HCLTech CEO identifies Gen-AI as the next frontier

C Vijayakumar, the Managing Director and CEO of HCLTech expressed optimism about the company's performance, highlighting positive trends in the fourth quarter of the fiscal year 2024.

According to Vijayakumar, HCLTech is set to close the fiscal year with a growth rate of 5%-5.5%, the highest growth in its sector.

“Q4FY24 continues to look good. So we will close FY24 with 5%-5.5% growth, which will be the highest in the industry. We have a good run rate, we have a good pipeline, even this quarter, we had about $2 billion booking, all of that will translate into revenue next year,” Vijayakumar stated in an interview with CNBC-TV18.

Despite an overall cautious business environment, Vijayakumar pointed out resilient areas within the technology sector. Notably, he highlighted the robust performance in SAP transformation, data transformation, cloud migration, and cybersecurity.

The company has strategically aligned its focus on these resilient segments, responding to client interests and sustaining ongoing investments in these key areas.

Vijayakumar drew an interesting analogy between the technology industry and the fashion industry, emphasizing the evolving trends. He identified the latest trend as "Gen-AI" or generative artificial intelligence, which he believes will be at the forefront of technological advancements.

While Gen-AI itself may represent a smaller portion of spending, HCLTech aims to leverage the surrounding opportunities, such as data infrastructure, cloud solutions, and cybersecurity, to tap into larger market shares as Gen-AI initiatives scale up.