Business continuity plan in place for Sri Lanka operations, says HCL Tech CEO

HCL Technologies said on Wednesday it has a business continuity plan for operations in Sri Lanka, with adequate flexibility for workloads to be supported by teams in India and other regions.

The Indian IT services company has about 1,500 employees in Sri Lanka, a country facing an economic and political crisis.

Asked about how the company is managing its operations in Sri Lanka, Vijayakumar told PTI: “Obviously there are challenges, but the deliverables are still ongoing and we are supporting them with additional bandwidth from our Indian teams. .” the operations in Sri Lanka, there is a business continuity plan…however, as we speak, we see that the team in Sri Lanka continues to do their job well despite the challenges,’ said the big boss.

In case the teams are unable to deliver, the loads will be picked up by teams in India or other geographies, he explained.

Sri Lanka’s beleaguered President Gotabaya Rajapaksa fled to the Maldives on a military plane on Wednesday, hours before he was expected to step down amid a public outcry against him and his family for mishandling the economy that bankrupted the country.

The 73-year-old leader left the country with his wife and two security guards aboard a military plane, according to a brief statement from the Sri Lankan Air Force.

Noida-based company, HCL Technologies, on Tuesday announced a 2.4% year-on-year increase in its consolidated net profit for the three months ended June 2022 to Rs 3,283 crore. The company’s revenue stood at Rs 23,464 crore, nearly 17% higher than a year ago.

The company kept its FY23 revenue outlook in the 12-14% range, citing “strong market momentum” and said it was positive about the growth trajectory. The company expects to be in the lower end of the EBIT margin guided range of 18-20%.

In an interview on Wednesday, Vijayakumar asserted that the company is “on a good upward cycle” and will use several levers to mitigate margin challenges.

“Our services business grew 19% year-over-year, we exceeded $3 billion quarterly run rate, which is actually an annual run rate of $12 billion … Our engineering and research and development (R&D) services have exceeded half a billion dollars per quarter, which equates to $2 billion per year, the largest portfolio of engineering services possessed by a service provider,” he said.

The current market environment reflects IT transformation, driven by the cloud as a core technology platform, and HCL is “very well positioned to exploit cloud opportunities.”

”So I think we’re in a good position. Of course, there are challenges around margins… there’s a lot of demand, and supply isn’t as important as demand. So there’s going to be some dynamic around the cost of talent and the cost of execution,” he noted.

HCL Tech has enough control levers in hand, he pointed out.

“I think the most important lever is team development and productivity, and utilization is a big lever. We’ve hired a lot of rookies, they’re still training and we need to deploy them,” he said.

The company is also talking with a number of customers about increasing rates and prices, Vijayakumar said.

(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)

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