HCLTech to scale up operations in Brazil; to hire 1,000 people

HCLTech currently employs over 211,000 people across 52 countries.
HCLTech chairperson Roshni Nadar Malhotra (Photo| HCLTech)
HCLTech chairperson Roshni Nadar Malhotra (Photo| HCLTech)

BENGALURU: Technology company HCLTech, which recently launched its new brand identity and logo, plans to hire 1,000 people in Brazil in the next two years. The company will also open a new technology centre in Campinas.

The IT services major is scaling up as it is growing a local and global client base across industries. The company will hire local IT talent to develop and deliver technology solutions and services across digital, engineering and cloud. HCLTech said it will embrace an agile workplace.

"We are committed to delivering technology-driven differentiated solutions to our clients' increasing demands for digital transformation," said Anil Ganjoo, Chief Growth Officer, Americas and Executive Sponsor, Brazil, HCLTech.

HCLTech's consolidated revenues as of 12 months ending June 2022 stood at $11.8 billion. It employs over 211,000 people across 52 countries.

"We are excited to continue expanding our presence and bringing new economic opportunities to Brazil," said Fabiano Funari, country head, Brazil, HCLTech.

As IT companies will announce Q2 FY23 results this month, analysts say challenges will be amplified in the second half of this fiscal.

In a report, Kotak Institutional Equities said, "We believe there are enough data points to indicate a slowdown. These include job losses at clients, impact on non-essential retail and mortgages, earning warning from many large software companies, to highlight a few."

It forecasts HCLTech's sequential revenue growth will be 2.9%, led by 3.5% c/c growth in services (IT services + ERD).

Services growth will be powered by continued strength in deals. The products business will likely decline qoq and yoy to $303 million. "Cross-headwinds are likely to be higher at 218 bps qoq and 489 bps yoy. We expect EBIT margin to increase by 40 bps and decline 156 bps on yoy comparison. Headwinds for September 2022 quarter are wage revisions (90 bps impact), high cost to backfill attrition and increase in travel and other costs," it said.

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