HCL Technologies puts employees before customers: … and reaps rich rewards in terms of market-leading innovation and profitability

Abstract

Purpose

Reveals that, in an era when almost all businesses accept that the customer comes first, a company that is putting its employees in pole position is reaping the benefits in terms of innovation, customer satisfaction and profitability.

Design/methodology/approach

Underlines the reasons for the employee first, customer second approach at HCL Technologies, the information-technology and software-development division of HCL Enterprise, how this has evolved into the corporate philosophy of “ideapreneurship” at the company and the effects of this corporate philosophy.

Findings

Explains that grassroots innovation has led to 20,000 ideas being put forward by some 12,000 employees over the last eight years. Almost 4,500 ideas have been implemented and a further 3,000 are being introduced. They have generated more than $250 million of value. On a wider level, HCL has seen a 500 percent increase in revenues since 2005.

Practical implications

Demonstrates that the company, a software-engineering partner for Boeing's 787 Dreamliner passenger jet, is delivering one of the best returns on equity among offshore IT providers by creating an entirely differentiated set of offerings focused both on running and changing the business.

Originality/value

Reveals an unorthodox approach to human-resource management that has helped to turn round the fortunes of an information-technology company.

Citation

(2014), "HCL Technologies puts employees before customers: … and reaps rich rewards in terms of market-leading innovation and profitability", Human Resource Management International Digest, Vol. 22 No. 1, pp. 11-14. https://doi.org/10.1108/HRMID-01-2014-0005