Hcl Infosys Eyes Europe, Japanese Markets

HCL Infosystems, formerly HCL HP, will mainly focus on software exports for telecom and utilities through joint ventures and strategic relationships in Europe and Japan for which it is currently in talks. The company will also increase production of personal computers from 80,000 to 130,000 by the end of the year. It hopes to market 1 million PCs by the turn of the century. The company currently produces 15,000 PCs a month.

"Our key strategy would be to expand into new markets in Europe and Japan for which we are holding talks for joint venture proposals and marketing tie ups," Ajai Chowdhary, president and chief executive officer, HCL Infosystems, said.

"The software industry has vast market potential in areas relating to the millennium bug, European single currency and the rapidly expanding telecommunications sector," he said. "Our aim is to focus on software development, consultancy and technical integration that is to provide end to end solutions and tap the export markets through its worldwide subsidiaries."

The market for developing software related to the single European currency is around $100 billion while that for the year 2000 or Y2K problem-software market is between 600 to 1500 billion dollars.

HCL Infosystems, which is planning a major foray into the Japanese market, has set up a core group to develop software addressing the Japanese language which is essential for making inroads into the market.

It recently bought back 26 per cent of the equity held by Hewlett Packard and changed its name from HCL HP to HCL Infosystems. HCL is a $550 million transnational with interests in computers, networking, software services, computer education, office automation and medical diagnostic imaging.

HCL has an installed base of 300,000 indigenous PCs and over 5000 HP servers and workstations. The company has a market share of 16 per cent in PCs and 30 per cent in servers and workstations in the country.