MODERN APPLICATION SERVICES - POWERING THE 21ST CENTURY ENTERPRISE Ajit Kumar, President, Application Services, HCL Technologies 1 HCL Technologies Confidential Copyright © 2016 HCL Technologies Limited | www.hcltech.com AGENDA 1 HCL’s Application Services Business Snapshot 2 Key Market Trends and Shifts – Application Services 3 HCL’s Response and Success Stories • Digital Platforms • Enterprise Cloud Services • Application Management Services 4 Industry Domain Expertise 5 Conclusion 2 HCL Technologies Confidential Copyright © 2016 HCL Technologies Limited | www.hcltech.com HCL’S APPLICATION SERVICES BUSINESS SNAPSHOT 40K+ $2.5 31 P E O P L E B I L L I O N C O U N T R I E S 3 Core Practices to cover the entire Applications portfolio and to support the Digital Transformation journey: Practices Enterprise Package Services I Application Development I Application Managed Services Enablers Digital | Security | Cloud | IoT | Public Services | Manufacturing | Life Sciences | Consumer Services | Financial Services Industries Utilities| Oil & Gas | TTL | Hi-tech | Automotive | A&D | Pharma| Healthcare |Retail | CPG | Telco |MPE |Insurance | Banking | Capital Markets 3 HCL Technologies Confidential Copyright © 2016 HCL Technologies Limited | www.hcltech.com KEY MARKET RECOGNITIONS Cloud SAP Big Data Banking HCL Rated as a Global Leader in HCL Rated as a Global Leader in HCL Rated as a Global Leader in the IDC HCL Rated as a Global Leader in IT IDC MarketScape: Cloud Gartner Magic Quadrant for SAP MarketScape: Worldwide Big Data Outsourcing in Global Banking – Professional Services Implementation Services, Consulting and Systems Integration Service Provider Landscape with Worldwide, 2016 Services Vendor Assessment, 2016 PEAK Matrix™ Assessment 2016 Recognized as a Market Leader Across Emerging Technology And Industry Portfolio HCL Rated as a Global Leader in HCL Rated as a Global Leader in HCL Rated as a Leader and a "star HCL Rated as a Leader in Zinnov’s IDC MarketScape : Application the Forrester Wave for North performer” in IT Outsourcing in Life Media & Entertainment Global Modernisation for Digital American and EMEA Applications Sciences Industry – Service Provider Service Providers Rating for Transformation, 2016 Outsourcing Services, 2014 Landscape with PEAK Matrix™ Gaming, Entertainment , Marketing Assessment 2015 report. & Advertising, 2016 Application Application Life Media & Modernization Outsourcing Sciences Entertainment 4 HCL Technologies Confidential Copyright © 2016 HCL Technologies Limited | www.hcltech.com KEY MARKET TRENDS AND SHIFTS Disruption of Digital Technologies and Cloud and the Continued focus on Application Management 5 HCL Technologies Confidential Copyright © 2016 HCL Technologies Limited | www.hcltech.com KEY MARKET TRENDS INFLUENCING THE APPLICATION LANDSCAPE HCL recognizes 3 key market trends driving growth for the 21st Century Enterprise CLOUD Market opportunity for public & private cloud will be $250Bn+ in next 5 years DIGITAL Digital Transformation spend to reach $2.1 trillion by 2019 APPLICATIONS ADM Market at $72.8 Bn in 2016 with grow at 5.6% CAGR by 2020 MANAGEMENT Sources: Gartner (Aug 2015). Press Release: Gartner Says Modernization and Digital Transformation Projects Are Behind Growth in Enterprise Application Software Market Gartner (2015) -The Gartner Scenario for IT Services Providers: The Digital Future of IT Services; Gartner (2015) –The 2015 CEO Survey 6 HCL Technologies Confidential Copyright © 2016 HCL Technologies Limited | www.hcltech.com HfS research (2016) DIGITAL TRANSFORMATION - THE MAIN DRIVER FOR APPLICATIONS GROWTH Worldwide spending on Enterprise Application software will grow to $221 billion by 2019 driven primarily by digital transformation projects with focus on modernization and functional expansion Digital Digital Transformation spend to reach $2.1 trillion by 2019 ) n o $2.10 BI & Analytics rilli Application Modernization T $ ( BI and Analytics Spend to reach nd $0.83 Spend across key segments will triple d e n $24.1bn by 2019 p by 2018 e S sp $24.1 al M) Cloud API Mgmt Services $2400 prise n) $17.6 $20.5 Glob 2014 2019 nd ($ abPpamaPSa PalSatforms nter($b Spe bal e 70+% omfo bduesrinniezses ethse airre e nbveiirnogn fmorecnetds ttoo obal $800 $280 $324 Glo handle emerging digital platforms Gl $80 $100 2015 2017 2019 2013 2018 40% of CIO’s consider BI & Analytics as 60% of IT services growth will be attributed to 67%of organizations to have 50-100% of theirApp their Top IT Spending Priority digital technologies Portfolio transformed to web basedapps 75% of organizations will deploy advanced 85% of new BI platform spend will be on 8% The expected CAGR of Modern Apps to analytics to improve decision-making ModernBIplatforms 2019asitcontinuestobeatopinvestment 7 HCL Technologies Confidential Copyright © 2016 HCL Technologies Limited | www.hcltech.com CLOUD - TRADITIONAL APPLICATIONS SPENDING HAS SEEN RADICAL SHIFTS Key Cloud Trends • Within 5 years, the market opportunity for public & private • This shift away from Legacy IT Services will drive Cloud cloud will be $250Bn+ Application Services to grow 20% to reach $37.7bn in 2016 • Enterprises are increasingly shifting to alternative Cloud and • Cloud ERP is expected to increase at CAGR of 8.30% over hybrid based models with Gartner indicating that these the period of 2016-2021 presenting significant Cloud consumption models will account for over 50% of new projects Services opportunities for HCL SAP, Microsoft and Oracle are executing bold Cloud strategies STRATEGY Becoming theCloud First vendor competing Delivering the ‘Perfect Integrated solely against pure-play Cloud competitorsand Transforming into a ‘Mobile and Cloud First’ company Enterprise’ underlinedby Cloud not SAP with Azure, Cloud, IoT, and mobile technologies SAPCloud Subscriptions forecasted to SPOTLIGHT overtake traditional SAP software license Commitment that ‘All our Apps will be Cloud revenue in 2017 and Cloud revenue will Dynamics365 will launch this FY to drive more Apps’ by Oracle’s co-CEO reach 63%-65% of total revenue mindshare in the Cloud market 8 HCL Technologies Confidential Copyright © 2016 HCL Technologies Limited | www.hcltech.com APPLICATION MANAGEMENT SERVICES CONTINUES TO REPRESENT SIGNIFICANT OPPORTUNITIES CAGR 2015 - 2020 6.2% 5.6% 4.8% 4.5% 3.9% 3.0% 0.2% -2.2% ADM CRM F&A HR Industry IT Infrastructure Other IT Professional Specific Mgmt. Services Services Source: HfS Research, 2016 • Application Development and Maintenance (ADM) volumes continue to increase tempered by pricing pressure and some insourcing, but the market continues to grow faster than other segments in IT Services • ADM Market in 2016 – 72.8 BN USD 9 HCL Technologies Confidential Copyright © 2016 HCL Technologies Limited | www.hcltech.com HCL RESPONSE & OFFERINGS Digital Platforms, Enterprise Cloud Services and Application Support and Maintenance 10 HCL Technologies Confidential Copyright © 2016 HCL Technologies Limited | www.hcltech.com
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