HCLTech will now cater to small businesses in India
What's the story
HCL Technologies, India's third-largest IT services company, has launched a dedicated business unit for small and mid-sized companies. The move makes HCLTech the first major Indian tech services firm to do so. The new unit, Neo.AI, will leverage HCLTech's AI platform and IT services to provide software development, maintenance, and data analytics for mid-market clients.
Market competition
Competition with mid-sized IT services companies
The launch of Neo. AI also puts HCLTech in direct competition with mid-sized IT services companies such as Coforge Ltd, Persistent Systems Ltd, and Mphasis Ltd.
The company aims to target small businesses with limited budgets and provide shared services using its AI Force platform.
This strategy is expected to take away business from mid-tier IT service providers that rely heavily on small companies for their revenue.
Strategic approach
AI agents to deliver IT work
HCLTech plans to deliver about 60% of the IT work through its in-house AI agents, with the rest being handled by humans.
The company's goal is to get as many clients as possible on its software and AI platforms for their business needs.
Earlier this fiscal year, HCLTech appointed Ashish Kumar Gupta as head of Neo. AI.
Gupta has been with HCLTech for over two decades and previously headed its Europe, West Asia, and Africa business.
Expansion strategy
Neo. AI takes over around 90 accounts
Neo. AI has already taken over around 90 accounts and is looking to target at least 500 more small accounts.
The unit currently has at least 300 executives on board, with the sales rollout almost complete.
HCLTech's new sales approach will start with smaller AI deals and then scale up once return on investment is visible, said Amit Chandra, Vice-President at HDFC Securities.