New Research by Independent Sourcing Advisory Firm Indicates “Asset-Light Model Provides Better Supplier/Buyer Alignment”

SUNNYVALE, Calif.--(BUSINESS WIRE)--The latest report from Everest Research Institute, the research arm of Global Sourcing advisory firm Everest Group, predicts robust growth for the Infrastructure Management Outsourcing (IMO) market and hails its popularity as “likely to invigorate the Infrastructure Outsourcing (IO) marketplace, as it strips the labor from assets in outsourcing deals.”

In the report entitled “Infrastructure Management Outsourcing — The Emergence, Adoption, and Growth of IMO,” Everest describes an “asset-light model” as providing “better alignment of supplier incentives with buyer interests. Buyers find it beneficial to own IT assets due to the inherent flexibility, control, and benefits of scale. New technologies also serve as a catalyst for the asset-light approach, due to the constant turnover of the asset base and the difficulty of predicting the technology road map. Finally, the emergence of Remote Infrastructure Management outsourcing (RIMO) played a key role in instituting asset light as a sustainable model.”

The findings of this report corroborate HCL’s co-sourcing model, which is built on the fundamental philosophy of “asset light contracts” and results in flexibility, control and transparency to the customer. HCL introduced the co-sourcing model of engagement in the market five years ago and since then has won customer confidence through this unique differentiation in the global IT services marketplace.

Co-sourcing addresses enterprises’ need for flexibility and strategic control of their IT infrastructure outsourcing engagements. This model is based on a collaborative approach to outsourcing by defining it as an activity of partnership between the client and the service provider, whereby the client retains assets and strategic decision-making, while the service provider takes over the day-to-day running of IT operations and provides recommendations on strategic aspects.

“The asset-light model of Infrastructure Management Outsourcing offers a more gradual framework for IT transformation, requiring a lower degree of buyer commitment and featuring a risk-reward profile that appeals to buyers who prefer to exercise tighter control over IT assets, possess scale in IT infrastructure, and require increased flexibility,” said Ross Tisnovsky, VP, Everest. “HCL has been one of the earliest propagators and thought leaders in the IMO space.”

Commenting on the report, R Srikrishna, Sr. VP, NORAM Sales, HCL ISD, said, “As a pioneer of the global delivery model of Infrastructure Management, HCL has introduced many disruptive frameworks and models in this space. Everest’s recent report not only reiterates the relevance of this model, but also describes it as key to sustainable IT transformation and spotlights alternate options for enterprises to consider when evaluating the “traditional model” of outsourcing practiced by the Big 5 outsourcing firms.”

HCL is widely acknowledged as a pioneer and leader of Remote Infrastructure Management Services. The company was ranked No.1 ‘Specialty Offshore Infrastructure Services Provider’ by NeoIT and ‘Managing Offshore’ magazine and has also been ranked as the World No.2 in IT Infrastructure Services by Global Services 100 Survey. The company was also recently cited as a LEADER in Global Delivery of Infrastructure Management in Europe by Forrester and a LEADER in Domestic RIM by Frost & Sullivan.

About HCL ISD

HCL ISD is a leading IT services company (known and registered as HCL Comnet in the Indian market and a subsidiary of HCL Technologies Ltd.). A focused player in the IT services arena, HCL ISD seeks to provide simplified infrastructure solutions through delivering high-performance management services for complex, distributed infrastructure environments encompassing the Internet, Client and legacy based infrastructures. HCL ISD addresses the growing demand for the cost-effective management of technology infrastructure across geographically dispersed locations. With a mission to develop innovative solutions for enterprises worldwide, the company has developed a unique model for Remote IT infrastructure management that enables customer organizations to achieve superior infrastructure performance and significantly reduced costs through a global delivery model. For more information, please visit www.hclisd.com.

About HCL Technologies

HCL Technologies is one of India's leading global IT Services companies, providing software-led IT solutions, remote infrastructure management services and BPO. Having made a foray into the global IT landscape in 1999 after its IPO, HCL Technologies focuses on Transformational Outsourcing, working with clients in areas that impact and re-define the core of their business. The company leverages an extensive global offshore infrastructure and its global network of offices in 17 countries to deliver solutions across select verticals including Financial Services, Retail & Consumer, Life Sciences & Healthcare, Hi-Tech & Manufacturing, Telecom and Media & Entertainment (M&E). For the quarter ended 31st March 2007, HCL Technologies, along with its subsidiaries had last twelve months (LTM) revenue of US $ 1.27 billion (Rs. 5,675 crores) and employed 40,149 professionals. For more information, please visit www.hcltech.com.

About HCL Enterprise

HCL Enterprise is a leading Global Technology and IT enterprise that comprises two companies listed in India - HCL Technologies & HCL Infosystems. The 3-decade-old enterprise, founded in 1976, is one of India's original IT garage start-ups. Its range of offerings span Product Engineering, Custom & Package Applications, BPO, IT Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products. The HCL team comprises approximately 44,000 professionals of diverse nationalities, who operate from 17 countries including 360 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and Technology firms. For more information, please visit www.hcl.in.