External and Internal Forces for Changes at Hcl

Change is inevitable in the life of an organisation. In today's business world, most of the organisations are facing a dynamic and changing business environment. They should either change or die, there is no third alternative. Organizations that learn and cope with change will thrive and flourish and others who fail to do so will be wiped out. HCL is not an exception. To be as successful as today, HCL had go through a transformation which is created by both external and internal forces.

The external force of change is to adapt to customer and market changes. Although the company's revenues were growing by about 30% a year, it was losing its market share and mindshare. Meanwhile, competitors were growing at the rate of 40% or 50% a year. The reason for the decrease in market-share and mind-share of HCL is that customers didn't want to work with an undifferentiated service provider that offered discrete services; they wanted long-term partners that would provide end-to-end services

The internal forces of change within HCL are that of employees. HCL stays alive because of the happiness of its employees. In other words, the interface between customers and frontline employees represents the value that company offers. According to the discussion between customers and Vineet Nayar, customers did not talk much about HCL's products, services, or technologies; they spoke mostly about HCL's employees. As a result, if HCL was still a traditional pyramid in which front line people were accountable to a hierarchy of managers as before, employees has less opportunity to express idea and little power to perform in a way that can add more value to HCL despite the fact that they are the one who understand most thoroughly about customers' need and want. However, thanks to the transformation, HCL created a unique management culture "Employees first, Customers second".