HCLTech to boost presence in Mexico; to hire 1300 employees over next 2 yrs

HCLTech on Saturday announced plans to scale up its operations in Mexico by opening a new technology centre in Guadalajara city and hiring 1300 employees over the next two years amid concerns over high attrition levels.  

The new centre in Guadalaraja will enable the company to serve its local and international client base across industries. It will be the sixth technology centre in Mexico and will focus on creating next-generation digital solutions. In line with the company’s hybrid operating model, the new unit will embrace an agile workplace, the IT major said in a press release.

HCLTech is among the top Indian companies battling high attrition rates in the past few quarters. The profit margins of HCLTech’s service business came under pressure in Q1FY23 when the attrition rate grew to 23.8 per cent from 21.9 per cent in the preceding quarter.

The company’s management, while reporting results for Q1FY23, had said the attrition rate was “expected to remain high in coming months.” The management indicated that the company was accelerating hiring in Sri Lanka, Vietnam, Romania, Mexico, Costa Rica, and Brazil.

“We are fortunate to have strong partnerships with our clients and partners as we commit to expanding in Mexico,” said Ajay Bahl, corporate vice president, Americas and executive sponsor, Mexico, HCLTech. “This strong network with the local ecosystem – along with our investments in cutting-edge delivery centers and a talented workforce – powers our mission of supercharging progress with technological breakthroughs for the industry and the region.”

The announcement comes days after the IT firm announced expansion plans in Brazil, indicating an increased focus on its nearshore strategy to serve the major markets including the US.

HCLTech established its first Mexican office in Guadalajara in 2008 and now employs 2,400 people across its centres in Guadalajara, Mexico City, and Monterrey. The company recently announced a digital transformation partnership with Cemex, a global construction materials company, and an integrated IT Services partnership with business consulting company Neoris.

Pablo Gallegos, country head, Mexico, HCLTech said, “By delivering differentiated services and solutions to our clients, HCLTech is committed to becoming the chosen digital partner for enterprises operating in Mexico and across the globe. We are also committed to developing local talent through our training programs and academic partnership in the region.”