HCL Infosystems aims to double Mideast revenues

Dubai: With enterprise related IT spending making a gradual return, the Indian tech major HCL Infosystems expects the Middle East and Africa to contribute $50 million (Dh183.5 million) to its full-year revenues. This represents a doubling of its order book from last year.

It was in July that HCl, which has an annual turnover of $2.75 billion, made a direct entry into the region by acquiring a 60 per cent stake in Dubai-based NTS Group. It also acquired 20 per cent in Techmart Telecom Distribution last December.

"With the addition of NTS and Techmart, HCL Infosystems is now expanding its global footprint in the Middle East and African market with direct operations to address the system integration, services and distribution networks need in these regions," Harsh Chitale, CEO, told Gulf News.

Unfazed

Emerging markets, according to him, were unfazed by the financial downturn, though some contraction did take place in the growth of IT services. It's now in recovery mode and the increased spending is coming from telecom, banking, financial services, insurance and power industries.

"It is a company focused on products, solutions and services with a focus on emerging markets. We are expanding to Saudi Arabia, Turkey and Qatar and have presence in South Africa and Nigeria."

Cloud computing has not as yet picked up speed in the Gulf compared to other parts. In India many small- and medium-sized companies are making the migration on a rapid scale while the large enterprises are lagging.

One sector which is really reaping benefits is education where data privacy is not an issue.

HCL, which in the past has sold PCs to large corporations in the UAE, is expected to start retailing these this year. It has a market share of 8 per cent in India and ranks in the top five, while in the B2B space, the brand's the numero uno.

Chitale said convergence is happening in the market and this will be mirrored in a new category of mobile devices. HCL will be launching an Android 2.2 tablet in India this month.

"Things are coming back to normal in MEA and we see a lot of growth opportunities in IT consolidation," said Shivkumar Gopal, CEO of HCL Infosystems Middle East and Africa.

"Everybody is looking to trim IT costs and that's where we are looking at while partnering with large organisations.

"HCL is augmenting the existing NTS Dubai business to create larger business. The existing client relationships across Dubai, Abu Dhabi and Qatar is now having access to HCL's bouquet of specialised IT products and solutions."

Independent unit

Kumar said the company is building on its resources in Dubai as there is no point in being dependent on the India operations. "I want MEA to be independent," he added.

The agreement with Techmart Telecom also provides an option to HCL to acquire up to 51 per cent of the equity. Chitale said:

"We have just entered into that relationship. We need to get better visibility of what the operation is and what opportunities exist. We don' have a time gap.

"If we get better visibility we will raise the stake."