HCLERS Presented by Anup Dutta Agenda HCLERS Engineering

HCL-ERS Presented by -Anup Dutta

Agenda • HCL-ERS Engineering to be HCL’s growth driver • HCL-ERS with respect to Indian and Global ESPs • HCL-ERS FY’ 17 strategic vision • About HCL-ERS world • HCL-ERS geo wise demand trend Copyright © 2014 HCL Technologies Limited | www. hcltech. com 2

Engineering R&D to be HCL Tech’s growth driver Copyright © 2014 HCL Technologies Limited

Engineering R&D to be HCL Tech’s growth driver 36 years of Complex Engineering Experience 300+ Global Customers 100+ ODCs and 22+ Customer specific labs 1250+ Patents filed , 20+ EOOTB solutions 55 of Top 100 Global R&D companies as customers Market share of 36% among Top 4 IOPs. Lead by Doubled the Revenues in the past 3 years $200 m over the next competitor Infrastructure 31. 5% Custom Apps 29. 2% EAS 17. 7% Towards a $1 B run rate OND’ 14 – $273 M Copyright © 2014 HCL Technologies Limited | www. hcltech. com BPO 4. 3% ERS 17. 3% Largest Engineering Services Team Globally 20, 000+ Engineers Largest ESP from India 6 th Largest Globally (In terms of revenue)

ERS with respect to Indian and Global ESPs Copyright © 2014 HCL Technologies Limited

HCL ERS has been the Largest Indian ESP for over three years now Tier-I Indian ESPs Revenues in M$ for JAS-14 and OND-14 quarters 300. 0 250. 0 HCL Technologies has the highest focus on ‘Engineering Services’ among the Top-4 Indian IT Companies Engineering Services Revenues as a % of corporate revenues in OND 14 273 245 0. 0% 185 200. 0 177 172 10. 0% HCL Tech. 176 JAS 14 150. 0 OND 14 100. 0 5. 0% 75 75 20. 0% 18. 30% Wipro TCS 15. 0% 9. 80% 4. 50% 50. 0 Infosys 0. 0 HCL ERS TCS-EIS 3. 40% Wipro-R&D Infosys-PES HCL ERS overtook Wipro R&D biz. in JAS-11 HCL ERS with 20, 000+ engineering resources quarter, since then has retained the Indian is the Largest Engineering Service Provider ESP Leadership Globally Tier-I Engineering Service Providers (ESPs) consist of following players & segments: HCL Tech (Engineering and R&D Services); TCS (Engineering and Industrial Services); Wipro (R&D Business) and Infosys (Product Engineering Services) Source: Public disclosures - investor relations Copyright © 2014 HCL Technologies Limited | www. hcltech. com External

HCL ERS has consistently outperformed the Tier-I ESPs market 3 Year- Quarterly ESO Revenue Tracker HCL ERS revenues reached $273 M in OND-14 from the base of $184 M in JAS-11 Tier-I combined revenues reached $701 M in OND-14 from the base of $550 M in JAS-11 Tier-I combined revenues consist of following players & segments: HCL Tech (Engineering and R&D Services); TCS (Engineering and Industrial Services); Wipro (R&D Business) and Infosys (Product Engineering Services) *Base of this analysis has been taken as the JAS 2012 quarter HCL ERS has a market share of 38. 9% in OND-14, up 270 bps wrt AMJ-14 quarter Source: Public disclosures - investor relations Copyright © 2014 HCL Technologies Limited | www. hcltech. com HCL ERS captures an incremental market share (between JAS-11 and OND-14) of over 59% External

Top 10 Indian ESPs market grew by 10% in FY 14, with HCL leading the list by over 200 M Indian ESP Landscape: FY 14 revenues, annual growth HCL ERS 881* + 7. 3% Wipro-PES 676 TCS-EIS 649 Global ESP, Only Engineering Service/outsourced R&D Rev. Altran-R&D + 1% Alten-ETC +16% Akka Tata Technologies 392 +5. 3% Bertrandt Infotech 381 + 10% AF +12. 5% HCL-ERS Infosys-PES 308 L&T TS* 279 Persistent -PE 229 + 30% + 13% Tata Elxsi - SD&S 124 + 21% KPIT Cummins - ES 115 + 13% HCL ERS among Tier-I (TCS, Wipro, Infosys) FY 14: 35. 5% *Data based on public disclosures, may differ from internal ERS Copyright © 2014 HCL Technologies Limited | www. hcltech. com 1, 584 1, 208 1, 146 1, 091 940 881 +9% +8% -1% +10% +24% +7. 3% IAV 773 +10% EDAG 745 +56% Wipro 676 +1% Assystem 658 +2% Major Acquisitions in FY 14: • AF AB acquiring Epsilon (Sweden) • EDAG and Rucker merged • Around 6 minor acquisition by Alten

HCL-ERS FY’ 17 strategic vision Copyright © 2014 HCL Technologies Limited | www. hcltech.

HCL-ERS FY’ 17 Strategic Vision $ 2 B in Revenues Retain India ESP Leadership To be among Top 3 Globally ERS Organic FY 17 Plan Focused Account Growth Top Tier Accounts 494 § 4 Mega (100 M+) Accounts § 8 Large (50 M+) Accounts § 16 Hi. Pot (20 M+) Accounts 859 Mega 4 Accounts 1, 220 Large 8 Accounts 494 Strategic Focus Areas 176 2. 0/ Helicopter Landing § Japan § Europe 1, 429 Others 361 200 Geo Expansion 1, 396 Hi. Pot 16 Accts 365 1, 090 New Service Lines § PTS § Mechanical § Io. T/M 2 M 1, 429 1, 205 North America - Organic JP 1, 090 115 EU 225 Japan 636 Micro-verticals Europe 939 Embedded § Energy, Oil & Gas, TSPs § Auto, Industrial 1, 129 SEG 636 303 190 75 M&A M 2 M § FY 17 Target : $ 545 M § Into EU + Auto + Mechanical 0 Copyright © 2014 HCL Technologies Limited | www. hcltech. com $200 M 300 Product Testing Services $400 M $600 M $800 M 1, 329 Mech. CSO 1, 429 XRX Mechanical $1 B $1, 2 B $1. 4 B

About HCL-ERS World! Copyright © 2014 HCL Technologies Limited | www. hcltech. com 11

HCL-ERS world Copyright © 2014 HCL Technologies Limited | www. hcltech. com

HCL – ERS Global delivery Centers Qingdao China (89) Beijing China (98) Legend: ERS

Great Engineered Products are about Phenomenal Experiences build great brands and great organizations 9 million phones sold in 3 days 200+ million i. OS 7 activations i $150 B revenue for Apple, which is more than the total revenue added for the past 12 yr For the first time, so many great technologies, ideas and processes had been assembled in one device, iterated until they squeak, and made accessible to normal human beings Launched in 2001, 65% of the hybrid cars in the US today are Prius Just in the US, it has saved $10 B in gas While most automakers are still catching up to develop their own gasolineelectric hybrid technologies, Toyota is about to release its third generation of the Prius. Copyright © 2014 HCL Technologies Limited | www. hcltech. com By recreating the face to face experience, Cisco’s Tele-presence created tremendous value by saving on travel Organizations the world over are experiencing the transformational impact of faster decision making, stronger working relationships, cost control and improved productivity delivered by Cisco Tele. Presence The Boeing 787 Dreamliner has an order backlog of $180 B, equivalent to 6 years of commercial aviation revenue of Boeing The key to the exceptional performance of the 787 Dreamliner is its suite of new technologies and its revolutionary design.

What do we do to engineer great products ? As a complementary engineering services partner to R&D divisions of Global Technology companies, we focus on : …Accelerated Product Development …delivered at an incredible Value …enabled by the latest Technologies HCL ERS is the largest global engineering services team with over 18, 500 engineers working for 300 + customers across 31 countries. Copyright © 2014 HCL Technologies Limited | www. hcltech. com

The New disruptive technologies are impacting customers, across industries Internet of Things, Convergence M 2 M Technologies Automotive| Industrial | Energy/Utility| Health | Retail • Raymond James research: The number of Internetdevices surpassed humans in 2011, & by 2020, Internetdevices are expected to number between 26 -50 B • Cisco estimates that business already are generating $613 B of profits due to connections of devices to internet, which is only half the true potential Functionality| Features| Hardware| Software| Platform • Priming of underlying digital features such as voice, texts, video, pictures, broadcasts, presentation, streaming media, global connectivity and personalized services Engineering Analytics platforms| Cloud Adoption| Distributed Computing • NASSCOM estimates total Engineering Analytics industry spending: 2014: $ 12. 6 B 2017: $ 26 B CAGR: 16% • Personation in consumer industries; predictive component failure in Aero; improving efficiency & safety in Industrial are few EA applications Copyright © 2014 HCL Technologies Limited | www. hcltech. com • Morgan Stanley estimates the Global 2013 shipment of Smartphones + Tablets (growing annually at 30%) at 4 X the shipments of Desktop + Laptop PC (declining at 15%) Digital / SMAC e/m Commerce | Mobility | Data Analytics | Cloud | Social • IDC predicts that over 85% Incremental IT/technology spend of corporates between 2014 & 2020 to be influenced by the SMAC technologies IDC prediction, 2017 spend • SMAC: $944 B (CAGR: 15%) • Cloud: $ 195 B (CAGR: 25%) • Analytics: $ 30 B (CAGR: 30%) • Traditional IT: $ 1. 54 T (CAGR: 2%)

Large and innovative deals – 1/2 Looking for customer’s stress point, and opportunities for Large deals (Carve outs) R&D Transformation for Legacy Products • ALU technology migration to 4 G, 5 G, LTE. 2 G/3 G is legacy • End-to-end sustenance & support by HCL • Rebadging of ~2, 100 ALU employees. Multi location • Biz model - Carve out, Helicopter Landing Looking for investment led opportunities in Innovation, NPD & Time-to-Market Brilliance Product line Key Highlights End to end product development : First • complete NPD managed by Xerox (w/o Fuji) and HCL • Accelerated NPI. Time to market was 18 months, 50% faster than conventional duration • R&D cost Optimized: Multi layered innovation driven project, R&D cost reduced by 30%. • Emerging Market focus : Ground up design targeting the new emerging markets for customers Copyright © 2014 HCL Technologies Limited | www. hcltech. com

Large and innovative deals – 2/2 Looking for customer’s stress point, and opportunities for Large deals (Carve outs) End to end product engineering services for legacy product lines • HCL took over Clients products and rebadged 370+ resources of R&D team across US, UK, China and India • Complete product engineering & support ownership for product worth $300 million in annual revenues. • B 2 B product suite consisting of 12 varied Products with functional coverage across ERP, Financial Products, CRM & HCM • Responsible for Research, Engineering, QA, Localization, Tech Pubs , Consumer & Enterprise Tech Support with shared Product Management. Carve out of Ericsson’s Milan development center • 136 engineers with deep experience in microwave and mobile backhaul • Milan will be a key delivery center for the Ericsson business going forward and expertise we can leverage for other telecom and non-telecom customers • The addition of this talent in Italy & India and moving Ericsson to a large strategic account level, further underscores HCL’s industry leading Telecom OEM services offering as we now have all SP focused OEMs as our key customers globally Copyright © 2014 HCL Technologies Limited | www. hcltech. com

HCL-ERS geo wise demand trend Copyright © 2014 HCL Technologies Limited | www. hcltech.

Demand Trend India – 1/2 Verticals Top Hiring Skills Java/J 2 EE (Standard Skill) Java, UI (Standard Skill) Manual / Automation testing (Standard Skill) Software Microsoft Technologies (ASP. Net, VB. Net, c#. net) Engineering / (Standard Skill) PLM ATG (Niche skill) Windchill Implementation (Niche Skill) Team Center (Niche Skill) Ematrix or Enovia / Infor PLM (Niche Skill) Aero & Auto HW / VLSI Telecom & Networking RAMS DO (Niche Skill) C, Embedded development (Standard Skill) Demand Trend (Open Positions) Niche Skill - 150 -200 Standard Skill - 850950 Niche Skill - 60 -80 Standard Skill - 150200 PCB Design (Standard Skill) Analog / Mixed Signal / High Speed Board design Standard Skill - 40 -60 (Niche skill) Niche Skill - 100 -150 SOC Verification (Niche Skill) Lab View (Standard Skill) L 2/L 3 Testing and Development (Niche Skill) Java NMS/EMS Dev & Test (Niche Skill) LTE/WCDMA, CDMA Dev & Test (Niche Skill) Standard Skill - 200 - Linux, Windows device driver development & Kernal 250 development (Niche Skill) Niche Skill - 1000 - C, C++, Linux, TCP/IP (Standard Skill) 1100 Network Security development & Testing (Niche Skill) Copyright © 2014 HCL Technologies Limited | www. hcltech. com Supply Challenges / Focus Areas TP Hiring considered PLM - No active vendor support. Quality and supply of profiles is a ATG, Java, dot net challenge. ATG Hiring - less profile inflow RAMS DO - Quality and supply of C, Embedded profiles is a challenge SOC Verification - Very minimal profile inflow for Noida requirements. PCB Design Board Design - Profile quality is a major issue. Profile flow is very minimal for niche skills. Profile quality also C, Linux, TCP/IP has been an issue.

Demand Trend India – 2/2 Verticals Top Hiring Skills Demand Trend (Open Positions) Servers & Storage Development & Testing (Niche Skill) Storage Kernel Development (Niche Skill) VM Ware development & Testing (Niche Skill) Firmware Development (Niche Skill) Niche Skill - 200 - 300 C, Embedded development (Standard Skill) Mobile Technology (Niche Skill) Consumer Electronics & C, C++ Programming (Standard Skill) Office Automation Linux / Windows device driver development (Niche Skill) Manufacturing / Semiconductor Microsoft Technologies (VC++, MFC, C# Winforms development) (Niche Skill) C Embedded development (Standard Skill) Product Engineering tools (Niche Skill) Mechanical Engineering Medical Domain SME's (Niche Skill) CAD Design (Standard Skill) Copyright © 2014 HCL Technologies Limited | www. hcltech. com Supply Challenges / Focus Areas TP Hiring considered Less inflow of profiles for Chennai location Standard Skill - 200 -250 Niche Skill - 150 - 200 Less inflow of profiles for Windows Device Driver development profiles. C/C++ Unix, C- Embedded Standard Skill - 200 -250 Niche Skill - 150 - 200 Poor turn out on weekend drives across location has been a challenge for VC++, MFC and C# Winform skills. C# Winforms, C, Embedded Standard Skill - 200 -250 Niche Skill - 600 -700 Medical domain and Mech product design profile inflow has been a challenge CAD Tools

Demand Trend US Frequently hired skills: • Telecom, Networking, Mobility , Aero and mechanical are the key focus area • Volume Hiring demand in Java, . Net, Android, Open stack, C++, Embedded, Mobility, CQ 5 and Frontend • Niche skill demand in Open Stack, ATG, CQ 5, Aero Domain, mechanical Hiring trends: • Average hiring lead time is 15 days from the date of customer share us the requirement • FY’ 15 year demand trend is as follows : • • JAS’ 14 is 400 -450 positions; • OND’ 14 is 400 -450 positions and • JFM’ 15 is 550 -600 60% of demand is from West coast region Challenges: • In time hiring for Niche skill is a big challenge • Absence of vendors local presence in US • Turn around time for resume submission Copyright © 2014 HCL Technologies Limited | www. hcltech. com Key asks: • Building capability in sourcing Niche and super niche skills • There is a definite need to do Industry and Skill Mapping for ERS Skills • Turn Around time for resume submission is very slow. We should ensure all shared requirements are addressed within 24 - 48 hours • Building Pool competency for repetitive skills in ERS

Demand Trend Japan Frequently hired skills: • Embedded/Firmware development (Camera/Printer/Mobile devices) • Automotive (AUTOSAR, Car navigation infotainment) • Mechanical (Catia, CAD/CAM) Hiring trends: • Most of the ERS hiring happens for customers outside Tokyo such as Osaka, Nagoya, etc • All onsite hiring for ERS requires Japanese bilingual resources • Average hiring lead time is 45 days from the date of customer sharing us the requirement • Over 55% of our hiring are generally done through specialized vendors Key asks: • Quicker TAT of CVs in response to our requirements • Ability to attract talent primarily from some of the remote places within Japan, where most of the Manufacturing companies have set up their factories • Prioritization of HCL’s needs as against other companies Challenges: • Availability of bilingual resources – Japanese native or foreign bilingual • Reluctance of people to relocate within Japan, as most resources prefer to work in Tokyo • Availability of technical resources is scarce, as generally the local talent pool in Japan is small and they do not actively look for jobs • Due to the ageing population and declining birth rates, most potential talent fall in the age group of 45+ (in some cases 55+), irrespective of the level of resources we look for • Mindset of younger Japanese workforce to either work for global MNCs (Fortune listed) or domestic conglomerates, and reluctance to join IOPs like HCL, etc Copyright © 2014 HCL Technologies Limited | www. hcltech. com

Demand Trend China Frequently hired skills: • Embedded/Firmware development (Embedded Device/Mobile devices) • Automotive (AUTOSAR, Car navigation infotainment) • Mechanical (Catia, CAD/CAM) • Mobility Architect and Design (Mobile Application / UI/UX) Key Asks: • Quicker TAT of CVs in response to our requirements • HCL local project management and other relevant skills project opportunity in future Hiring trends: • All onsite hiring for ERS requires Chinese bilingual resources • Average hiring lead time is 45 days from the date of customer sharing us the requirement • Over 55% of our hiring are generally done through specialized vendors Challenges: • Availability of bilingual resources – Chinese native and English is good in read and write. • Short-term project duration is not workable. Candidate prefers initial contract at least starting with 3 years. • Candidate relocation concern. • Availability of technical resources is scarce, as generally the local talent pool in every city has different focus skillset. • Candidates by & large, are not receptive to work onsite at client locations, and prefer to work in Inhouse roles. • Localized ERS overall management is missing, Many project renege rate is high, because there is no localized support from HCL and client not treating onsite employee well Copyright © 2014 HCL Technologies Limited | www. hcltech. com