of
the process. Also, outsourcing many aspects of the process in a transactional mode leads to
complex fragmentation which can pose as a threat to productive delivery.
Niche BPO: A niche BPO carries out 3-4 aspects of a process. A niche BPO, which also makes
certain investments in the customer's process, aims at improving the efficiency of the process.
The vendor in a niche BPO works in close coordination with the buyer, sometimes seeking the
services of the customer's employees. Both the vendor and the buyer share the risk of the process.
 Comprehensive BPO: A comprehensive BPO handles both transactional and administrative
tasks in a process and takes 70 percent responsibility of the output. The vendor purchases the
buyer's assets and also hires most of its employees. Comprehensive BPO has bulk deals lasting
for 7-10 years.

9
 NEED OF THE STUDY
A team mostly consists of people from different backgrounds, in terms of profession,
region, age-group, gender, personal and work-related experiences etc. In this sense we can find
different cultures within teams and companies. In a multinational company we are often required
to collaborate with individuals dispersed across the globe, this often makes communication
difficult and the cultural differences only seem to increase.
While diversity makes the employees more flexible, accommodating and innovative, it has its
limitations too that directly impact productivity.

10
 OBJECTIVE OF THE STUDY
 To understand the cultural differences prevailing in an organization and develop
strategies to deal with the cultural differences and further draw out valuable
suggestions to make an organization succeed towards an economic stability at macro
level.
 To study and analysis of Indian BPO industry.
 Identifying the factors that have made India the #1 choice for BPO to locate in.
 Effect of recession/ slowdown on BPO sector.
 To generate the awareness/culture for corporate gifting.
 To develop strategies, loyalty programs for BPO’s workforce and to provide first
hand information to the company.

11
 STATEMENT OF THE PROBLEM:
The Business process outsourcing, the most flourishing Indian industry sector has
emerged as India’s most promising sector, and has been growing at a constant rate.
Due to the extensive work pressure and stress-full work culture the employees sometimes get
de-motivated.

12
 SCOPE OF THE STUDY
The marketing research in this context is concerned with one of its several functions,
marketing research that deals with the study of BPO sector for analyzing the
employees attitudes towards corporate gifts, that are used to appreciate them for their
hard work and motivates them to repeat the same.

13
 RESEARCH METHODOLOGY
Sampling Plan:
This study being expectation around 50 respondents, basically employees those work
Sources of data:
Primary data is collected for the research.
Questionnaire:
A structured questionnaire is prepared for the data collection and the survey is conducted
through the questionnaire in HYDERABAD. The questionnaire was filled by 50
respondents. It is the only primary source used in this study and based on the
questionnaire only the study has been conducted.
Fieldwork:
This study involved a field work in HYDERABAD in the form of administration of
questionnaire, collection of responses and other related field activities.

14
 LIMITATION OF THE STUDY

 Time is the major constrains.

 The study is restricted to the Hyderabad only.
 The study is based on the assumptions that all the responses given are true.
 Sample size is small; hence the outcome cannot be applicable to the universe.
 Respondent provides data from their own intuitions and perception, which may be rough
estimates.
 Since this study is time specified, the study findings are valid only for this study only.

15
 CHAPTER-2
REVIEW OF LITERATURE

16
 REVIEW OF LITERATURE

The author conducted semi-structured, in-depth individual interviews based on pre-

prepared sets of open-ended questions with managers and specialists employed in the company
and involved in intercultural interactions. The in- depth interviews were considered the most
accurate method due to their open-ended and flexible character as well as a more detailed and
exact observations they offer (Dearnley, 2005; Brenner, 2009). Additionally, the chosen method
is best suited if a researcher wants to investigate someone’s experience and attitude as well as to
get insights into the study which may have been missed in the previous research (Kühlmann and
Hutchings, 2010). The questions in the interview were divided into four main sections, i.e. 1) the
characteristics of the participant’s job position and his/her working relationships with foreigners,
2) his/her evaluations of the positive and negative outcomes of cooperation with representatives
of different cultures, 3) conditions necessary to establish fruitful cross-cultural interactions, 4) the
interviewee’s particulars. Each interview usually lasted from 45 to 90 minutes and was carried
out in the companies’ offices in the first half of the year 2014. The authors conducted interviews
with an average time of 70 minutes. The interviews were then transcribed, manually coded and
analyzed by the researchers, who followed the procedure of the qualitative content analysis
(Brenner, 2009; Hsieh and Shannon, 2005).

The multinational subsidiaries were selected via a purposive sampling technique, whereas the
research participants were pointed out by the companies. The MNCs’ official consent for
conducting the research was granted to the authors, yet with the stipulation that no information
would be collected, disclosed and published which would identify a particular employee and the
company as the source of the specific information. The participation in the research was on
voluntary basis.

To describe the subsidiary, the authors acquired additional information via semi-structured
interviews with the representatives of the companies, observations during office visits as well as
analysis of the MNCs’ documents and web sources. Therefore, it needs to be emphasized that
methodological and data triangulation in the research was
ensured (Maxwell, 2005) since the authors used both multiple methods of data collection (i.e. in-
depth interviews, observation and documents analysis) and multiple sources to gather
information within a given method (i.e. specialists and different level managers from various
departments, both Poles and foreigners).
17
Infosys Ltd (formerly Infosys Technologies) is an Indian multinational corporation providing
business consulting, information technology, software engineering and outsourcing services. The
company is the third-largest India-based IT services company by 2014 revenues, and the fifth
largest employer of H-1B visa professionals in the United States in FY 2013. The company was
co-founded in 1981 by N. R. Narayana Murthy, Nandan Nilekani, N. S. Raghavan, S.
Gopalakrishnan, S. D. Shibulal, K. Dinesh and Ashok Arora. The Lodz Delivery Center (DC)
was established when Infosys BPO took over the Philips Shared Service Center (SSC) in 2007.
Lodz Delivery Center (DC) is the largest Infosys location outside India, offering BPO and ITO
services across 48 geographies in 24 languages. Apart from being a leading employer in the
region, Infosys BPO Poland also among the largest international investors in the Lodz region.
The majority of employees are university graduates, holding specialist certifications, master of
business administration (MBA) degrees, and other postgraduate diplomas.
According to research by Association of Business Services Leaders, 38 new service centres
and over 20 new investors came to Poland only in 2011. Over the past year, Poland passes India
in the rate of creating new jobs and expansion of already existing projects in BPO sector. The
number of employees who have been hired in this sector has been rising 20% annually since the
year 2008. PAIZ (Polish Information and Foreign Investment Agency) estimates that 45% of the
existing “outsourcing” centres in Poland are Business Process Outsourcing (BPO) centres and IT
outsourcing centres (ITO), followed by Shared Service Centres SSC (35%) and Research and
Development centres R&D (20%). Most typical processes executed by Poland-based outsourcing
centres are finance and accounting, IT as well as research (http://www.paiz.gov.pl).
An emerging important player in Poland’s outsourcing sector are the Indians. While the
Americans’ expansion has been driven mostly by cost-reduction and smoother interaction with
the European markets, Indian corporations are driven by their clients to offer services for their
European operations.
Intercultural Interactions The challenges facing firms in the internationalization process have
been well described and debated in the literature (Johansen & Vahlne,2003; Leonidou et al, 1998;
Fletcher, 2001; Liesch, 2002; McDougall, 2000). One of the challenges is obviously Diverse
Workforce. Human Resources Management continues to be the “nerve centre” in outsourcing
organizations and plays a strategic role in their functioning and development. Organizations that
have not yet paid enough attention to human resources will necessarily have to redefine their
thinking to stay competitive and survive in this competitive environment.

18
BPO organizations know that their survival and growth as such depends on the well-being of
their employees, which in turn promotes them to render impeccable customer-service.
BPO industry has given rise to crucial questions and doubts regarding the human resources
employed with them. Moreover, the nature and timing of work in these outsourcing units have
given rise to certain issues which are of extreme interest to the HR specialists with one of the
issues being cross-cultural interactions.
Employees who work with foreigners in multinational subsidiaries are involved in numerous
cross-cultural interactions. These contacts can be seen as very complex social interactions that
exhibit mutually oriented behaviors of people (Rummel, 1976), which are interpreted by them
through the lens of their cultures (Rozkwitalska, 2014; Müller, 1998). They are complex since
this type of relationship is affected not only by cultures of interacting employees but also by their
personalities, professional background, relationship with one another and a given situational
context (Müller, 1998). Intercultural interactions embrace various types of relationships in
MNCs. They can be both direct and indirect interactions (e.g. working in collocated MTs or in a
virtual multicultural team) as well as internal and external ones (e.g. a superior-subordinate
relationship or a negotiation with a supplier), whose intensity and frequency may significantly
differ depending on a particular situation. Cooper et al. ( 2007) identify several characteristics of
a MNC that increase likelihood of cross-national interactions and as a result cross-cultural
contacts among its stakeholders, such as a high degree of internationalization and integration as
well as a geocentric staffing policy.
Despite the fact that the research findings on effects of intercultural interactions quite opulent,
particularly with regard to the outcomes of cultural diversity within a team (for overview see e.g.
Stahl et al., 2009), looking for the negatives rather than the positives has prevailed in the prior
studies (Stahl et al., 2010). Such terms as cultural barriers, cultural clash, cultural friction
(Björkman et al., 2007; Brock et al., 2008; Graham, 2003; Shenkar et al., 2008), etc. reflect the
negative view on relationships among representatives of different cultures and accentuate
potential problems that may occur in mutual contacts due to cultural distance. Such a distance
increases a risk of so- called inappropriateness of behaviors that are manifested and interpreted
by the participants of intercultural interactions, which in turn leads to the negative outcomes, e.g.
anger or rejection of those who are seen as deviants (Cooper et al., 2007). Inappropriateness of
behavior means that interacting individuals observe discrepancies in mutual behaviors that
contradict their cultural norms (Cooper et al., 2007). Despite being beyond the scope of this
paper, it is also worth signaling that if a foreigner does not behave accordingly in a cross-cultural
interaction, i.e. s/he exhibits inappropriateness, then s/he may experience liability-of-foreigners
19
with its negative consequences (see e.g. (Magier-Łakomy and Rozkwitalska, 2013; Harvey et al.,
2011; Moeller et al., 2013).
To explain problems in cross-cultural interactions researchers have referred to the social
identification and social categorization theory further supported by the similarity-attraction
paradigm, which laid the foundation for the argument that cultural differences among people are
not desired if interactions among them are to be smooth and effective (Cooper et al., 2007; Stahl
et al., 2010; Stahl et al., 2009; Rozkwitalska, 2013; Yeager and Nafukho, 2012). Thus cultural
differences may produce such negative outcomes as conflicts, process losses, barriers to social
integration and changes, ineffective communication and decision making, and decrease
satisfaction (Mannix and Neale, 2005; Stahl et al., 2009; Shenkar, 2001; Björkman et al., 2004;
Uhlenbruck, 2004; Hernández-Mogollon et al., 2010). Referring solely to the surface-level
cultural diversity sources, such as e.g. nationality (Yeager and Nafukho, 2012), the social
dominance theory offers an explanation on how a country of origin of a person affects his/her
relationships with foreigners. Namely, it lets to assume that people may be biased towards others
who come from countries not perceived as socio-economically dominant (Carr et al., 2001).
The opposite stream in the research on cultural diversity, the opportunities-focused one, has been
inspired among other factors by Positive Organizational Scholarship lens applied in various
management studies (Stahl et al., 2010). As claimed by Stahl et al. ( 2010), current IM/IB
research and theory overemphasize problems in intercultural interactions instead of explaining
how to realize the benefits from multiculturalism in a workplace. Thus, there is a
necessity to provide more evidence that working with foreigners in MNCs may be fruitful for
individuals as well as their employing organizations and how to utilize the potential of
multicultural staff.
Creativity and innovation are the primary possible beneficial outcomes of working with
foreigners (Mannix and Neale, 2005; Stahl et al., 2010; Watson et al., 1993). Other positives
which are associated with the aforementioned ones include less group-thinking, broader
perspectives, enhance learning and knowledge sharing as well as better adaptability (Mannix and
Neale, 2005; Stevens et al., 2008; Stahl et al., 2010; Watson et al., 1993). Basing further on the
social capital theory, it can be inferred that less a cohesive group is it may reveal a higher
aptitude for attaining a complex organizational task and produce process gains (Stahl et al.,
2010), while referring to the intergroup contact theory, it is deduced that cross-cultural
interactions contribute to reduction of prejudice towards foreigners (White et al., 2011; Pettigrew
and Tropp, 2008). The previous research suggests that the positives of intercultural contacts
embrace the following ones, i.e. improved learning abilities, quality and positive organizational
20
changes, more effective communication, increased satisfaction as a result of needs fulfillment
(such as growth, adventure or variety) and successful handling with cultural challenges, building
social bonds, personal growth, self-efficacy and optimism (Stahl et al., 2010; Stahl et al., 2009;
Rozkwitalska et al., 2014).
The review of the relevant state-of-the-art literature does not offer a consistent argument which
actually prevails in intercultural interactions. On the one hand, research proves that working with
foreigners may be detrimental if communication, team performance, changes, a decision making
process, social integration and satisfaction are considered. On the other hand, there are works
which offer opposite evidence with regard to those outcomes. Yet, it appears that the univocal
negatives of working with foreigners concern the risk of harmful conflicts and barriers to social
integration, while less questionable positives in the prior studies comprise creativity/innovation
and personal development. Those ‘double-edged sword’ effects (Mannix and Neale, 2005; Stahl
et al., 2010) of intercultural interactions may indicate that situational factors determine what the
actual outcomes of working with foreigners are and highlight a need for additional research that
would identify the fruits of professional contacts among representatives of different cultures as
well as what conditions them.

21
 CHAPTER-3
COMPANY PROFILE
INDUSTRY PROFILE

22
 COMPANY PROFILE
HCL Technologies (Hindustan Computers Limited) is an Indian multinational
information technology (IT) services and consulting company headquartered in Noida. It is a
subsidiary of HCL Enterprise. Originally a research and development division of HCL, it
emerged as an independent company in 1991 when HCL entered into the software services
business.[7] The company has offices in 50 countries and over 187,000 employees.
HCL Technologies is on the Forbes Global 2000 list.[10] It is among the top 20 largest publicly
traded companies in India with a market capitalisation of $50 billion as of September 2021.[11]
[12] As of July 2020, the company, along with its subsidiaries, had a consolidated annual revenue
of ₹71,265 crore (US$10 billion).
HCL Enterprise
HCL Enterprise was founded in 1976.
The first three subsidiaries of parent HCL Enterprise were:
HCL Technologies - originally HCL's R&D division, it emerged as a subsidiary in 1991
HCL Infosystems
HCL Healthcare
The company tried to stay focused on hardware,[18] but, via HCL Technologies, software and
services is a main focus.
Revenues for 2007 were US$4.9 billion.
Revenues for 2017 were US$6.5 billion, and HCL employed over 105,000 professionals in 31
countries.
Revenues for 2018 were US$9 billion, and HCL employed over 110,000 professionals in 31
countries. A unit named HCL Enterprise Solutions (India) Limited was formed in July 2001.
Currently HCL Technologies is a subsidiary of Vamasundari Delhi through a chain of entities in
between. Vamasundari (Delhi) is owned by Shiv Nadar and it in turns holds majority of shares in
most HCL group companies.
On 1 July 2019, HCL Technologies acquired a select few products of IBM. HCL Technologies
took the full ownership of research and development, sales, marketing, delivery, and support for
AppScan, BigFix, Commerce, Connections, Digital Experience (Portal and Content Manager),
Notes Domino, and Unica.
Formation and early years
In 1976, a group of six engineers, all former employees of Delhi Cloth & General Mills, led by
Shiv Nadar, started a company that would make personal computers. Initially floated as
23
Microcomp Limited, Nadar and his team (which also included Arjun Malhotra, Ajai Chowdhry,
D.S. Puri, Yogesh Vaidya and Subhash Arora) started selling teledigital calculators to gather
capital for their main product. On 11 August 1976, the company was renamed Hindustan
Computers Limited (HCL).[23]

On 12 November 1991, a company called HCL Overseas Limited was incorporated as

a provider of technology development services. It received the certificate of commencement of
business on 10 February 1992 after which it began its operations. Two years later, in July 1994,
the company name was changed to HCL Consulting Limited and eventually to HCL
Technologies Limited in October 1999.
HCL Technologies is one of the four companies under HCL Corporation, the second company
being HCL Infosystems. In February 2014 HCL launched HCL Healthcare.[24] HCL TalentCare
is the fourth and latest venture of HCL Corporation.
HCL Technologies began as the R&D Division of HCL Enterprise,[26] a company which was a
contributor to the development and growth of the IT and computer industry in India. HCL
Enterprise developed an indigenous microcomputer in 1978, and a networking OS and client-
server architecture in 1983.[28] On 12 November 1991, HCL Technologies was spun off as a
separate unit to provide software services.
HCL Technologies was originally incorporated as HCL Overseas Limited. The name was
changed to HCL Consulting Limited on 14 July 1994.[30] On 6 October 1999, the company was
renamed 'HCL Technologies Limited' for "a better reflection of its activities."[29] Between 1991
and 1999, the company expanded its software development capacities to US, European and
APAC markets.
IPO and subsequent expansion
The company went public on 10 November 1999, with an issue of 142 crore (14.2 million)
shares, valued at ₹4 each.[31] During 2000, the company set up an offshore development centre
in Chennai, India, for KLA-Tencor Corporation.
In 2002, it acquired Gulf Computers Inc.
In March 2021, HCL Technologies expands partnership with Google Cloud to bring HCL
Software's Digital Experience (DX) and Unica Marketing cloud-native platforms to Google
Cloud.
Acquired
In July 2018 US-based Actian was acquired by HCL Technologies and Sumeru Equity Partners
for $330 million.
24
Joint venture
On 23 July 2015, CSC (NYSE: CSC) and HCL Technologies (BSE: HCLTECH) announced a
joint venture agreement to form a banking software and services company, Celeriti FinTech.[53]
[54]
In October 2017, IBM struck a "strategic partnership" with HCL Technologies that had the latter
firm take over development of the IBM Lotus Software's Notes, Domino, Sametime and Verse
collaboration tools.
In May 2018, HCL Technologies announced that it has joined hands with Transportation
Alliance (BITA), known for incorporating blockchain in the transportation industry, to
implement blockchain.
Partnership
On 9 June 2015 PC maker Dell announced a strategic distribution partnership with HCL Info
systems.
In October 2018, TransGrid signed a 5-year managed services deal with HCL Technologies for
IT services delivery and providing outsourcing support, with the outsourcing teams to be based in
Australia.
HCL Tech signs seven-year exclusive partnership with Temenos - The exclusive strategic
agreement will be for non-financial services enterprises, where HCL has been granted a license
to develop, market, and support Temenos multi-experience development platform (MXDP). This
agreement will help provide HCL's non-financial services clients leading technology and the
higher levels of services and support.
Operations
A world-map showing the countries where HCL Technologies has operations.
HCL Technologies operate in 50 countries.ncluding its headquarters in Noida, India. It has
establishments in Australia, China, Hong Kong, India, Indonesia, Israel, Japan, Malaysia, New
Zealand, Saudi Arabia, Singapore, South Africa, the United Arab Emirates and Qatar. In Europe
it covers Belgium, Bulgaria, Czech Republic, Denmark, Estonia and Romania Finland, France,
Germany, Italy, Lithuania, Netherlands, Norway, Poland, Sweden, Switzerland, Portugal, and
United Kingdom. In the Americas, the company has offices in Brazil, Canada, Mexico, Puerto
Rico, Guatemala, and United States.
Cary, North Carolina is the base for the American operation and as the Cary Global Delivery
Center.

25
Business lines
Applications Services and Systems Integrations
BPO/Business Services: This division has "delivery centres" in India, Philippines, Latin America,
USA, HCL[65] BPO Northern Ireland, and Europe.
Engineering and R&D Services (ERS)
Infrastructure Management Services (IMS)
IoT WoRKS
DRYiCE
Digital & Analytics and e-publishing
Cybersecurity and GRC Services
Financial Risk & Compliance Solutions
Infrastructure Services Division
A subsidiary of HCL Technologies, HCL Infrastructure Services Division (ISD) is an IT services
company. Headquartered in Delhi, NCR, India, HCL ISD was instituted in 1993 with the
objective to address the demand for cost-effective management of technology infrastructure
across geographically dispersed locations. HCL ISD, also known as HCL Comnet Systems and
Services Ltd. in India, diversified ito provide enterprise IT infrastructure globally in 1993
winning the first order to establish India's first floorless stock exchange.

26
 INDUSTRY PROFILE
INDIAN BPO INDUSTRY

At the turn of the millennium, India has numerous reasons to smile about. The
economy is no longer passive and redundant; on the contrary it is one that is being steered by the
winds of social and economic changes. During the past few years, the country has seen
phenomenal developments in its political, social and economic infrastructure, accelerated by the
strong forces of globalization and Information Technology. A country with a resurgent,
progressive economy; India can be rightly called the foster-child of globalization. The booming
Information Technology (IT) segment comprising ITES (IT-enabled services) / BPO (Business
Process Outsourcing) are the core sectors that have driven the country into the epicenter of
change. The liberalization of the Indian Telecom sector in 1994 gave an unexpected boost to the
ITES/BPO industry.

India has enormous opportunities emerging from globalization and consequent lowering of tariff
barriers. Information Technology has given India formidable brand equity in the global markets.
Indian BPO companies have a unique distinction of providing efficient business solutions with
cost and quality as an advantage by using state of art technology. Through joint efforts of
Government and the Industry, software development and IT enabled services have emerged as
niche opportunities for India in the global context. The Government has been making continuous
efforts to make India a front-runner in the age of Information revolution.

In no time, India has turned into a hot destination for global offshore outsourcing companies. The
expansion in this sector can be attributed to the leading IT giants, captive players and third party
service providers, who dominate the Indian ITES/BPO market. While the countries around the
world are vying for a fair share of the cake, India has grabbed the pie as the preferred destination
for offshore outsourcing. Indeed, India is shining! By virtue of different advantages India has
been able to maintain its supremacy over its rivals in the BPO industry but there are a number of
other countries, which can give India run for its money in Business Process Outsourcing. Some
of the prominent competitors of BPO India are China, Philippines, Mexico, Canada, and
Malaysia etc…

27
2008 was a transformational year for the Indian Information Technology-Business Process
Outsourcing (IT-BPO) sector, as it began to re-engineer itself to face the challenges presented by
a macro-economic environment which witnessed substantial volatility in commodity prices,
inflation, and decline in GDP rates, cross-currency movement, finally culminating in the
economic downturn.
In an increasingly globalised world, significant complexity and uncertainty is getting attached to
this unprecedented economic crisis. The Indian economy has also been impacted by the
recessionary trends, with a slowdown in GDP growth to seven per cent. The focus and
exponential growth in the domestic market has partially offset this fall and insulated the country,
resulting in net overall momentum. The IT-BPO industry in India has today become a growth
engine for the economy, contributing substantially to increases in the GDP, urban employment
and exports, to achieve the vision of a “young and resilient” India.
During the year, the sector maintained its double digit growth rate and was a net hirer. This
growth has been fueled by increasing diversification in the geographic base and industry
verticals, and adaptation in the service offerings portfolio. While the effects of the economic
crisis are expected to linger in the near term future, the Indian IT-BPO industry has displayed
resilience and tenacity in countering the unpredictable conditions and reiterating the viability of
India’s fundamental value proposition. Consequently, India has retained its leadership position in
the global sourcing market.While the current mood is that of “cautious optimism,” the industry is
expected to witness sustainable growth over a two-year horizon, going past its USD 60 billion
export target in FY2011. While the industry has significant headroom for growth, competition is
increasing, with a number of countries creating enabling business environments aimed at
replicating India’s success in the IT-BPO industry. Hence, concerted efforts are required by all
stakeholders to address the current challenges, to ensure that India realises its potential, and
maintains its leadership position.

India still has the leading edge in the BPO industry, but it should keep on improvising to
maintain its stability. Therefore India should be on its guard to maintain its position intact. If
India has to maintain its supremacy in BPO and its software workforce, then BPO India has to
learn Spanish, which is spoken in more than 24 countries. With India already stamping its
superiority in the BPO sector with its knowledge of the English language, it now needs just one
other language that will make the world its market, which is Spanish.
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
28
approximately 55% market share of the US$ 200-250 billion global services sourcing business in
2019-20.
The IT industry accounted for 8% of India’s GDP in 2020. According to STPI (Software
Technology Park of India), software exports by the IT companies connected to it, stood at Rs.
1.20 lakh crore (US$ 16.29 billion) in the first quarter of FY22.
MARKET SIZE
The IT & business service industry’s revenue was estimated at ~US$ 6.96 billion in the first half
of 2021, an increase of 6.4% YoY. The export revenue of the IT industry is estimated at US$ 150
billion in FY21. According to Gartner estimates, IT spending in India is estimated to reach US$
93 billion in 2021 (7.3% YoY growth) and further increase to US$ 98.5 billion in 2022. The
BPM sector in India currently employs >1.4 million people, while IT and BPM together have
>4.5 million workers, as of FY21.
India's software services exports (excluding exports through commercial presence) increased by
4% in FY21 compared with FY20 and are estimated at USD 133.7 billion during 2020-21.
Indian software product industry is expected to reach US$ 100 billion by 2025. Indian companies
are focusing to invest internationally to expand global footprint and enhance their global delivery
centres. In line with this, in February 2021, Tata Consultancy Services announced to recruit
~1,500 technology employees across the UK over the next year. The development would build
capabilities for TCS to deliver efficiently to the UK customers.
As of FY21, the IT industry employed 4.5 million people.
The data annotation market in India stood at ~ US$ 250 million in FY20, of which the US market
contributed ~ 60% to the overall value. The market is expected to reach ~ US$ 7 billion by 2030
due to accelerated domestic demand for AI.
INVESTMENTS/ DEVELOPMENTS
Indian IT's core competencies and strengths have attracted significant investment from major
countries. The computer software and hardware sector in India attracted cumulative foreign
direct investment (FDI) inflows worth US$ 74.12 billion between April 2000 and June 2021. The
sector ranked 2nd in FDI inflows as per the data released by Department for Promotion of
Industry and Internal Trade (DPIIT). Japanese investments in the Indian IT sector grew 4X
between 2016 and 2020. Investments stood at US$ 9.2 billion in the review period.
Leading Indian IT firms like Infosys, Wipro, TCS and Tech Mahindra are diversifying their
offerings and showcasing leading ideas in blockchain and artificial intelligence to clients using
innovation hubs and research and development centres to create differentiated offerings.
Some of the major developments in the Indian IT and ITeS sector are as follows:
29
In November 2021, Wipro partnered with TEOCO to build solutions for communication service
providers (CSPs) to improve network automation, efficiency, flexibility and reliability.
In August 2021, Tata Consultancy Services was adjudged a leader in the NelsonHall NEAT for
CX Services in Banking, Financial Services and Insurance (BFSI).
In August 2021, SAP India and Microsoft announced the introduction of TechSaksham, a
collaborative skilling initiative aimed at enabling young women (from underprivileged regions)
to pursue careers in technology. 62,000 women students will be trained in artificial intelligence
(AI), cloud computing, web design and digital marketing as a result of this collaboration.
In August 2021, Startek, a business process management company, announced a plan to increase
its minority stake in CSS Corp to reach a wider market. It also announced a plan to recruit
>2,000 employees in India, in FY22.
In July 2021, Wipro announced plans to invest US$ 1 billion over the next three years to expand
its cloud technology capabilities through acquisitions and collaborations.
In July 2021, Infosys announced that it has set up an Automotive Digital Technology and
Innovation Centre in Stuttgart, Germany. Automotive IT infrastructure professionals stationed in
Germany will transfer from Daimler AG to the new Digital Technology and Innovation Centre as
part of Infosys' relationship with Daimler.
In July 2021, TCS expanded its strategic partnership with Royal London, the largest mutual life
insurance, pensions and investment company in the UK, to help the latter transform its pension
platform estate and deliver market-leading services to members and customers.
In July 2021, Tata Technologies partnered with Stratasys, a 3D printing technology company, to
provide advanced additive manufacturing technologies to the Indian manufacturing ecosystem.
In July 2021, Tech Mahindra Foundation and Wipro GE Healthcare have joined forced to offer
skilling and upskilling courses to students and healthcare technicians.
In July 2021, HCL announced a multi-year agreement with Fiskars Group, consisting of a family
of lifestyle brands including Fiskars, Gerber, Iittala, Royal Copenhagen, Waterford and
Wedgwood for digital transformation.
In July 2021, TCS launched Jile 5.0, a key release of its Enterprise Agile, on-the-cloud services,
planning and delivery tool that enables enterprises to meet the large-scale development needs of
multiple distributed teams.

30
 CHAPTER-4

DATA ANALYSIS

31
 DATA ANALYSIS AND INTERPRETATION

Sample taken = 50
Finding 1.
Preference as reward and recognition –
 Cash.
 Tangible Goods.

Table 1.
Type of Reward Number of Respondents
Cash 34
Tangible Goods 16

Graph 1.

Interpretation.-
From the above table and graph shown it is inferred that among the group of
respondents, more than 70 % preferred cash as an mode of rewarding employees in
comparison to any tangible goods being offered to them.

Finding 2.
Preference among the tangible goods -
 Customized Goods.
 Off-the-shelf Goods.

32
Table 2.
Type of Tangible Rewards Number of Respondents
Customized 41
Off-the-shelf 9

Graph 2.

Interpretation –
From the above table and graph shown it is easily inferred that the customized
products are preferred among the set of respondents as compared to off-the-shelf
products as an reward and recognition.
Finding 3.
Importance of featuring company’s logo/Name in which individual is working
 Essential.
 Quiet Important.
 Not Important.

33
 

Table 3.
Logo /Name of the Number of respondents
organization
Essential 35
Quiet Important 12
Not Important 3

34
Graph 3.

Iterpretation-
Around 70 % respondents preferred company’s Logo/Name to be featured on the
gifts.
24% gives importance to featuring it but not necessary.
6% respondents doesn’t give any importance at all to feature company’s name and
logo.
Finding 4.
What types of goods do you tend to look for as a gift ?
 A mixture of gifts to suit the different needs.
 Low Value .
 High Value.

Table 4.
Type of Goods Number of respondents % of respondents
Mixture of gifts 42 84%
Low valued - -
High Valued 8 16%

Graph 4.

35
Interpretation –

From the above interpreted graph and table it is clearly shown that the mixture of
goods that suits the different needs of employees is preferred most rather than high
valued gifts and low value Items.
 84 % respondents favors the gifts that suits different needs.
 16 % go with high value gifts.
 No respondents favored low valued gifts.

36
Finding 5.
What is the key role of gifts and incentives ?
 Enhancing the company image.
 Engender goodwill.
 Reate loyalty.
 To cement existing business client/employee relation.
 Increase brand awareness.
Table 5.
Role of gifts and Incentives Number of respondents
Enhancing company’s image 9
Engender goodwill 7
Create loyalty 10
Cement existing relationship -
Increase brand awareness 24

Graph 5.

Interpretation – It is clear from the above table and graph shown that the major
role of gifts and incentive is to create brand awareness.

37
Finding 6. Do you feel that corporate gifts and incentives achieve their purpose
and objectives ?
 Always
 Sometimes
 Not very often.

Table 6.
Purpose and objective’s Number of respondents % respondents
Always 15 30%
Sometimes 24 48%
Not very often 11 22%
Graph 6.

Interpretation –
From the above table and graph shown, it is interpreted that around 30 %
respondents think that rewarding fulfills its objective.
Majority of respondents are in state of confusion, whether objective of rewarding
are achieved or not.

38
FINDING 7 . What do you think the main reason behind recession in economy?
 Due to US political backlash.
 Declining in dollors in comparison to rupee
 Credit Crunch.

TABLE 7.
OPTIONS Number of %percentage
Respondents
Due to US political backlash 8 16%
Declining in dollars in 19 38%
comparison to rupee
defaults on sub-prime 23 46%
mortgages(Credit crunch)

GRAPH 7.

Inference:- From the above table it is clear that 38% of BPO respondents say that the main
reason behind recession in economy is due to declining in dollars in comparison to rupee and
16% of the respondents say that due to political backlash and the majority i.e. 46% respondents
say it is due to defaults on sub-prime mortgages(Credit crunch). So from the analysis it is
identified that the recession in economy is due to recent credit crunch.

39
FINDING 8. Why the tax rate is increasing rapidly?
 Due to inflation.
 Due to economy boom .
 Due to government official .

TABLE 8.
Option No. of % Percentage
Respondents
Due to Inflation 26 52%
Due to economy boom 15 30%
Due to government 9 18%
official

GRAPH 8.

Inference :- As many as 52% of the respondents say that due to inflation the tax rate is
increasing rapidly, 30% say due to economy boon, 18% say that it is due to government officials.
So it is identified that most of the respondents say due to inflation the tax rate in increasing.

FINDING 9. what attracts the most to the youth to join BPO ?

 Financial Independence .
 Flexibility of Timings .
 Attractive lifestyle and culture .
 Education level doesn’t matter .

40
 TABLE 9.

Option No. of Respondents % Percentage

Financial Independence 24 48%
Flexibility of Timings 4 8%
Attractive lifestyle and 14 28%
culture
Education level doesn’t 8 16%
matter

GRAPH 9.

INFERENCE: -

From the above table it is clear that 48% of the BPO respondents say that the reason behind
joining BPO’s is because of financial independency. They need not to dependent on someone for
their expenditure’s, 28% of them say it is due to attractive lifestyle and the culture practiced ,16%
of them say it is because for joining the BPO’s education level doesn’t matter at all, one can join
BPO just after 12th and 8% says that its flexible timing that attracts them most to join BPO. So it
is identified that most of the respondents say it is due to salary i.e. Financial Independence.

41
 CHAPTER-5
SUGGESTIONS, CONCLUSIONS

42
 SUGGESTIONS
 In a multinational firm it is not the best solution to push subsidiary company into parent
company’s way of communicating, or simply let the subsidiary company work in their
own way.
 The best solution of communicating multinational firms is to reach a mutual
understanding between a parent company and subsidiary, which depends on mutual
learning and mutual adaptation- in multi-culture management perspective.
 When a parent company and its subsidiary do not share the same views which derive
from the influence of different national culture where the firm operates in, problems
and barriers will occur.
 In this study particularly, when the patent company holds the opinion that the subsidiary
company lacks initiative on work, at the same time, the subsidiary company thinks that
the parent company would not treat their suggestions seriously and afraid to express the
frustration to the parent company

43
 CONCLUSION

It started in the late ‘90s when Indian IT companies started opening new centres and
acquiring companies from Japan to Mexico, South Africa to Australia. Every such move meant
adding local employees to their rolls. It also meant training them about the company’s work
culture and mindset. Teaching them the nuances of Indian culture and society was equally
important. “In global workplace, ignoring cultural differences can While each country has its
own national culture, there is an overriding commercial culture that makes MNCs tick. This
works for Indian firms too. Wipro, for example, has over 26 development centres across the
globe but it has some core values that are rooted in India. These values give them an identity as
an Indian organization. Experts say it’s important to make the exercise interesting and fun. ‘‘The
integration process has to be easy especially if a company has been acquired. Most often these
employees tend to be a little uneasy and suspicious in the beginning. The transition has to be
handled sensitively,’’ says Basu. Wipro follows a fun and game method where people are made
to go through certain exercises. The sales team has mandatory.

44
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Market-
 And-Its-Future/718927
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