HCL bullish on Europe deals despite economic woes

Software services provider HCL Technologies sees more deals coming through in Europe this year despite the economic troubles, with clients not pulling out of IT investments as they did during the banking crisis in 2008, its regional chief said on Friday.

“We have not seen any immediate reaction yet. Two years ago the reaction was fast,” said Rajeev Sawhney, president of the company’s European operation, where its biggest markets are in the financial services and manufacturing sectors.

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“We have a very decent pipeline at this point of time. We have good visibility through to December,” he told Reuters by telephone.

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European revenues in the year ended June 30 rose 29 percent to $952 million for HCL, India’s fourth largest software services provider, which competes with Tata Consultancy Services (TCS), Infosys and Wipro

Earlier this week HCL said it had signed a five-year applications support deal with the capital markets arm of Deutsche Bank.

Sawhney said he hoped the economic slowdown would offer new business opportunities for outsourcing companies like HCL whose low overseas cost base offer clients bigger savings than local companies can promise.

“Some regional European companies are likely to see further pressure,” he said.

“People want to run their businesses more efficiently, especially in this time. Clients want to keep their lights on, keep their businesses going.”

Reuters