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ANALYSIS
HCL
TECHNOLOGIES
1. STRENGTHS
1. WEAKNESS
1. THREATs
A. One of key threat for HCL and the industry as a whole is the
ban of outsourcing from India due to new regulations from U.S
B. Dip in quarterly Sales by 5% can lead to loss of market share
and product depreciation.
C. Small Players and manufactures are trying to enter into the
segment where they can provide much cheaper products then
HCL which will be a rising competition for HCl to stand.
PEST ANALYSIS
IT INDUSTRY
Political
A.Tax rates in India for the hardware sector is 20%-
30% plus which creates obvious possibilities for the
further reform and faster growth.
B.10Year Special Economic Zones programs and
tariffs change to promote the hardware production.
C.26 new projects as a part of a national E-
Government Plan.
D.Tax initiative by government to ask state
government to fix VAT at 4% in the hope of
attracting investors.
E. Manufacturing Associations of IT(MAIT) an
Electronic Industry Association of India(ELSINA)
are also pressing for reduction in land acquisitions
rights by stamp duty exemptions.
Economic
SOCIAL
A. Only 1.3% of people in India own a computer.
B.Age Distribution:- 45% of the population is under
25.
C.Regional imbalance and low incomes.
D.Inward Investment can lead to better job
opportunities.
E. Still Abroad is the fascination among the IT
professionals to work.
F. IBM, Wipro and Infosys recruit 15000-20000
graduates each year.
G.Business practices varies region wise
Technological
A. Plans by AMD to set up the country’s 1st chip fabrication
(an investment upto US$3bn) to stimulate local production
and lower prices.
B. Multimedia features and Entertainment to bring bollywood
among the masses.
C. Lenovo to built in TV tuner cards capable of connecting to a
TV antenna.
D. During the year Satyam entered into an agreement with US
based G-LOG, to offer a supply chain management and
supply chain execution solutions to its customer.