SUMMER TRAINING

ON

“Marketing Strategies”
FOR THE PARTIAL FULFILLMENT OF THE DEGREE OF
“BACHELOR OF BUSINESS ADMINISTRATION”

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

SESSION 2010-2011

Under the Guidance of: SUBMITTED BY

Kavita Verma Anshuman
BBA 5th SEM.
51235

DAV CENTENARY COLLEGE

NH-3, NIT FARIDABAD-121001
(AFFILIATED to M.D. University, Rohtak)

1
 PREFACE

Today’s market scenario is totally different from few years ago. Consumer has a
lot of choice for every product because day-by-day new companies are coming with their
product. Later there was limited choice for mostly products and companies didn’t have to
put much efforts to sale their product. But today’s scenario is totally different. Consumers
have choice because of availability of varieties and options. We can say today’s
consumer is the king of market. So it is important to know his buying behavior and try to
fulfill his demand. Company’s aim should be customer delight not costumer satisfaction.

The purpose of this dissertation project is to know the marketing strategies which
HCL Infosystems Ltd. uses to become the market leader in the field of Personal
Computers and Different marketing strategies adopted by HCL to compete with others.
HCL Infosystems how much is fulfilling the customer needs and try to sale the
maximum of personal computer

This dissertation report making was really good learning period for me. I got
opportunity to know the theoretical knowledge related to marketing strategies.
This dissertation report is part of course of PGDBM program, which is set by
AICTE, and it is necessary for every student to under go for dissertation project. This
project report is also made for submission to N.I.M.T. B-School Ghaziabad. Sustains
including in this report are research methodology, analysis of activities, conclusion and
bearing from this project Bibliography is also given in last to know from where
information has been taken to complete this project. I hope this project will serve the
purpose.

ANSHUMAN

2
 Acknowledgement

First of all I thank the alimighty God. He creates everything. Then I am grateful to my
parents for their love and affection, which has been the source of motivation for me
forever.
I owe my gratitude to the entire staff of the NISHKRANT MEDIA PVT. LTD,
FARIDABAD who provided me the necessary and relevant information towards the
completion of my survey report. I thank them for the critical suggestions and the sound
logical and design improvements during the project. Without their timely help it have
been very difficult for me to submit this project well on time.
I am very thankful our college guide for giving me the input and support, without her
guidance the project would not have been completed. I have been benefit a lot of from the
training through criticism and suggestion provided to me by her.
Last, but not the least I am extremely thankful to my friends and other persons for their
timely help and the subject knowledge to make familiar with the working environment
of this project.

ANSHUMAN

3
 TABLE OF CONTENTS

SNO. PARTICULARS PAGE NO.

1. Company Profile
2. Review of Literature
3. Synopsis of Study:
 Objectives of study
 Scope of Study
 Research methodology
• Research Design
• Method of Data Collection
 Limitations
4.. Data Analysis & Interpretation
5. Finding of the Study
6. Conclusions
7. Recommendations & Suggestions
8. Annexure
 Bibliography
 Questionnaire

4
Company Profile

INTRODUCTION

5
HCL Info systems Ltd are one of the pioneers in the Indian IT market, with its origins in
1976. For over quarter of a century, we have developed and implemented solutions for
multiple market segments, across a range of technologies in India. We have been in the
forefront in introducing new technologies and solutions. The highlights of the HCL saga
are summarized below: —

Y E A R 1976

 Foundation of the Company lay.

 Introduces microcomputer-based programmable calculators with wide
acceptance in the scientific / education community.

1977

 Launch of the first microcomputer-based commercial computer with a ROM

-based Basic interpreter.
 Unavailability of programming skills with customer’s results in HCL
developing bespoke applications for their customers.

1978

 Initiation of application development in diverse segments such as textiles, sugar,

paper, cement, transport.

1980

 Formation of Far East Computers Ltd., a pioneer in the Singapore IT market, for

SI (System Integration) solutions.

1981

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  Software Export Division formed at Chennai to support the bespoke application
development needs of Singapore.

1983

 HCL launches an aggressive advertisement campaign with the theme ' even a
typist can operate' to make the usage of computers popular in the SME (Small &
Medium Enterprises) segment. This proposition involved menu-based
applications for the first time, to increase ease of operations. The response to the
advertisement was phenomenal.
 HCL develops special program generators to speed up the development of
applications.

1985

 Bank trade unions allow computerization in banks. However, a computer can only
run one application such as Savings Bank, Current account, and Loans etc.
 HCL sets up core team to develop the required software.
 ALPM (Advanced Ledger Posting Machines). The team uses reusable code to
reduce development efforts and produce more reliable code. ALPM becomes the
largest selling software product in Indian banks.
 HCL designs and launches Unix- based computers and HCL PC clones.
 HCL promotes 3rd party PC applications nationally.

1986

 Zonal offices of banks and general insurance companies adopt computerization.

 Purchase specifications demand the availability of RDBMS products on the

supplied solution (Unify, Oracle). HCL arranges for such products to be ported to

its platform.

 HCL assists customers to migrate from flat-file based systems to RDBMS.

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1991

 HCL enters into a joint venture with Hewlett Packard.

 HP assists HCL to introduce new services: Systems Integration, IT consulting,
packaged support services (basic line, tramline).
 HCL establishes a Response Center for HP products, which is connected to the
HP Response Center in Singapore.
 There is a vertical segment focus on Telecom, Manufacturing and Financial
Services.

1994

 HCL acquires and executes the first offshore project from HCL Thailand.
 HCL sets up core group to define software development methodologies.

1995

 Starts execution of Information System Planning projects.

 Execution projects for Germany and Australia
 Begins Help desk services.

1996

 Sets up the STP (Software Technology Park) at Chennai to execute software

projects for international customers.
 Becomes national integration partner for SAP.

1997

 Kolkata and Noida STPs set up.

 HCL buys back HP stake in HCL Hewlett Packard.

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1998

 Chennai and Combater development facilities get ISO 9001 certification.

1999

 Acquires and sets up fully owned subsidiaries in USA and UK.

 Sets up fully owned subsidiary in Australia.
 HCL ties up with Broad vision as an integration partner.

2000

 Sets up fully owned subsidiary in Australia.

 Chennai and Combater development facilities get SEI Level 4 certification.
 Bags Award for Top PC Vendor in India.
 Becomes the 1st IT Company to be recommended for latest version of ISO 9001:
2000.
 Bags MAIT's Award for Business Excellence.
 Rated as No. 1 IT Group in India.

2001

 Launched Pentium IV PCs at below Rs. 40,000.

 IDC rated HCL Info systems as No. 1 Desktop PC Company of 2001.

2002

 Declared as Top PC Vendor by Dataquest.

 HCL Info systems & Sun Microsystems enter into a Enterprise Distribution
Agreement.
 Realigns businesses, increasing focus on domestic IT, Communications &

Imaging products, solutions & related services.

9
2003

 Became the first vendor to register sales of 50,000 PCs in a quarter.

 First Indian company to be numerous undo in the commercial PC market.

 Enters into partnership with AMD.
 Launched Home PC for Rs. 19,999.
 HCL Info systems' Info Structure Services Division received ISO 9001:2000
certification.
 Launches Infiniti Mobile Desktops on Intel Platform.
 Launched Infiniti PCs, Workstations & Servers on AMD platform.

2004

 Ist announces PC price cut in India, post duty reduction, offers Ezeebee at Rs.
17990.
 IDC India-DQ Customer Satisfaction Audit rates HCL as No. 1 Brand in Desktop
PCs.
 Maintains No. 1 position in the Desktop PC segment for year 2003.
 Enters into partnership with Port Wise to support & distribute security & VPN
solutions in India.
 Partners with Microsoft & Intel to launch Beanstalk Neo PC.
 Becomes the 1st company to cross 1 lac unit milestone in the Indian Desktop PC
market
 Partners with Union Bank to make PCs more affordable, introduces lowest ever
EMI for PC in India.
 Launched RP2 systems to overcome power problem for PC users.
 Registers a market share of 13.7% to become No. 1 Desktop PC company for year
2004.
 Crosses the landmark of $ 1 billion in revenue in just nine months.

10
 CHAIRMAN & CEO'S PROFILE

Ajai Chowdhry
Chairman and CEO, HCL Infosystems Ltd.

An engineer by training, Ajai Chowdhry is one of the six founder members of HCL,
India's premier IT enterprise. HCL, a start-up in 1976, touched Rs.11, 000 crores for the
last 12 months.
Ajai Chowdhry took over the reins of HCL Infosystems, the flagship company of the
group, as President and CEO in 1994. He was appointed the Chairman of HCL
Infosystems in November 1999. Under his stewardship, the company's turnover has
grown to Rs.7783.6 crores in 2004-05 from Rs.400.6 crores in 1994. With employee
strength of over 3600, it has emerged as country's leading information-enabling
powerhouse.
Ajai has been a key force in driving the growth of HCL Infosystems. The credit of setting
up HCL's overseas operations, starting with Singapore in 1980, goes to him. During this
tenure he extensively covered South Asian Markets including Malaysia, Thailand, Hong
Kong, Indonesia, and the People's Republic of China, expanding business operations,
which paved the way towards enhancing HCL's core competencies in bringing the best
international technologies to domestic market.

Driving the thrust on IT, Telecom and Imaging, Ajai perceives the role of his company as
that of enabling information. Credited with providing momentum to key IT phenomena -
within the company as well as in the industry - he has constantly added newer and cutting
edge technology skills to the company's portfolio. Under his leadership, several new
projects have been undertaken in the company that have had a lasting impact - getting
into IT retailing, spearheading the company wide Quality movement, and the very recent
low cost PC initiative and IT for masses are some examples. An absolute stickler for

11
customer focus, he himself spends significant time, personally listening to customers.
Ajai sensed an emerging opportunity early in telecom and imaging category and today
HCL Infosystems is poised to exploit this opportunity to offer a richer bouquet to its
customers.

It is a recognition of his visionary status that Ajai was part of the IT Hardware Task
Force, set up by the Prime Minister of India to give shape to the country's IT strategy.
Ajai has repeatedly championed the cause of improving PC penetration in the country. He
has worked closely with many Government bodies to take IT for masses agenda forward.
Presently he is part of several government committees to take forward the course of IT
and Hardware in India. He was awarded with 'IT Man of the Year' by The Skoch
Consultancy and 'Best IT Man of the Year' by The Foundation of Indian Industry and
Economists. Ajai also addressed CII's flagship hardware event 'India e-Hardware Summit
2004' at Hyderabad as a keynote speaker recently.Ajai has a bachelor's degree in
electronics and communication engineering, and attended the Executive Program at the
School of Business Administration at the University of Michigan, US.Ajai is an avid
reader and is fond of Jazz and the fine arts. He and his wife Gita live in New Delhi.

12
 ABOUT THE PRODUCTS

Business PCs

HCL recommends Microsoft ® Windows ® XP Professional for Business

support.htm

The marketplace is constantly changing in terms of consumers, competition and

strategies to garner market share. Almost all aspects of your business are ever evolving.
The only change over the past few years is that the pace of change has accelerated! In
fact, it is increasing even as you read this.

Information Technology (IT) changes accordingly, perhaps even faster. What is

vital is that the decisions you make today need to have the capacity to address situations
for at least the next three years and the changes that are commercial desktop segment in
India, ahead of competition. Infiniti is the only brand in Indian IT that offers you bound
to occur in that time.

13
 Infiniti is the market leader in Remote Support for Software, an innovative
support mechanism that is end-user friendly and extremely efficient in problem
resolution, saving you time and opportunity.

We, at Infiniti Product Development recognize this need as the key to success for
you, and for us. Infiniti, backed by direct selling and built-to-order, ISO 9001 & ISO
14001 manufacturing, ensures that you get the best available product at the time of
delivery, rather than at the time of order.

This Technology First brand features the latest innovations in Central Processing
Unit (CPU) design, graphics design, display design, I/O advancement and a host of other
technologies that have made Infiniti the number one corporate PC brand in India.

Home PCs HCL recommends Microsoft® Windows® XP Professional

support.htmsupport.htm

The all-new Beanstalk Series, where performance is rivaled only with elegance of
design. You get superior technology and great value for money, all fused into one. It
comes with the super-speed Intel® processor, plus SD RAM and Ultra ATA Hard Disk
that gives it incredible speed.

What's more, it is upgrade friendly and so virtually future-proof. Manufactured at

HCL Info systems' state-of-the-art ISO 9001 certified plant, it is designed to outperform
every other Home Computer you have ever
seen or heard about. And with more than 250 Support providers across the country, its
widespread network ensures excellence in Customer Care. So go ahead and enjoy the
wonder that is HCL Beanstalk, and watch, it will
amaze you for years to come.

14
 It is faster than the fastest home computer. The HCL Beanstalk comes
equipped with the lightening fast Intel® Pentium® 4 processor which means you can
now get mind blowing multimedia performance from your computer. With its high
performance processor, it brings you the internet like no other computer can. So get ready
to experience 3D graphics, virtual reality and realistic audio-video, like never before.

The HCL Beanstalk with Intel® Pentium® 4 processor. the center of your digital
world is designed to meet not just your today's computing requirements, but also the
needs of your future. So bring home the HCL Beanstalk today and stay ahead of the rest
of the world

HCL launches the New Beanstalk Media Center PCs. Digital Home
Entertainment now at the touch of a button with a full feature remote…. Check it out!

The new Toshiba Protégé A100 that lets you enhance your mobile lifestyle with
its attractive Pearl White Design and Intel Centurion mobile technology…. Check it out!

The new range of HCL Home PCs with futuristic technology, amazing
performance at unbelievably attractive prices.

HCL offers Toshiba’s complete range of Mobile Computing Solutions, the

ultimate in style and performance.

The HCL Busy bee range of PCs offers performance, with maximum returns for
your Business. Home | Legal Notice | Contact.

15
 The most affordable’qualityPC’

Finally a quality, branded PC that was affordable. The launch of HCL ezeebee,
revolutionized the Indian PC market. A quality of PC available at just rupees 399/- per
month. The advantage of owning an HCLezeebee is its quality and reliable after sales
service. HCL with its service location all across the state and country offers customers
the comfort of trouble free operation of its system, where ever they may be. All the
component used in HCL ezeebee are selected from the best manufactures in the world
and are tasted tomake sure they work in tropical climates.

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 HCL Busybee

India’s largest installed business PCs

A computer system designed and configured to meet the required business computing
needs. Everything with a value-loaded package that can only be made by HCL.HCL
Busybee is manufactured in HCL’s state-of-art ISO 9001 certified plant. NO wonder,
HCL busybee has emerged as India’s largest installed business PC’s.]

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 Digital music player

Neopod is a digital music player that offers a whole new dimension of usefulness in the
category of personal entertainment device. This sleek, compact device, not only stores
thousands of titles and plays great music;but can also be used as a pocket hard drive for
PC file backup, as a digital photo storage for digital camera, as a voice recorder and as a
digital FM radio.

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 HCL Ezeebee

Notebook computer

Experience mobility. Experience flexibility. Experience performance. With HCL Ezeebee

notebooks. Backed by the reliable HCL technology, these notebooks are designed to
impress. Sharp resolution for high quality images, integrated speakers and superior
graphics make HCL ezeebee notebook the perfect choice to meet all your business and
communication needs. sleek, smart and lightweight. That’s HCL ezeebee notebook for
you.

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 HCL Beepos

Expanding business opportunities

HCL Beepos is a readily installed user-friendly application to provide the end user the
power of POS.This product is designed for ruggedness, security and reliability. Beepos
supports wide range of peripherals CCD Barcode scanner, Laser Barcode scanner,
customer pole display, thermal printer, programmable keyboard, etc.Beepos supports
programmable keyboard which can be customized as per user requirement.

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 GUIDING PRINCIPLES

VISION AND MISSION

VISION STATEMENT

"Together we create the enterprises of tomorrow".

MISSION STATEMENT

"To provide world-class information technology solutions and services to enable

our customers to serve their customers better".

QUALITY POLICY

"We deliver defect-free products, services and solutions to meet the requirements

of our external and internal customers, the first time, every time".

21
 India a Global HCL Super Power

• The Indian computer hardware industry has growing at a rate of over 30 per cent
annually for the past few years and this pace is expected to be maintained until 2005.

• As the first table above shows, domestic manufacture has been increasing, but
so also have imports. The locally manufactured computers cater to low-end applications
while the imported computers continue to facilitate CAD, CAM, CASE, multi-media,
and other high-end applications.

• Indian computer hardware and peripherals industry segments are dominated by

U.S. joint ventures and suppliers. HCL in collaboration with Tatas, Hewlett Packard in
association with HCL Limited, Digital Equipment Corporation with Hinditron Group,
Silicon Graphics with Tatas, (just to mention four major joint ventures) manufacture
computer hardware for the domestic and export markets. Compaq, Silicon Graphics,
and Dell have opened offices to sell their computers in India. Sun Microsystems and
Apple distribute their products through Wipro Information Technology Limited.

• Most business firms in India have not computerised. Many of those who have,
still use outdated products such as dot-matrix printers instead of laser and ink-jet
printers.

• As more and more international companies set up office in India, the demand
for hardware will increase.

• The growing awareness of the case to shed fat in the public sector will call for
more automated operations; this too will generate demand for computers.

The prospects for both exports to, and investment in, this sector are excellent.

we wait for the market to grow to high volumes that justify creating a manufacturing base
in India, or should we just kick-start manufacturing so that prices then come down and
thereby create volumes? The debate has raged on long enough and no consensus seems to

22
be emerging. Rather, things took a turn for the worse with recent years witnessing a
perceptible decline in manufacturing activity. Therefore, when a recent MAIT study,
conducted jointly with Big Five firm Ernst & Young, concluded that the Indian hardware
industry had the potential to reach a size of $62 billion by 2010, it not only raised many
an eyebrow, but derisive laughter from skeptics.

Sample some salient conclusions of the study which paint a rosy future for India
Hardware Inc: By 2010, the Indian hardware industry has the potential to grow to twelve
times its existing market size, with the domestic market accounting for $37 billion and
exports accounting for another $37 billion. The study has identified major export
opportunities in the areas of innovative new devices, contract manufacturing and design
services. The study says that component exports offers an opportunity worth $5 billion,
while that of design and related services in embedded systems and wireless
telecommunication services can bring in another $7 billion by 2010. Further, ambitious
projections have been made in the area of contract manufacturing, which represents a $11
billion opportunity if India succeeds in capturing a share of only 2.2 percent of the global
pie by 2010.

Though the rosy projections look good on paper, is this growth really possible? Sceptics
deride the study as an attempt by the hardware industry to copy its software counterpart,
which has been tom-tomming Nasscom and McKinsey’s projection of $87 billion in
software revenues by 2008. MAIT officials are however quite upbeat. Says Vinay
Deshpande, president of MAIT, “There are four key steps which we need to take to make
India a manufacturing-friendly country. Firstly, market India as a hardware destination
and build a brand akin to software. Making India manufacturing-friendly through
improvements in infrastructure and logistics should follow this.

23
 REVIEW
OF
LITERATURE

MARKETING STRATEGY

“Marketing Strategy is nothing but a combination of decision bearing on a various

24
aspect of marketing mix element.” There are Product, Price, Place, Promotion, Process,
Packaging and Personal. HCL concentrate on all aspects, that’s why HCL has very good
hold on Indian market. It understands the mindset of Indian customer very well because
of it is a India based company. Strategy only then success when it made to according to
customer need and preference.
So an overview of marketing strategies, which HCL uses to continue its way
behind success, is discussed here.

1. For product planning:

[a] HCL take decision their existing product along with future products. This is the
continuous process, which is done by top management of HCL.
[b] Then they research the product by research department. Research & Development
Department.
[c] New product launching and product renovations is an activity which takes place
continuously here.

2. Management Information System

In this step they collect the details about competitor’s product. They saw the
pricing, features, quality, Advertisement, Packaging, and Promotion of those particular
products. It is necessary to have a good Information system to understand the consumer
mind batter.

Market Segmentation

We know that market segmentation means dividing market into distinct group of
buyers with deferent needs characteristic is or behavior. Who might require separate

25
product or marketing mixes?

It refers to large heterogeneous market in to with smaller homogeneous parts in

order to select any one out than in which the company thinks it can satisfy customer more
effectively different product for different segmentation. There are different classes people
are living HCL, like....
1. Lower middle class
2. Middle class family
3. Upper middle class family
4. Higher class family
5. For larger the target is fulfill by the help of advertisement and Promotional
Events.
Now HCL is targeting to those customers who use to see dream about it by
launching its new Computer at just Rs. 9999.

PRICING POLICIES

Price refers to the value of product attributes. Expressed in monetary terms with a
customer plays or is accepted or affords utility. Value is referring to the quantitative

26
aspect product relative to other product. In HCL, pricing policies of work like as under

1. Management Information System First MIS show the price of competitors.

2. Parallel pricing policy

• Bundle, marketing
• Profit margin
They give to Channel Partner/demo center 6-8%, And company gets X% profit. HCL’s
main objective is service rather then profit. No doubt there is profit but pricing policy just
to meet minimum margin for getting competitive advantage against assembler’s market.
Company wants to maximize its profit than unit establishes higher policy its
organization wants to cover the large part of the market than obligation may establish
negligible profit policy. “HCL believes in wealth maximization rather than profit
maximization.”

Sales Promotion
We know those sales promotion short-term incentives to encourage purchase or
sales of product and services. Sales promotion includes

27
 • Consumer Promotion
• Trade Promotion
• Sales Force Promotion

Sales promotion refers to all efforts made by the firm to promote the sales of
products. In HCL for sales promotion gave special offer
• To end-users
• To institution
• To corporate houses

Total expenses HCL use to spend on promotional activities is just 3% of the sale.
Advertising Sales Promotion
(2% of sales) (1% of sales)

Press T.V. Radio out Door

30% 35% 10% 25%

Among all tools of promotion advertisement is given prime importance by HCL.

That can be seen from the above chart that more stress put on the Television Press and
Outdoor media of advertisement.

Made-in-India strategy works for HCL

Even as everyone was all set to bury Indian PC brands, HCL Insys came out with a stellar
performance last year that proved that Indian brands still had the ability to win on home
turf. There’s a lot that other Indian players could learn from HCL Insys’ strategy in PCs

28
and other segments. Gaurav Patra explains what this IT major got right, and analyses
future prospects in the light of shifting trends in the business
Just when the whole PC industry was in the throes of a recession and analysts were
screaming negative growth rates, HCL Infosystems surprised quite a few when it
registered a 27 percent growth rate over the last year. The company gained the No 1 PC
desktop vendor ranking for the year 2001, with a market share of 8.6 percent. In fact,
today it is one of the few Indian brands that continue to hold their own against the MNC
brigade—Zenith’s the only other name that comes to mind. From a company that used to
sell boxes, HCL Insys has now emerged as a leading systems integrator, selling solutions,
while also offering IT services and consulting services.
The HP-Compaq merger could turn out to be an advantage for HCL because one-plus-
one never equals two in this business
It is interesting to trace the transformation of a company that was earlier identified by the
‘hardware’ tag to an ‘end-to-end solutions provider,’ with interests across domains such
as software, networking and consulting. A look at the strategy followed by HCL Insys
throws interesting pointers for the rest of the industry. The number one tag on the PC
front (with the HP-Compaq deal, HCL goes back to No 2 now) has come as a result of
clever marketing strategies, and aggressive expansions. HCL has always been very strong
on the government front. But when things started going bad on other fronts—for instance,
when the metros were showing stagnation rates, HCL Insys went ahead and expanded
aggressively in B&C class cities to boost volumes. In addition, the company initiated
schemes like consumer finance to lure the reluctant PC buyer.

Different strategies for different segments

But the strategy to gain market share in difficult times and reap benefits when the
industry recovers has come at a cost. For instance, industry analysts say that HCL has
given massive discounts in the products business to gain market share. Evidence lies in

29
the fourth quarter (AMJ 2002) performance of the company, where though the products
and related services business contributed 95 percent of sales at Rs 382.94 crore, profits
before interest and tax stood at just Rs 7.24 crore—56 percent of total profits before
interest and tax (PBIT). The profit before interest and tax margins were dismal at 1.9
percent as compared to 4.4 percent during the quarter ended March 2002.
In addition to the PC segment, the company also took several innovative initiatives in
other sectors to boost revenues. Take for instance the strategy of the company in the
notebooks segment. The move to enter newer segments like education and consulting in
the notebooks business has yielded great results. Proof of success lies in the fact that
HCL Insys has already bagged big orders from the Indian School of Business and
PricewaterhouseCoopers. The second part of the notebooks strategy has been to
aggressively woo the SME segment with newer, cost-effective models.
The telecom business has also recorded impressive growth. For instance, the company
bagged telecom equipment orders from IIT Kanpur for 5,000 lines of MD Ericsson
EPBAX and 500 lines of an ADSL solution. Looking at the robust growth from this
segment, the company has set up the India remote support centre for providing support
services to all HCL Infosystems’ customers.
And while there have been doubts on the long term viability of the retail ISP business,
HCL Infinet, the fully-owned subsidiary of HCL Infosystems, is betting big on its
technical expertise to boost revenues. Positive indications can be seen in the fact that the
subsidiary has acquired 30 new corporate clients for VPN implementation.
These new clients come from different verticals such as manufacturing, finance and the
FMCG industry. Company officials are also betting on the VoIP segment, which has
recently been opened up to ISPs for Net telephony, but there is still doubt on whether this
sector will generate enough volumes for any ISP, leave alone HCL Infinet.

To take advantage of the boom in the call centre business, the company has also started a
unit that it terms as ‘call centre consulting’. Under this initiative, the company will help
prospective clients wanting to enter the call centre business with its knowledge base of
hardware and systems integration, and experience in call centre operations itself.

30
 Software services
Though the majority of HCL Insys’ revenues continue to come from hardware sales and
related services, the relatively small software services portion could be a surprise packet
for the future. For instance, though the software services part contributed just 5 percent of
sales, margins have zoomed from 6.5 percent in the quarter ended March 2002, to 29.4

31
percent in the quarter ended June 2002. The company has a good de-risking model
through this segment, and has spread its business over different geographies. Going
forward, the company expects 40 percent of revenues coming from the domestic and
export services, about 30 percent from products and system integration and about 30
percent from software exports.

Other strategies
In line with offering competitive pricing keeping in mind the price-sensitive nature of the
Indian market, HCL Insys has made significant investments in the Professional Services
Organisation (PSO), the Support Services Organisation (SSO) and in its manufacturing
plants at Noida and Pondicherry. The build-up of the services business (both PSO and
SSO) enables HCL Insys to offer complete solutions as well as raise manufacturing
volumes in line with international standards. The increasing focus on integrated
enterprise solutions has also strengthened HCL Infosystems’ SSO’s capabilities in
supporting installation types ranging from single to large, multi-location orders. The
SSO, which comprises of a direct support force of over 800 members, is operational at
150 locations across the country and is the largest such force in the IT business.
One more important arm in HCL Insys’ strategy has been the Frontline division that
markets national and international brands of computer systems (including Toshiba
notebooks) and peripherals within the country. With its extensive network of 800
resellers across 300 cities, the division actively promotes the penetration of PCs in the
home and the small office/home office (SOHO) segments.

HCL drives 'PC IN EVERY HOME' dream with EzeeBee Pride

For those who have been putting off their decision to buy a computer for affordability
reasons, here's some great news. Keeping its commitment to truly bring IT to the masses,
HCL Infosystems, India's premier information enabling and integration company, has

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broken the price barrier yet again, making branded PCs more affordable than ever before.
The company has announced the launch of a new PC EzeeBee Pride that will be available
at a very affordable price of Rs.12,990.

Positioned as 'value for money' range, EzeeBee is the result of the company's intense
efforts, led by the vision of Chairman & CEO Ajai Chowdhry, to make PC an affordable
entity for the masses. With a distribution focus on smaller towns as well as the Home and
SOHO users, this path breaking PC will be sold in all the HCL outlets across the country.
The product comes with the quality and support of HCL, the only Indian IT hardware
company with a turnover in excess of USD 1.38 billion.

To ensure that high quality is maintained even at a low cost, the EzeeBee Pride PC is
designed for high performance. Built to boost productivity and improve response time
EzeeBee Pride PC is powered by the 1Ghz processor. The multimedia and Internet
capable PC comes with the standard one-year warranty has a 30GB hard-disk, 128 MB
RAM, 15" color monitor, CD ROM Drive and is backed by the countrywide support
network. The PC will be ideal for home users and SOHO segments, offering all the
functionalities sought by this segment.

"It is my ultimate dream to see a computer in every Indian home. With EzeeBee, we hope
to empower more and more individuals with the power of computing. We believe that the
true potential of IT can be achieved only through mass IT penetration. In a country like
ours, price is a huge deciding factor and one of the major barriers to achieving it." said
Mr. Ajai Chowdhry, Chairman and CEO, HCL Infosystems Ltd. "We have taken the lead
in finding innovative ways to bring the price down by introducing new technologies and
products that we believe will not only best suit the requirements of the home and SOHO
segment, but also go easy on their pockets,".
The EzeeBee range has been designed and configured for use by value conscience first
time users who want to enhance their IT skills. It can be used by students for educational
purposes, by the entire family from learning to digital entertainment to work at home. It
can even be utilized for increasing efficiency in a small to medium business. Flaunting

33
the trademark good looks of the range, the PCs also come with optional bundles like the
inkjet printer, UPS, speakers and web cams at an additional cost.

The range is manufactured and tested under ISO 9001 and ISO14001 certified processes.
In January'04, HCL Infosystems had launched Ezeebee at sub 15k price point HCL
Infosystems is country's numero uno PC maker and seller.

HCL Infosystems and Union Bank partner to make PCs more

affordable. Lowest ever EMI in India: Rs.499 for HCL Ezeebee

In a country where only 11 out of 1,000 people own a computer, one of the key
influencers is affordability. HCL Infosystems, India's premier information enabling
company, and the Union Bank of India recently entered into a partnership that will make
it extremely easy to fit a personal computer into the monthly family budget. A HCL

34
Ezeebee PC will now be available at an EMI of only Rs 499 per month. This offer is
available on an Ezeebee with Pentium 4 and Intel's Hyper Threading Technology.

Speaking on the occasion, Mr Ajai Chowdhry, Chairman & CEO, HCL Infosystems,
said, "It is our ultimate dream to see a computer in every Indian home. I am confident the
offer introduced today will go a long way in making this endeavour successful. If it is the
cost of acquisition of a personal computer that stops an Indian from owning a computer,
then HCL has taken the responsibility of providing the best financial deal possible,
thereby empowering more and more consumers with the power of computing".

This premium branded PC at Rs 499 per month is targeted at making the PC an

affordable commodity in Indian homes. A quality PC backed by an impressive customer
support available across the country is another step from HCL Infosystems in increasing
PC penetration in the country. A wide reaching multi-media campaign is being released
to inform about this new initiative.

The interest rate on this scheme has been kept to the lowest possible rate that compares to
that of typical consumer goods. This scheme has a host of other models with different
configurations available, thereby giving consumers a wide option to choose from.

Recent research has indicated that PC ownership can help a family in many ways. Prime
reason being the child's education, thus giving the child a diverse learning experience
irrespective of city .HCL Ezeebee can be used by all members of the family, from
learning to digital entertainment to Internet to work at home.

HCL Infosystems recently broke the Rs 15,000 price barrier by introducing the Ezeebee.
HCL Ezeebee has been created specifically to cater to the needs of first time Home PC
buyer. With cutting edge technology and ease of use features, this brand has found wide
acceptance with the consumers across the country.

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HCL partners with Microsoft & Intel to revolutionize digital
entertainment in India
Imagine the ultimate device that caters to all your entertainment needs. Visualize a TV,
DVD, MP3 player, radio, gaming tool, web browser, video recorder all rolled into one.
Envisage having the world of home entertainment at your fingertips. Fantasy? Not if you
experience the revolution that is Beanstalk Neo.

The Beanstalk Neo, launched today by HCL Infosystems, India's premier information
enabling and integration company, promises to change the world of home entertainment

36
for the Indian user. The Beanstalk Neo has been specially developed by HCL
Infosystems, utilizing the latest Microsoft Windows XP Media Center Operating System
and Intel's Hyper Threading technology. This latest product from the HCL stable is
available across the country through the company's channel network.

The Beanstalk Neo is a true convergence product with an unbeatable blend of futuristic
style and pioneering technology. The first thing that sets it apart are the stunning good
looks, enhanced by a sleek finish and a 17 inch flat LCD display system for that superb
cinematic experience. An integrated digital entertainment system which includes a LCD
TV, DVD player, MP3 / CD player with a surround sound system, live radio and
television, wireless and broadband ready, the Neo comes with the convenience of remote
control so that you are not required to learn any controls or interfaces. The HCL
Beanstalk Neo is available at Rs 99,990/-, and comes with a one-year comprehensive on-
site warranty.
Announcing the launch of the Beanstalk Neo, Mr Ajai Chowdhry, Chairman & CEO,
HCL Infosystems Ltd., said, "The Beanstalk Neo, without any exaggeration, will
completely transform digital entertainment for the Indian user. The Beanstalk range, ever
since its advent in 1995, has always brought the best of breed technology to the Indian
consumer and kept him in-step with the latest innovations worldwide. We see a trend
today where the user wants a multi-functional product combined with ease of use.
The Neo has been designed keeping the requirement of today's demanding consumer in
mind. Concisely put, the Neo is not just a new PC, it is a revolution."

Commenting on the announcement, Mr Rajiv Kaul, Managing Director, Microsoft

Corporation Pvt. Ltd, said, "The proliferation of various technology products and
services, has complicated the life of the consumer - and they are demanding simplicity,
ease of use and holistic offerings that just work. The Windows XP Media Center Edition
2004 is a great example of integrating software, hardware and services to create simple
and compelling entertainment experiences that enhance the lives of our users,

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everydayBuilt from the ground up to deliver the picture and sound quality you expect
from a digital entertainment center, the Beanstalk Neo lets you use one unified interface
 Pause and rewind live TV and radio so you never miss a moment
 Record an entire TV series or genre and watch shows at your convenience
 Experience your digital photos, videos, and DVDs with friends and family
 Put your world of music at your fingertips with an amazing jukebox
 Get connected to a world of digital movies, music, and more - at your convenience

The HCL Beanstalk Media Center PC comes with a 17 inch integrated high-resolution,
anti-glare flat LCD monitor, with 1280 x 768 support - 16:9 aspect ratio. Among the
features that make it the ideal, easy to use entertainment powerhouse are a wireless
keyboard and mouse, built-in TV tuner, DVD and CD player/recorder, MP3 capability,
an FM radio, gaming tools, a photo editor and a web browser. The Beanstalk Neo can
also create, edit, store and screen digital home movies and photos.
The Beanstalk Neois equipped with an Intel® Pentium® IV 2.8 GHz with Hyper-
Threading technology, 800 MHz FSB and Windows XP Media Center Edition 2004
operating software, the most advanced OS for PCs in the Home segment.

In addition to its multi-media features, this innovative Beanstalk PC offers the 'dream
pack' with 5 Microsoft games; Microsoft works 7, as well as 100 songs, 5 movies and 10
karaoke.

A STRATEGIC ALLIANCE WITH BULL TO LAUNCH A NEW

RANGE OF SCALABLE ENTERPRISE CLASS SERVERS ON
OPENARCHITECTURE

HCL, India's premier information enabling company, today announced a strategic

alliance with Bull, a leading Europe based company, to launch HCL scalable Enterprise
Class Servers on Open Architecture. The new HCL servers will provide customers the

38
proven capability and mainframe-class reliability of the traditional proprietary RISC
platforms on Open Architecture at a much lower total cost of ownership.

"The biggest challenge at the core of the enterprise has always been to gain the
performance, headroom and reliability of high-end 64-bit computing, without the high
cost and complexity of proprietary RISC architecture." said George Paul, Executive Vice
President - Marketing at HCL "This partnership will allow us to offer our customer a
complete range of solutions for the Core of the Enterprise on Open Architecture and help
them move beyond proprietary RISC platforms."

Today enterprises are looking to break free from the barriers of proprietary RISC
platforms and now with more than 5000 validated applications available on Itanium®
both on windows and linux, enterprises finally have enlarged options.

The partnership will enable HCL to address high-end requirements of its customers for
the core of the enterprise, in areas such as large-scale databases, ERP applications, Data
centres, High Performance Computing requirements of Scientific and Research Segment
etc. It will enable Bull to expand the geographical market reach of its technologies,
establishing its presence through HCL's extensive network of over 170 offices and 300
service centres spread across the country.

The new range is based on Bull's NovaScale® servers, powered by Intel® Itanium® 2
processors and Bull's FAME (Flexible Architecture for Multiple Environments)
technology. Using market-standard building blocks, the FAME architecture represents a
technological breakthrough for high-end, mission-critical servers, delivering significant
improvements in price/performance.

This launch further strengthens HCL's Infiniti Global Line Servers, which has fast
emerged as a preferred brand amongst a cross-section of markets in India including
Manufacturing, Telecom, Finance and Banking, the Government, Defence Forces and
Internet Service Providers.

39
Notably, HCL has shown phenomenal growth in server segment by registering a market
share of 19.6% for calendar year 2005. This launch is yet another demonstration of the
company's strong focus on the Server Business and its commitment towards the Indian
Customers by providing the right technology, at the right time, and at the right price
point.

While in Delhi and commenting on the announcement, Michel Lepert, Executive Vice
President and General Manager of the Products and Systems Division at Bull, said: "India
is a high-growth market with a strong interest in new technologies such as the ones built
into our NovaScale® servers. We are totally committed to supporting HCL, and given the
work that we have already done together to move the partnership forward we are
confident that HCL customers will immediately benefit from very competitive high-end
solutions".

Mr Surendra Arora, Director - Customer Solutions Group, South Asia, Intel said - 'Intel
has worked with the industry over the last six years to develop a rich eco-system of
highly scalable and open standard solutions. We have a large number of OEM's,
operating systems and 5000 applications running Intel® Itanium® processor family-
based platforms. We are now very pleased to collaborate with HCL Infosystems and Bull,
a member of the Itanium(r) Solutions Alliance, to enable the Indian IT customers with
mission critical computing needs to benefit from the outstanding performance, reliability,
scalability and availability delivered by Itanium(r)-based systems.'

To share the benefits enterprises can derive from this union, HCL, Intel & Bull, have
jointly organised exclusive seminars in Delhi, Bangalore & Mumbai for CIOs this week.

Bull NovaScale® servers have gained IT market recognition and won large customers,
both end-user IT organizations and OEMs. They are used notably as data base servers
and application servers as well as in HPC (High Performance Computing) applications. A

40
prime example: NovaScale® servers are the foundation of the largest scientific computer
ever delivered in Europe, which is currently under installation and will be operational by
the end of 2005.

Customer gains

Why would a company opt for RIM, rather than total IMS or even just manage its
infrastructure in-house?
The most obvious reason is the cost advantage, of course. Industry estimates place the
benefits due to cost arbitrage at between 30 and 50 per cent. Nasscom's Mehta draws a
comparison: "For EDS and global giants, it used to be more a game of credit rating
arbitrage. Since EDS had high penetration into many of its customers, it was profitable
for it to take over the IT assets of clients. Now, with RIM players in this space, the credit

41
rating of traditional outsourcers has completely deteriorated. They are no longer
competitive in this space."
Further, according to Forrester, IT budgets have seen no more than 1-2 per cent increase
in the past few years. Thus, CIOs look upon outsourcing as one of the way of stretching
the budget. IT infrastructure is one of the areas where they haven't been able to derive
much benefit and RIM provides them that scope.
Says Priti Rao, vice president and head, Pune Development Center, Infosys
Technologies, "Transparency is a big advantage. The services are easily measurable and
transparent to the customer. There is no question of charging less or more. They see what
they get and, thus, they know what we charge."
The SLAs can now be dramatically improved - because the client is now aware of all the
processes and methodologies, and has the tools to monitor fucntions to drive better SLAs.
Integrated monitoring and management tools and advanced correlation tools RIM offer
can help anticipate a problem before the user brings it up, and resolve the problems in a
faster, structured manner, reducing business losses due to IT downtime.
Unlike in in-house management where employees work only on single shift, RIM
vendors monitor infrastructure performance 24x7x365. This helps do away with the costs
a delay inevitably brings, since the vendors work across different time zones and can fix
problems before the next working day begins.
It also offer customers multiple avenues to reduce costs through headcount reduction by
elimination of under-utilised resources, leveraging operations improvements from
working with multiple customers and cross-pollination of best practices.
Often processes are not well defined when operations are managed in-house. By
outsourcing infrastructure management, clients can make sure that the vendor complies
with the standard processes followed by the industry. For instance, ITIL (IT
Infrastructure Library) and IS07799 for security.
Says Nayyar, "the whole approach towards savings is quite interactive. In the software
industry, the arbitrage cost-savings doesn't impact the rest of the industry, Here, it affects
everything – the network bandwidth, the data centre costs, all costs."

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 COMPETITORS

HP is a company unlike any other. We serve everyone from consumers to small and mid-
sized businesses to enterprises to public sector customers with an extensive portfolio of
market-leading solutions specifically designed to meet the needs of each customer
segment.

Our annual R&D investment of $3.5 billion (USD) fuels the invention of products,
solutions and new technologies. We produce an average of 11 patents a day worldwide.
HP Labs provides a central research function for the company which is focused on
inventing new technologies to improve our customers' lives, change markets and create
business opportunities.

Millions of people around the world use HP technology every day. HP is:

43
 • the largest consumer IT company
• the world's largest SMB IT company
• a leading enterprise IT company

Our strategy is to offer products, services and solutions that are high tech, low cost and
deliver the best customer experience. Our team of 151,000 employees does business in
more than 170 countries. Revenue reached $86.7 billion for the fiscal year that ended
October 31, 2005.

HP has a significant presence in all market we serve

• Consumer — leadership in handhelds, notebooks, printers and digital cameras for

rewarding experiences

• Small and medium business — market-leading products, solutions and services

for simplified ownership

• Enterprise — a full portfolio of leading products and services for building an

Adaptive Enterprise

• Public sector, health & education — experience and alliances for lower costs and
increased efficiencies.

Doing well by doing good

HP is proud of our people, our standards and values, and our deep commitment to global
citizenship. Since our first year in business in 1939, HP has given back to communities
through philanthropic donations of money, equipment and time.

Today, we employ new models of engagement and new business and technology
solutions to help more people around the globe to participate in the world economy via
information technology.

Stanford University classmates Bill Hewlett and Dave Packard founded HP in 1939. The
company's first product, built in a Palo Alto garage, was an audio oscillator—an
electronic test instrument used by sound engineers. One of HP's first customers was Walt
Disney Studios, which purchased eight oscillators to develop and test an innovative
sound system for the movie Fantasia.

44
 Advertising then and now

Pioneering and Passionate: HCL’s Tradition of Reaching Everyone in the

Marketplace
HCL's new accessibility ad campaign focuses on what people can do, not what they can’t.
In one ad, a Deaf man “hears” the demands of his employees. In another, a blind woman
“sees” changes in the marketplace.

These ads continue HCL’s legacy of award-winning advertising, which represents

everyone in the marketplace — whether Curtis Mayfield, a stroke victim using voice-
recognition technology (1997); Joyce Massingill, a Black aerospace engineer (1969); or
Carl Berman and Mitch Goldstone, a gay couple who own a photo shop (1998).

Passionate about diversity

45
Today, representing the diversity of the marketplace is a strategic mission. "We're
passionate and almost maniacal in this regard," says Lisa Baird, vice president,
Worldwide Integrated Marketing Communications.

To increase its business, HCL is focusing on newer segments, such as medium businesses
and constituency groups. How do you get the attention of constituency groups? You start
by representing them in your advertising.

"When people can see themselves in our advertising," Lisa adds, "they can connect with
us." Casting ads and conveying messages must hit the right note, however, to be
effective. To ensure positive portrayal of constituency groups, HCL recently developed
casting guidelines for its ad agencies worldwide.

HCL also sponsors key community events, such as La Familia Technology Week during
Hispanic Heritage Month, Black Family Technology Awareness Week during African
American History Month, and advertising in Gay, Lesbian, Bisexual and Transgender
(GLBT) journals during Gay Pride Month.

"Advertising drives people to learn more," Lisa says. "For us, that means creating interest
in our solutions, products and leadership message."

Recognizing subtle differences

When it comes to marketing to constituency-owned businesses such as women, Asian,

Black, Hispanic and Native American businesses, HCL applies the same go-to-market
strategies as it does for any business — reaching out through business partners,
employing a 1-800 number or HCL.com.

Within a specific constituency market, HCL first identifies which businesses make the
most sense to connect with. Then, the HCL determines the most efficient way to reach
each of them — whether through individualized marketing or a creative combination of
HCL's go-to-market strategies.

HCL business partners then help in generating demand and selling HCL solutions to
businesses. For example, Esource Systems and Integration, Inc., an HCL-authorized
business partner based in Huntersville, North Carolina, sells HCL solutions which
contain HCL software and hardware products. This business partner provides technology
solutions for government agencies and commercial customers to solve business problems.

46
HCL also enters the business community through professional associations and
organizations. Such groups generate interest in HCL and may even help HCL identify
new business partners. By sponsoring and participating with them, HCL is able to
communicate its message of value to the member businesses.

"We're saying, in effect, to our constituency customers, 'We know you're out there and
we want to work with you to make your businesses more profitable and productive,'" says
Rai Cockfield, vice president, Market Development. His group is responsible for
marketing to businesses owned by women, Asians, Blacks, Hispanics and Native
Americans.

While focusing on small- and medium-sized businesses, marketing to constituencies is all

about building relationships. By working with business partners and owners, HCL
demonstrates it speaks a community's language and recognizes its culture. HCL then
closes the equation by helping businesses understand how they can reach their potential.

Finding out each segment's needs requires a willingness to break with old assumptions
and "go places where you don't usually go." While acknowledging that everyone in a
segment is not the same, it's necessary to recognize "subtle differences" that exist
between constituencies — such as one being more "relationship-oriented" or "techno-
savvy."

Even so, Rai maintains all people prior to a purchase ask, "Does this product or service
meet my need? Is the company reputable? And is the price reasonable?" Today, he adds a
more pressing question, "Are you reaching me in the way that I see myself?'

"That's what endears a person to a company and a product," he says.

Opening the aperture

Imagine the ability to access information anywhere — computing without limits. That's
what HCL researchers call "pervasive computing and accessibility." They also have
redefined accessibility to mean “access to information — for everyone," says Jani Byrne,
formerly the worldwide business director, Accessibility, HCL Research.

HCL researchers are taking that notion of accessibility a step further: Imagine the ability
to access information anywhere — computing without limits. That's what HCL
researchers call "pervasive computing and accessibility."

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In a world of computing without a limits, a blind person could go to the refrigerator to
cook food. Radio-frequency tags could instruct people how to prepare that meal, step-by-
step. A teenager could learn to cook this way, or get help with homework.

The mission of HCL's six Worldwide Accessibility Centers, launched in 2000, is to

ensure all of HCL's 3,000 plus products are accessible, and to bring the notion of “access
to everyone irrespective of ability or disability” to businesses around the world.

While first focused on special needs, the Centers boldly decided to "open the aperture,"
Jani says, to bring information technology to the masses, especially individuals with
temporary disabilities, the aging community, as well as people with traditional forms of
disability, such as hearing, vision, cognitive, mobility, and speech.

The Centers now target businesses and government agencies with this broader, more
inclusive definition of accessibility. Developing technologies accessible by everyone —
whether disabled or temporarily abled — solves many accessibility issues across the
board. For example, researchers realized that the general public always enjoys inventions
designed for people with disabilities — such as close-captioned TV, sidewalk curb cuts
and wide doorways.

"If you've tried to hear sports scores on a TV in a noisy restaurant, you've experienced the
benefits of closed captioning," says Jani.

Another target is the aging global population. In the United State alone, the fastest
growing segment of our society is people over 85. Furthermore, throughout our life span,
each one of us will experience some form of disability...whether it's working with
dyslexia during early educational years or facing cognitive impairment as we grow older.

Thanks to federal legislation, HCL is well-positioned: Producers of information

technology who make products accessible will be favored for bids with the government
— a longtime HCL customer — over those who do not. Even if a competitor offers a
lower bid, the government must contract the producer of accessible products.

"This significant marketing strategy is central to HCL's leadership in the marketplace,”

explains Jani. "Brand HCL is in the game and with the power of HCL Research, we're in
a leadership position."

HCL is sharing its vision of an accessible future through a robust public relations
strategy, ads and events which have already touched 31 million people. A multimedia
experience depicting this future was launched at California University at Northridge
(CSUN) last year and so well-received that the Governor's Office asked that it be featured
at a post-Oscar event.

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"At HCL, we proudly believe in the technology leadership of our company, as evidenced
by our unsurpassed patent activity for the past 10 years,” says Jani. "Now we're leveling
the playing field to make information accessible to everyone."

Corporate Security Mission Strategy

Security is a hot topic. It grabs the headlines. Lots of market research has been done and
there are many views of the information security market, yet by any measure the market
is poised for substantial growth. The information security opportunity is projected by
IDC to grow from $4.5b in 1996 to $13.5b in 2000, with a 31% CAGR.

Security is the enabler to e-business. HCL, along with its business partners has
security solutions to help companies conduct business securely. HCL is serious
about security and has a strategy to create a mindshare that HCL means I/T
security. HCL has decades of experience designing and implementing security
systems around the world. Our customers want their business systems to be
secure. They want products and services based on open standards. They want an
effective security management system and they want access to experienced
professionals for advice and assistance in implementing security products and
services.
Currently, no company can claim the depth and breadth of security offerings that
HCL can, making security one of the biggest differentiators for the HCL brand.
Many of these focus areas, because they are "for the greater good" of HCL and
not justifiable from within one division's budget alone, suffered significant budget
cuts in 1997-1998. This adversely impacted our ability to capture mind and
market share as competitors have strengthened their positions by filling out their
own security value nets through partnerships, mergers and acquisitions. The

49
SecureWay brand pulls the many aspects of security within the HCL company
together. Current work underway to define security suites will further enable us to
compete in this space.
HCL offers the industry's most extensive and comprehensive portfolio of security
products, solutions and services under the umbrella of the SecureWay brand. The
offerings come from all the divisions within HCL. The SecureWay brand is
currently the security rallying point for go-to-market execution with work
underway to redefine the brand and create a series of security suites.
End to end security covers access from the end users desktop to backend systems.
To get there you often go through other networks, the Internet, servers etc. A
security breakage can occur at any point. Security is only as strong as your
weakest link, that is why we believe it is important to address all aspects of
computer security and why HCL is well positioned to be a leader in this area.
Because security is so comprehensive and our customers are not security experts
we must offer solutions that are understandable, usable and useful .. or they won't
use them. Our customers expect HCL to provide leadership technologies to help
make them leaders in their field.
Security drives significant revenue and profit for HCL throughout the strategic
horizon. Revenue is generated through uniquely identifiable security offerings
(direct) and through products whose sale is contingent on other HCL security
offerings (indirect).
Our strategy provides for this by grouping our offerings by I/T Security
Consulting/Services, Technologies and Products and Solutions.
Consulting and Services : Our worldwide I/T security consulting practice helps
customers determine exactly what their security risks are...and then designs a
security program to cover them using proven methodology that incorporates both
business and technology requirements.
HCL Security Services has the experience and expertise that can dramatically
reduce risk and exposure in today's interconnected world. There was a recent
announcement in March that provides a series of security services under e-
business.
Technologies: Technology is key to making e-business real. Many new
technologies have been invented to secure e-business and make it safe. Our
research labs develop technology that has been awarded the most U.S. patents of
any company for five years running with a worldwide portfolio of more than
30,000 patents, 100 of those are in security.
Products: Award winning research is only part of the puzzle, however. It is
equally important to turn the best of this technology into products and solutions to
help our customers compete more effectively in a fast-changing world. HCL has
set the pace in this regard, offering the broadest range of security solutions
available from any vendor in the industry with continuous focus on simplifying
these solutions for our customers use. Unlike many other systems where security
is an "add on", security is integrated into the heart of HCL's hardware and
software products. Our software features specialized capabilities designed right
into our operating systems, and network and database management programs.
Other tools include: Global Sign On, LDAP Directory, SmartCards, Firewall,

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Virtual Private Network technology all part of eNetwork, built-in security features
in Lotus Notes and Tivoli management tools making security easy to administer.
Solutions: Our security strategy is built on a strong foundation. It begins with
security imbedded into our operating systems, hardware, software servers,
middleware and clients, so system security can't be circumvented. It continues to
the next layer of network security addressing administration, delivery and access
of information across networked environments. And thirdly our strategy
encompasses commerce applications or transactions involving secure credit card
transactions, integrating with "middleware" applications and third party software.
All three of these layers need to deal with the issues of authentication, data
integrity, access control and non-repudiation offering our customer secure
solutions. The list is long and impressive. When coupled with HCL I/T security
consulting and the range of services provided as part of our SecureWay brand
offerings, these tools provide the foundation for securing our customers
information systems and networks.
Enabling I/T security requires adherence to international standards - - standards
reached not just through government imposition, but through global agreement.
HCL fully supports the delivery of open standards. We all want to operate in a
world in which everybody's software runs on everybody's hardware over
everybody's network. Our strategy addresses working with governments around
the world to support an unrestricted marketplace for security and encryption
products that integrate globally.
We provide security technology and contribute intellectual expertise to many
standards groups such as Open Group, W3C, ISO and many other national and
regional standards bodies around the world. Our strategy is to lead in driving
secure Internet-based computing by adopting, developing and promoting
standards such as a PKIX reference implementation of the Internet Engineering
Task Force (IETF) Public-Key Infrastructure (PKIX) which will promote a
standard way to secure any and all applications with digital certificates. We lead
the creation of the Key Recovery Alliance whose goal is to expedite the use of
strong encryption. And have contributed to many standards such as SET, IPSEC,
Open Card, and Gold Standard to mention a few.
To manage the corporate security within HCL, a security management system has
been put in place. It is a two-pronged approach that combines the customer-driven
insights of top division level managers who view security as an important
differentiator which will drive more revenue and profit for their offerings with the
cross-HCL focus of senior corporate level managers who plan HCL's future. On
one side is the Security Management Team (SMT) acts as an Investment Review
Board for security, made up of the top executives from our platform, software and
services divisions. This group meets quarterly to steer our tactical and strategic
security investments as a corporation in order to focus our investments and
optimize the security portfolio. On the other side is the CEC level Security
Council which meets 3-5 weeks after the SMT meets to review its'
recommendations and provide high level guidance.
In 1998-1999, the SMT's charter is to maximize the HCL value proposition as it
relates to security in order to capture our rightful share of the multi-billion dollar

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opportunity identified for security (approaching $13.5B by the year 2000), and to
ensure that security remains a key differentiator for e-business. The SMT has
committed to a contract with the HCL corporation that in return for investment
dollars, specific quantifiable results will be realized. It will drive HCL's strategic
interests irrespective of local measurement issues, ensure coherent investments
across HCL, and promote HCL-wide interests in partnerships, standards, and
policy.

SYNOPSIS OF STUDY

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 RESEARCH OBJECTIVE

The purpose of research is to discover answers to question through the application of

scientific procedure. The main aim of research is to find out the truth which is hidden and
which has not been discovered as yet. Though each research study has its own specific
purpose, we may think of research objectives as falling into a number of following broad
groupings:

1. To gain familiarity with a phenomenon or to achieve new insight into it

(studies with this object in view are termed as exploratory or formulative
research studies).

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2. To portray accurately the characteristics of a particular individual, situation or
a group (studies with this object in view are known as descriptive research
studies)
3. To determine the frequency with which something occurs or with which it is
associated with something else(studies with this object in view are known as
diagnostic research studies)

RESEARCH METHODOLOGY

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The main objective of this project is to study the existing system of Consumer behavior
and sale promotion in HCL of its concepts and implementation, and in the process to
consider any possible changes or improvements in the system.

The objective is also to find out the reactions of both the assessors and assesses of
Consumer behavior and sale promotion as to their satisfaction or otherwise of the existing
system and their reaction to any changes in their performance appraisal system,
especially about the latest method i.e. 3600 Appraisal method. Moreover, instead of
yearly appraisal they would like their Appraisal to be done more frequently as to twice in
a year.

The research involved data collection techniques:

• Primary Sources
• Secondary sources

PRIMARY SOURCES:

Primary data is the data which is collected for the first time. It is collected from the
source of origin. For primary data collection questionnaire was framed considering
certain factors like manpower planning, recruitment sources, selection methods etc. the
objectives of the study was also kept in mind. A copy of the questionnaire is also attached
in the Annexure.
Questionnaire method is being followed and was preferred over interview method
because:

• It is more economical
• This method can cover wider areas
• This method is original and therefore very reliable.
• Respondents feel more comfortable while answering the questions asked.
SECONDARY SOURCES:

The secondary data are those high are already in existence and which have been
collected, for some other purpose than the answering of the questions in hand. The
secondary data collection involved desk study, which was carried out to obtain

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background information about the sample companies. The main sources of information
were company reports, pamphlets, and magazine and personnel department.

Research Design
A research design is thse arrangement of condition s for collection and analysis of
data in manner that aims to combined relevance to the research to the research
purpose with economy in procedure.
As such the design includes an outline of what researcher will do
from writing the hypothesis and its operational implication to the final analysis of data.
More explicitly, the design decisions happen to be in respect of:

• What is the study about?

• Why is the study being made?
• Where will the study be carried out?
• What type of data is required data be found?
• Where can the required data are found?
• What periods of time will the study includes?
• What will be the sample design?
• What techniques of data collection will be used?
• How will the data be analyzed?
• In what style will the report be prepared?

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 COLLECTION OF DATA

It dealing with any real life problem it is often found that data at hand are inadequate and
hence, it becomes necessary to collect data that are appropriate. There are several ways of
collecting the appropriate data which differ considerably in context of money costs, time
and other resources at the disposal of the researcher.

Primary data:-

Primary data can be collected either through experiment or through survey. If the
researcher conducts an experiment, he observes some quantitative measurements, or the
data, with the help of which he examines the truth contained in his hypothesis, But in the
case of survey, data can be collected by any one or more of following ways.

(i) By observation:
(ii) Through personal interview:
(iii) Through telephone interview.
(iv) By questionnaires:
(v) Through schedules:
(vi) Other method:

a) warranty card
b) mechanical devices
c) Projective techniques

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 d) Depth interview.

Secondary data:-

Secondary data means data that are already available i.e., they refer to the data which
have already been collected and analyzed by someone else. when the researcher utilizes
secondary data, then he has to look into various sources from where he can obtain them.

Secondary data may either be published data or unpublished data. Usually published data
are available in (a) various publication of central, state are local governments, (b)
technical and trade journals (d) books, magazines, and newspaper. (e) Reports and
publications of various associations connected with business and industry, bank stock
exchange (g) Public record, and statistics, historical documents, and other sources of
published information like website of industry or company.

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 PROBLEMS AND LIMITATION
In my project work, I found certain problem ;

• High costs of computers.

• Lots of customers are using assembled computers.
• It is very difficult for customers to choose a good brand because lots of
branded computers like Compaq; IBM, Wipro, Samsung, and HP etc. are
there.
• People of the government employees not showing the proper interest.
• Time constraints was major problem with employees to participate in the
demonstration
• At some places electricity problem was also there so that proper
demonstration was absent.
• Attractive package was not there.
• School College were closed.
• Some time ,I faced the location problem.
• Customer don’t want to say address.

DATA ANALYSIS

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 &

INTERPRETATION

Data Analysis

There are many situations in every day life where the researcher is interested in
presenting certain characteristics of data without using complex mathematical
calculations. This type of presentation can be done by means of graphs and diagrams. A
common man generally dislikes numerical statements and have preferences and love for
beautiful pictures.

Under my Graphical presentation I have written finding in every question. So finding is

not given in other places.

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I have made a questionnaire having 19 question and I have include various kinds of
people under my research. There were 200 sample size, due to lack of time.

Some of the people refuse to tick on the income group. So I was suffering from some
problem.

At last I have given some space to know our respondent suggestion or comment of HCL
but some of the respondent refused to write any thing.

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 FINDING

(1). Do you have computer?

YES NO
46 154
23% 77%

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 77%
80%

60%

40% 23%

20%

0%
NO
YES

Conclusion:- I found that, there was a loge potential customer they want to purchase
computer systems.

There was some serious customer. Also they want to purchase computer recently.

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(2). If yes than state the brand.

HCL Compaq & HP IBM Assemble Others

9 8 3 12 14
19.6% 17.4% 6.5% 26% 30.4%

35.00%
30.40%
30.00% 26%
25.00%
19.60%
20.00% 17.70%
15.00%
10.00% 6.50%
5.00%
0.00%
HCL Compge IBM Assemble
others
HP

Conclusion:- This shows that, there is most of customer go for assemble computer due to
cheap.

Compaq and hp is the strong competitor also.

(3). If no, that state the brand willing to purchase

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HCL Other

187 13

93.5% 6.5%

93.50%
100.00%

80.00%

60.00%

40.00%
6.50%
20.00%

0.00%
HCL Others

Conclusion:- There is strong potential customer.

Marcel movement towards HCL.

More people want to purchase HCL PCS.

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(4) .Are you computer liter ate?

YES NO

182 18
91% 9%

91%
100%

80%

60%

40%
9%
20%

0%
Yes No

Conclusion:- I got there is most of people are computer liter ate and they need computer.

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 RECOMMENDATION
&

SUGGESTION

SUGGESTIONS

1. HCL is not giving advertisement of its product frequently in magazines news

paper and Television channels etc. advertising should be frequently to get
remembered the name of HCL by customer.

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2. Relationship between the customer and company is the base of growth. Company
should maintain better relationship with its big customer as institutions, corporate,
schools, colleges and end uses also because good relationship is always helpful in
growth of sales. Company should send cards and invitation to the customer time
to time or on certain occasion.

3. Most of people know that HCL only deals in desktop PC’s and servers whereas
only few knows that HCL also provides software development, networking,
internet services, facility management and High End solution. So work can be
done on it.

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 CONCLUSION

CONCLUSION
HCL is a marketing leader in the field of home PCs. It is number one company
from last two year and it hope it will continue in future but to sustain this leader ship
company have to improve its advertising policies. HCL can get much more market share
in home PCs by increasing expenditure on advertising.

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 Most of the people officials associate HCL with hardware products and vary few
know that HCL also provide IT solutions and software services too. They believe that
HCL is typically a hardware firm.

Undoubtedly HCL is leader in after sales services .As well as HCL is a leader in
hardware products but to sustain its leadership and cope up with the intensify competition
it has to improve in other field too.quality and technology are name few. Corporate image
is good of HCL as compare to Compaq and HCL.

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 ANNEXTURE

BIBLIOGRAPHY

 www.google.com

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 www.msnsearch.com
 www.yahoosearch.com
 Research methodology- C.R Kothary
 Pitch (A marketing & media magazine)

Websites

• www.hclinfosystems.com

• www.hclstore.com
• www.hcl.in

Questionnaire

HCL INFOSYSTEMS

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NAME …………………………………..AGE ……………………….

DESIGNATION ……………………….. LOCATION ………………….

ADDRESS ………………………………………………………………

MOBILE NO ……………………………….

Annual income:

(a) <100000 (b)< 200000 (c) < 300000 (d) >300000

1. Do you have a computer?

(a)Yes (b) No

2. If yes, then state the brand …………………………..

3. If no, then state the brand willing to purchase ………….
4. Are you computer literate?

(a) Yes (b) No

5. Have you done any computer course?

(a) Yes ( b)No

6. While purchasing computer, which factor will you consider?

(a) price (b) Quality (c) Brand name

(d) Technology (e) After sale /service

7. How will you prefer to purchase?

(a) Cash (b) Through financial scheme.

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8. Which one is more users friendly?

(a) Computer system (b) Leaptop

9. Do you have any further plan to purchase leaptop in near future?

(a) Yes (b) No

10. What is the purpose of purchasing leaptop?

(a) Personal use (b) Office use

(c) Study (d) Entertainment.

11. Do you know that HCL have I – pods digital cameras and digital

Media player?

(a) Yes (b)No

12. What do you suggest to increase market share of HCL product.

(a) Advertisement ( b) Attractive package

(c) sales promotion (d)Finance

13. Do you know about HCL financial scheme?

(a) Yes (b) No

14. Do you think, leaptop is more costly?

(a) Yes (b)No

15. Do you think, leaptop is very useful device?

(a)Yes (b)No

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16. Do you think, every student should have leaptop /PC?

(a) Yes (b) No

17. Are you aware, that HCL’s leaptop range starts from 25000/-?

(a) Yes (b) No

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