US slowdown will not hit digital spend: C Vijayakumar, CEO, HCL Technologies

HCL Technologies expects its customers in the US to continue their digital spending, irrespective of the possibility of an economic slowdown, as they look at transforming their businesses. That is because digital projects have become the core to a lot of companies, the company’s
CEO C Vijayakumar told ET in an interview.

Your organic growth is just meeting the industry average…

We had clearly defined our organic growth in the beginning of the year. Our bookings have continued to pick up. This quarter also we saw the highest booking. Our year-to-date (YTD) booking is 40% higher than the previous growth. It is overall strong from an organic perspective.

We hear commentary on potential US slowdown. What are your customers saying?

We are hearing it in some pockets, but largely the spend on digital transformation is only going to accelerate. It is important for a lot of large clients and prospects for us. They don’t believe it is not discretionary that you can cut down in certain situations. Digital spending will continue because it is the core to a lot of companies and in modernising their offerings.

Do you expect the spending to increase across verticals and geographies?

I am not saying it will dramatically increase, but whatever programmes that are there will definitely continue. I don’t see any scale-back in spending on transformation projects. There is a lot of awareness that these programmes are critical to the mid to long-term for these companies.

When can we expect to see a impact of the IBM products acquisition?

We will close the deal in June or July. The revenues will start clocking in immediately after that.

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