HCL Technologies Limited (HCLTECH) Earnings Call Transcript & Summary

Good afternoon, and thank you to all of you for having come and spend so much time with us. We are really honored and grateful to you all for your time. So this is a very interesting session. Never in the life of IT industry an HR guy is so much stressed. On one hand, you have a very robust demand environment. On the other hand, you have conflicts all over the globe. And then there is this inflation, which is running so high in so many geographies. And COVID doesn't seem to be subsiding. Travel has increased. So all around, there are plenty of problems for us, but some of them are very good to have problems. So we will try to address how we are looking at the talent segment. One of the things which I would like to start, not with the talent segment, but with an employee engagement. The reason why I would like to do that is if you have talent, yes, the talent stays with you when you engage them very well. They are productive. They are happy when the engagement levels are high. So that should be the bedrock for any talent attraction or retention. And hence, I want to spend a couple of minutes on talent, the employee engagement part before we dive into -- so employee engagement and what results it has given us, what framework we are using, what direction, what philosophy we are implementing. And then the talent acquisition part. And it won't be -- unless otherwise you have technology helping you, hiring so much of scale is not easy. So a little bit on that. And then the strategy what we are adapting for acquiring talent. So employee engagement. If you look at it, I mean, the hire to -- hire, retain and retire cycle, if you look at it, every stage is very important. So hiring, what onboarding experience we are giving our people who are joining us. Once they join us, how are we taking care of them, how are we engaging them. So -- and as Anand mentioned, right, it is not just onboarding people with the right technologies. It is also how we are enabling the learning, how we are making them curious in terms of continuous learning. Because today, any employee is basically selling his skills. And as long as the organization is helping him in acquiring those skills to a higher degree, he will be very happy to stay with us. And we have to give the right role, right compensations, all that. But I think it's very important that the learning cycle should take utmost importance in the life of an employee with an organization. So we want to do all these things because eventually, as C. Vijay mentioned, we want to be an employer of choice, right? I mean with -- in so many geographies we are there today, we are branding ourselves and we are trying to become an employer of choice because we want to create that pull in terms of attracting talent. So what are the drivers which we are using in engaging our employees? If you see, wellness has become a very important part during this COVID period. I mean we have seen the suffering. Every one of us, we have seen our near and dear ones suffer. Some of us have lost our near and dear ones. It has not been an easy time for the last 2.5 years in our lives globally. So wellness has become a very cornerstone of any organization's approach towards engaging employees. The second is, how do we, I mean, create the passion in employees? Because a passionate employee can really, really deliver what customer needs, and he engages the organization and colleagues also. So how do we encourage employees? How do we create that passion in employees is another big area, which is a direction for us. And we are also bringing families. I mean people are working at home most of the time. If the families are not engaged, then we lose something in terms of connecting to the employee in a holistic way. So we are trying to bring families also into the whole equation. And then celebrating the successes, I mean -- and spreading the message, the positive message among employees is something which we are looking at. And what are these ABCs of this employee engagement? I mean we really want to attract talent. We really want to make them feel that they belong here. And we want to enable them to collaborate with our colleagues and the organization and customers, right? And the outcomes are very clear. An engaged employee, we know that statistics very clearly show that are far more productive and far more long-staying in the organization. So we are trying to retain by creating these drivers. And obviously, wellness is very important. A healthy employee can be a lot more productive. And as we are seeing, I think the next wave of human resource direction is going to be productivity and proficiency. I mean skills are going to be very important, not the degrees. So how do we skill our employees, that outcomes we have to see and how do we deliver productivity to customer, which also becomes very important. Yes. And as I said, very, very important part of our employee engagement is wellness. And we are encouraging every -- all of our campuses have got hospitals which run 24/7. So we are encouraging all of our employees and their family members to take a complete health checkup. And in that health checkup, if there are any issues they face and then there are managed care plans, we are handholding them towards a good health, and that is what you can see. And during COVID time, when everyone is working at home, we also saw anxiety levels of employees -- some of the employees have gone up. How do we manage that the anxiety? How do we keep them physically and mentally engaged? How do we create these wellness programs for them? So there are a host of things we are doing. At the peak of the COVID wave, I mean, we have deployed 50 doctors, 50 nurses and 17 wellness coaches, who can address the employees' queries and guide them towards clearing any doubts or hospitalization or medication. So that has gone a long way in terms of easing the pain of our employees and their families. Yes. I mean, obviously, this has led us to many recognitions. One of the way in which we try to measure ourselves is by participating in any of these are some of them -- they themselves recognize by way of the pointers that are there in the market. The top employer is one such thing because it tells us where we stand in each of the geographies. How well our policies are, how well we are taking care of our employees, and what are the compliance-related activities which we are doing, it kind of shows a mirror to us. And I'm happy for 4 years back, we were only rated in one country. Today, we are a top employer in 17 countries, and we are planning to go to 25 countries next year. So that is one of the things. And we also won a gold award from Brandon Hall for crisis management. During COVID, I mean, our customers have given us a 99% satisfaction rating. 6,000 customers have mentioned us, saying that we managed the crisis very well. So I think that's another thing which we are proud of. C. Vijay mentioned in the morning about the Forbes recognition as the top IT services player. Last year, we were third or fourth across all IT services companies. But this year, we have moved ahead. That's completely independent survey, nothing to do with HCL, right? And then we also got employee engagement award from Brandon Hall, a gold award. So we are really happy and proud to have received these awards. And obviously, it has helped us in retaining our people. Our attrition levels are better than most of our peers. So that probably is an indication that whatever we are trying to work with our employees and engaging our employees is helping us. Now coming to talent. I mean is it a challenge or an opportunity? We have deliberated among ourselves, and we definitely see this as an opportunity. It's a band, that's what [indiscernible]. It is not to decelerate. It is to accelerate. We believe this is a band in IT services history. And we also believe that we are very well poised in terms of moving and accelerating faster in this environment because of a differential strategy we are -- we have adopted. I mean I will explain each of these as we move forward. But what are these differentiated strategies? One is we are focusing more and more -- expanding our presence in more geographies. We are looking at more talent segments from where we can hire. And we have defined our skill cohorts in a manner that we can do bulk hiring and aligned to our customers' requirement. And we have a huge training and skilling program that's going on in the organization, which is helping us to repurpose our people or take people with adjacent skills and train and deploy them, yes, and that also should help us in our retention. That's a strategy what we are looking at. So one pillar of this is the external hiring strategy. We have scaled up our recruitment team so that we are in control of the hiring that we are doing. And we are also using partners wherever and whenever required to scale. Basically, the flex part is what we are trying to use them when our direct sourcing is coming a little short. And then internal talent development. Like I said, we have -- last year, we have done 8.5 million minutes of training, which is significantly higher than the previous years. I mean we are certifying our people. Even at entry level also, if you see, we take people and then we ask them to certify on the cloud or digital or analytics or cybersecurity, and they can increase their compensation by 50% almost, yes. So there are a lot of content that is available, assessments that are available for people to upskill themselves. And New Vistas is a very differentiated strategy we have. This is the principle of taking people back to roots. So we are not asking them to come and join us at the places where we are. We are trying to open centers where talent is available and take work there. I will explain. And glocalization. Whichever geography we go, whether it's within India or outside India, we are heavily focused in partnering with the local talent, training the local talent and then deploying them and increase the localization. We are a global organization trying to be local in every geography we operate in. And freshers talent. Many leaders have expressed, we are doing reasonable freshers hiring, but it's not sufficient. We have to scale up. We are acutely aware of that. And as we go by, we will try to increase our freshers talent. So you know the strategy what we have, which is Mode 1, 2, 3. So one of the things what we are doing is we define the skill set now for Mode 1 and 2, as you heard from many speakers, right? I mean today, the stack is right from a business process to underlying digital foundation, it is transformation projects that we are getting. And you need to have people with skills who can understand the entire stack for us to deliver a seamless experience and good products to our customers. So how do we define the skill sets? How do we make our people fungible in terms of the skills they have so that they can play their part in the delivery across the stack? So the other part is if you see the skill set definitions, we started understanding our customers, what skills they need. And we aligned our skills definition along with that, which helps us to recruit directly, train directly and deploy to the requirements of the customer. So that's another thing which we have done. So we sharpened our focus in terms of how do we get talent. And obviously, when you are hiring such huge volumes, which we have -- I mean, every quarter is kind of the highest quarter in terms of hiring for us for the last few quarters. So when you are scaling up so fast, unless otherwise you were back-end support, you deploy technology in the right way and reduce the cycle time and hiring and onboarding people, it's never going to scale up to the requirements of the organization. So we have a platform right from somebody raises a request and how do we search the 1 million CVs that we have are from the channels -- direct channels from where we get CVs, and how do we match, compare and then give it to the technical teams for their interviews, and then do the selection process and issue the offer letter and onboard them. So the entire process is digitized. And this is something which has held us in good stead during COVID when physically calling people and interviewing them has become very difficult. So I mean we -- I mentioned many, many leaders talked about the new frontiers. So we have created 20 new global centers. In India, we created 4, which is Lucknow, Madurai, Vijayawada and Nagpur. Similarly, we created 9 locations in the U.S., which are not the prime centers, but smaller cities like Sacramento, Hartford, all those, which not only gives us access to the talent pool in the geographies, but also possibly give us a bit of a cost advantage, too. And then we are scaling up our operations in many countries. We started Mexico, Guatemala, Costa Rica, Brazil, Poland, Bulgaria, Romania, Lithuania. So we have really in every geography now we have presence in terms of, I mean, hiring people. And I will show you -- so this is a very interesting thing. Now everyone is fishing in the same pond, right? I mean there is only so much of lateral talent that is available. So I mean in India, if you look at, the engineering graduates are -- roughly 1 million of them, they pass out. Out of that, the cohorts that -- from where we hire possibly is around 250,000 to 300,000, which is compared to science -- information science, electronics and communication, those cohorts. I mean if you look at last year, the top 5 companies have hired around 400,000. So obviously, there is a mad rush for talent, even at entry level. So we started -- I mean, this whole thing -- program called TechBee was conceptualized 5 years back. We asked a group of professors to help us in terms of how do we take a 12 standard kid and train them for 6 months, 9 months, 12 months, depending upon their recommendation to perform some of the roles what we have and onboard them. And after they are onboarded, how do we help them in their higher education? So it's a work-integrated learning program, what we have created. We started with a small cohort of 80 people because we don't know how these kids respond to so much of pressure of work and education parallelly, what kind of psychological problems they might have. So then next year, we increased to 140, 300. Last year, we recruited 4,000. And this year, we are recruiting 8,000. So if -- and parallelly, we are also enabling them to do their graduation from any of these, which are currently partners with us. They offer a 4-year BS Engineering or data engineering to these kids. And they -- we provide 6 months classroom training and 6 months on-the-job training, and then we deploy them. Now if you look at 12 standard kids in India, they're roughly around 120 million -- sorry, 1.2 crores, kids who pass out of 12 standard. Even if I take a 30% who are matched background, that's a good 350,000 kids are available for -- sorry, 3.5 lakh kids are available who can qualify for this program for us. So that's a 10x bigger pool for us. And the other advantage, what we get is once they are with us, not only they are delivering work for us. They stay with us for 4 years for their graduation and probably another couple of years after that. So we will have a very stable cohort both in terms of education. And the great part here is -- I mean, you have seen how the skills are changing, right? I mean technology paradigm is changing so fast. And that changes -- those changes, we can plug it into their curriculum, right? That is the understanding what we have with all these institutes. So they will learn the skills that are required if we can update our partner institute so they will come ready-made for us, whether it is cloud or cybersecurity or IoT, any of those skills. So this -- we not only started in India. We have done that in U.S. That's the reason you see Purdue and Southern New Hampshire Universities here, right, and Macquarie in Australia. We are doing in Australia and New Zealand. So we are doing in Sri Lanka and Vietnam. So globally, we are deploying this, which we believe can give us the scale and the differentiation terms of the skills. Yes. And one -- if you look at the technology and business research report, which has gone into the details and very, very rightly identified this as a long-term vision, but can give near term effects, yes. So these are the global centers. I mean you can see the New Vistas presence. Pretty much in Eastern Europe, Latin America and North Asia as well as India, we have these delivery centers. So our skills availability and sourcing is very global. And what has it delivered to us? I mean if you look at localization in each of the geographies, in the past 3 years, we moved from 70% to 89% in Asia Pacific. We are not transporting people. We are hiring locally and being a very local organization. In Europe, it has moved from 60% to 81%. U.S., it has gone from 67% to 71%. And as I said, we have a huge amount of scaling that is happening that has helped us in terms of -- sorry. So deploying -- I mean, whatever requirements that are there, our deployment has increased to 42%. And we are doing well, but we are not proud of this number. We should do much more, as C. Vijay mentioned in the morning. So as we move forward, I think we will increase this cohort also. A significant part of it will be TechBee for us on this. Yes. And the external hiring also, we have a very, very clear strategy in which we are trying to acquire. One is the location-dependent hiring, all the New Vistas hiring what we are doing, is pretty much delivered from there, the New Vistas locations. And if you look at -- this is a very interesting thing. I mean way back in 2015 itself, for a bank like ING, we have conducted hackathons and recruited teams, not individuals. So if you really need scale, if you really need collaborative skills among people, which is very important in today's world, I think this hackathon way of hiring will help us in terms of scaling up much faster. Yes. So a lot of people have this question, right? I mean what is your policy on return to office? So we are definitely pivoting to virtual-first hybrid operating model. So if there is a customer who is mandating -- a country which is mandating, we have to follow their mandate, right? So based on their requirement, if a customer says, "I need all the people to come to office," we have choice. If a government says, which today we are seeing many of the governments are saying, by 1st July or 1st September, people should start working from [indiscernible]. So we are working along with NASSCOM in terms of trying to sensitize them. But if they mandate it, we don't have a choice. So that takes the primary approach. And we have categorized our roles in terms of 3 different types. One is those roles which need to work from office only. Like our engineering services, we have a huge dependency on labs. People have to come to work in the labs. So we don't have a choice. So -- or if there is a data privacy requirement, if there is a security requirement, so we are going to make the roles mandatory from working from office. And then working from home, there are roles which doesn't need -- we are -- very clearly, our policy says we will identify them and allow them to work from home. And there are -- wherever collaboration is required or customer interaction is required, they need to come to office. It can be a one day, 2-day kind of -- per week. So that we can do. And these role categorizations, we have identified 20 parameters. Some of them are nature of interaction with clients or other team members. As I mentioned, privacy and data, infrastructure requirement. So any of these things, if they are required, obviously, we have to call the people to office. Yes. And I mean when we are scaling up so fast, adding almost 20%, 25% of the people every year, we need to have a robust leadership also in place. So we have a leadership succession planning exercise. We identified around 500 leaders based on a framework called criticality -- credible capacity critical -- sorry, sorry, criticality and risk. So based on that, we identified 500 current-generation leaders and another 600 next-generation leaders, and we are giving intervention required to them in terms of how do -- whatever rough edges they have, how do we make them rounded in terms of giving them roles, our executive education, our coach/mentor so that we have a robust pipeline. It's not a static one or a one-off requirement. It will be a continuous one, what we are going to do. And the proof is -- I mean, if you look at our top 30 leaders, we have seen only one exit in the last 3 years. And even in this next 500 leaders also, our attrition is somewhere 5.9% to 7.7%. So we have a very stable leadership, which is helping us in terms of scaling up and delivering to the requirements of the customer. Yes. That's all I have.

Let me get started. Pretty simple session today. I'll start with a few strategic objectives, look at our performance over the last 3 years. I'll spend some time on what the emerging demand trends are and what the market opportunities are, follow it up with a few elements of our business strategy, talk about sustainability and what you can look forward to. So 5 key strategic objectives. First and most important is leadership through differentiated services and products. As Roshni said, HCL Technologies pioneered 3 of the 5 global IT or technology sourcing segments: the engineering services, the infrastructure services and production platform. So innovation is in our DNA. And as we continue the path forward, even though we have strong leadership and recognition in several areas, we are constantly looking to innovate on our service portfolio, how can we deliver differentiated value to our clients, how can we be different and win big. That's always been our focus. So innovation running into our DNA is a very important element. And at this time, when cloud is the biggest demand driver in the market, I see tremendous opportunities to differentiate ourselves. Starting with integrated services, integrated solutions, 360-degree partnership ecosystems, automation, solution accelerators, there are numerous opportunities to differentiate, and our #1 strategic objective is to demonstrate leadership through innovative and differentiated services and products. The second objective is really all about talent, to be an employer of choice in the professional services segment across our chosen geographies. We're already recognized by folks as the #1 professional services firm for the best places to work. We want to continue that leadership. HCL is built with the DNA of entrepreneurship. The passion of the people, the multigenerational talent that work for us who find the purpose. Starting from baby boomers to the millennials, to Gen Zs, we have 5,000-plus people who are born after 2005 who are in our workforce. These are amazingly talented, very creative, highly energetic and enthusiastic, very bright talent who are really willing to change the world. They come to work with a great purpose and great motivation to change the world. This is the TechBee program, which is something -- if you meet them, you get so much energized about what you can do in life. So we want to be an employer of choice for the multigenerational talent. We want to be the company of choice in the professional services firms. The passion of our employees is one thing which amazingly differentiates us. When customers visit us or -- they don't visit us these days so much. But even in a virtual interaction, they always go back. They always ask us the question, "We saw a zing in everybody who participated in this session. What are you doing different?" This is something we are very proud of. The passion and the empowerment our people have makes us an employer of choice. We have had an amazing stability in the leadership. Among my top 30 leaders over the last 3 years, 1 person at attrited. That is less than 1% attrition in the top leadership. This is something unheard of in the industry. So all of this ties in so well for our clients to entrust very significant responsibilities to execute. And that's my third objective, to be the preferred digital partner for Global 2000 enterprises in our chosen markets. These are the big spenders. 70% of the tech spend, it's $1.5 trillion, 70% is in the G2000 enterprises in chosen countries. There are 15 countries which contributes to 85% of the global tech spend. These are the markets we are focused on. These are the clientele that we are focused on, where we want to build strategic relationships. We want to be selective. We want to be very purposeful in pursuing our clients. And it's not about a client relationship. It's how can we become a strategic partner for our clients. How can we broaden and deepen our relationship with large clients is one of our strategic objectives. And of course, these 2 dimensions, employer of choice and to become the preferred digital partner for Global 2000 enterprises, is something where we still have some journey to go. One of the things my clients tell me, HCL seems to be the best-kept secret in the industry. You need to do a better job telling your narrative, telling your story. So we are on the job. We are going to significantly focus on our brand. We have Jill Kouri, who joined us. Jill, why don't you get up? Jill joined us as our Chief Marketing Officer last year, and she's on a mission on the brand transformation. The next key objective is to really weave ESG into our business strategy. Whether it is net zero, diversity, equity, inclusion, how can we weave it into our business strategy? It's about the solutions that we can offer to our clients. It's about localizing. It's about how can we be purposefully contributing to the communities that we operate in. All of that plays into our ESG strategy. And we are not looking at ESG in isolation. We want to weave this into our business strategy. And of course -- and on ESG, I do want to call out Santhosh. I don't know where Santhosh is. Santhosh joined us last year as Head of ESG and sustainability practice. He's pretty well-known in the industry for his thought leadership on ESG. And of course, if we do all the 4 of them well, which we have done very well in the last few years, we want to deliver the top quartile TSR in the near term. Over the last 10 years, HCL Technologies delivered the highest TSR among Tier 1 Indian service providers. This is something we are very proud of. This is a responsibility we take very seriously, and we are very committed to deliver top quartile TSR. This has a couple of metrics that we are very diligently continuing to focus on: number one, to organically grow the business, to be the best in organic growth, to be very capital efficient and to sustainably increase our profitability. These 3 measures, with all the focus that we have, will continue to deliver top quartile TSR for our investors. Just getting into the performance over the last 3 years, FY '19 to FY '22. We have reached $11.5 billion revenue milestone, which is a 10% CAGR over the last 3 years, including the pandemic year, which was in between the '19 and '22. What's very important is the digital share of our services has gone up from 18.2% to 34.5%. We have been consistently publishing our Mode 2 revenues. Mode 2 had called out 4 key service offerings, which we embarked in 2016, digital and analytics, IoT works, cloud-native solutions and cybersecurity. But over the last few years, we have built a lot many Mode 2 services. One striking example is the digital engineering. Earlier, we just had IoT works in the digital engineering. But we have a set of offerings in digital engineering, which is today contributing to close to 30% of our engineering services revenue. So combining that to our Mode 2 revenue. And in the infrastructure business, which is a digital foundation business, on the workplace, there has been a significant increase in what we call as consulting and experience services, and that's really accelerated during the pandemic. As the world has become so much virtual, the complexity of the central workplace environment management is significant. And we have a set of services which is growing very fast, and that contributes to close to 16% of our global workplace revenue. Just adding these 2, digital engineering and the experience and consulting services, to the Mode 2 services -- Mode 2 offering, it's 34.5%. It's still not the entire digital share. It is the 6 services which we have classified as Mode 2. And this is also reflecting in our client relevance. Our $100 million clients increased to 16, and the 50 million clients increased from 29 to 43. Direct correlation to the relevance of our service propositions and our execution in the market. That's about the headline performance. Now what you see here, and the reason I marked it in red, this is an opportunity for us. Our employee cost as a percentage of revenue has increased from 48.5% to 53.9%. Of course, this has been accentuated due to the current talent demand/supply situation in the market. But we also have a big opportunity. All our analysis over the last few years shows the difference between the best-in-class cost structures and our cost structures is all around number of freshers that we hire or number of freshers that are in our system over the last 5 years, 10 years. That whole journey is a very important lever in this industry. And for us, that's a big opportunity because we were underindexed on the fresher absorption. And over the last 3 years, we've almost quadrupled our freshers from 5,900 to almost 23,000 freshers we've scaled up. But this is really scratching the surface. We need to be able to hire and deploy freshers to the extent of attrition. Probably this number has to double maybe a year, next year and maybe the subsequent year for us to reach the right cost structures compared to the best-in-class cost structures in the industry. One of the initiatives that we took, and very diligently we drove, that was establishing new business locations. This is really not a cost strategy. It is all around stability of workforce in such a very high attrition type of environment. And we've scaled up 20,000 people in 4 big -- 4 small locations in India, which is what we call as New Vistas in India. And nearshore has been a very important strategy. While clients are moving a lot of work from onshore to offshore, they're equally moving work from onshore to nearshore. Our nearshore increase almost doubled over the last 3 years, be it Mexico, Guatemala, Costa Rica, Romania. All of these countries has scaled up significantly. And in the current environment, with a lot of concerns around geopolitics, I think nearshore is really becoming a very strong strategic lever from a global sourcing perspective. So these 3 levers are just indications. We need to significantly scale these 3 levers as an ongoing business strategy to align our cost structures to be the best in class. Now in terms of the earn metrics, our earnings per share grew 10% -- 10.8% CAGR over the last 3 years. But the story is not complete without talking about our operating cash flow. Our operating cash flow grew 21% CAGR over the last 3 years. There is nothing that can beat our operating cash flow performance over the last 3 years. And of course, we've heard we've increased our payout ratio, which was 50%. It's 88%. We promised to have a consistent payout policy. We've declared a payout policy. And our market cap has grown 20% CAGR over the last 3 years from $20 billion to $42 billion. So this is the high-level scorecard. Now I want to call out a few things which are very important to communicate about our financial year '22 from a services business perspective. Digital business, which is our consulting, application services, data and analytics, this has been growing quite well over the years. We've invested organically to build significant capabilities to enhance our digital capabilities. Now it feels like we've arrived in the party at the right time. When there is so much happening on digital transformation, we are in the market. We are with our clients helping them in their digital journey. This business, which is our application business, contributed to 50% of the incremental revenue that we delivered in FY '22. This has never happened, right? If you take the last 10 years, it's either the engineering services or infrastructure services which added the highest incremental revenue every year. This year, because of the consistent increase in our Mode 2 revenues in the application services, we added $650 million plus in our application business. Now digital foundation contributed to 31% of the incremental revenue. In digital foundation, we've had a consistent strategy to remain asset-light. Today, there are a lot of market opportunities where clients want to exit their data centers, clients want to exit their capital investments or avoid future capital investments. There are a lot of ECP case in the market. We have, in a disciplined manner, avoided getting into data center buyouts, asset buyouts and CapEx investments. So this has been a strategy. But I think given the current market opportunity, we have disciplined execution to really focus on -- continuing to focus on an asset-light strategy. Our engineering services also had a stellar performance, contributing to -- it's 16% of our revenue share, contributing to 19% of the overall revenues -- incremental revenues in FY '22, largely driven by digital engineering. You will hear about these 3 service lines in great detail from the respective business leaders. Of course, digital process operations is a very niche offering. We only focus on integrated deals. We focus on solutioning for existing customers. It contributed 2%, and there was a 2% offset due to the professional services business that we exited as per the plan. The second element I want to call out is increasing focus on accounts with large tech spend. This strategy has delivered significant results. 85% of our growth, which is all the 85% of the incremental revenue, came from 50 accounts, led by client mining, strong digital propositions in 35 existing clients and 15 new accounts. This is a strategy that we've been driving. And if you look at one of my strategic objectives, it's to significantly enhance our presence in large tech spenders, and this strategy has played out extremely well. And 40 of the 50 accounts are F500 or G500 accounts, which we are very proud of the relationships that we are building. They are becoming multidimensional relationships, multiservice line relationships. And this has really helped us deliver the industry-leading 5% plus CQGR for the last 3 quarters. We've had phenomenal market recognitions. We've talked about this in the past in the public cloud IT transformation services. In the very first Gartner Magic Quadrant, HCL was the only India heritage service provider to be rated as a leader. One point I want to highlight is this public cloud IT transformation service, we didn't get into the leaders quadrant because we had a lot of strength in infrastructure services. A lot of you think it's because of our infrastructure heritage we got to the top slot. Of course, infrastructure is a big capability that plays into cloud, but it is our industry solutions that we have built with the ecosystem partners, whether it's Google, Microsoft or AWS and other ecosystem partners. And the offerings that we've taken to customers, the way our organization is structured, all of this contributed to our leaders quadrant positioning in the Magic Quadrant. It's app modernization, data modernization, our product engineering, a lot of conversion of on-premise to cloud software solutions, digital engineering. It's the combination of everything that we have done over the last few years which has helped us get to the leaders quadrant in the public cloud IT transformation services. Because if you see the other 2 people who are in the leaders quadrant, they're global consulting companies. They don't have a digital foundation heritage. Of course, we're being treated as a leader in application modernization and data modernization in Forrester. Many very good recognitions. Engineering services, Vijay Gantur will talk about it. We've been -- we are the best recognized engineering services provider in the world. The top R&D spenders in the world rely on HCL's engineering services to further their business strategy. It's also replete with a number of corporate awards. Some of that, we will cover in Apparao's session about the professional services firm. Forbes in 2021 rated us as the #1 employer among all professional services firms globally. This is an amazing recognition. And I do believe a lot of this has happened because of the work that we have done, either the passionate employees, empowerment and more importantly, how we dealt with our employees during the pandemic. The amount of care and the leadership intensity with which we executed everything that we have to do for our employees earned us this recognition to be the #1 employer among all professional services firms globally. Of course, we are a top employer in 17 countries, a number of great recognitions on ESG as well as overall corporate citizenship. Now I want to spend a few minutes on the emerging demand drivers in the market. Some of this is well-known, but I'll touch upon it. Technology transforms business, not just enables. I think all of you very well recognize it. But what's also happening in this process is there is a shift from legacy and boutique vendors for scale digital programs or cloud modernization programs. Customers are looking for stronger partners with long-term viability, with investments in digital capabilities, with cloud capabilities as a very important theme, and there is a significant market share shift that's happening from legacy and boutique vendors to providers like us. The third element is the most important element. 50% of the tech spend is going to be on cloud. It's -- whether it is consumption, whether it is migration, modernization, data, industry solutions, converting your on-premise applications and software products into digital engineering solutions, all the digital engineering solutions, whether it's AR/VR, whether it is industry 4.0, all of them rely on cloud as the platform. So 51% of the global tech spend is expected to be on cloud by 2025. This is a mega trend and providers who have the right capabilities, right organization construct will capitalize on this. The fourth element is again the -- how business IT operating model is evolving. Traditionally, business and IT had a little bit of a distance in how they operated. But with the emphasis on digital, emphasis on the velocity of changes, the operating model is becoming what we call as product operating model or business IT operating model, where the business stakeholder, somebody who's running supply chain finance or supply chain -- or somebody who's running, let's say, HR or the retail banking, those leaders are part of a team which is running a DevOps/DevSecOps quad in a very agile manner. And this trend is something which we caught on very early. A lot of our existing clients, we helped them migrate to a business IT operating model or product operating model. And one acquisition that we did, Strong-Bridge Envision, this was for organization change management. This IT operating model is less of a technology change. It's more of change management in terms of how business and IT works. So the change management capability that we acquired has come extremely handy in us driving this big change in a lot of our existing customers. It has helped us displace some of the traditional incumbents in Fortune 100, Global 100 and Global 500 companies in the last 2 years. AIOps, while customers are maniacally focusing on digital transformation, they are constantly looking for efficiency and cost-out to fund the digital transformation. That is where the automation platform that we have for managed services, whether it is application managed services or infrastructure managed services, comes in very, very handy to deliver the outcomes our customers desire. Ecosystem, I talked about it earlier, is going to be a very, very important influence in the global tech spend. It's not just the hyperscalers. Hyperscalers contribute to a big part of the tech spend and a lot of cloud work happens on hyperscalers, but it is the SaaS providers, technology OEMs, very niche, unique product vendors. And our partnership with these vendors is going to be a big differentiating aspect to kind of capture some of the demand. Of course, global sourcing and engineering services, which Vijay will talk about, is something -- it's a big market. There has been a hesitancy to do global sourcing, but the pandemic has just lifted all the wheels on that and it's really taking off. Global sourcing of engineering is taking off in a big way. What's also unique is -- may not -- you may not have kind of recognized this. The digital economy is among the top 3 verticals in the U.S., right? Digital economy is all the cloud providers, all the technology OEMs who have a role to play in the digital economy. The fintech companies, the health tech, a lot of business models which has evolved with technology at the core of their overall proposition, I think that's a big, big vertical. And we are doing a meaningful work in this vertical. It contributes to 18% of our revenue just next to our financial services. And of course, increased acceptance of offshoring in a talent-constrained world. Offshoring and nearshoring is also another big demand driver. With these 8 key demand drivers, I want to focus on what are the market opportunities for providers like us. It's a big market, $1.5 trillion, growing at -- Gartner predicts it will grow at 9.5% CAGR over the next 3 or 4 years. The biggest element in this is cloud transformation. Close to $900 billion is going to be spent on the ecosystem, leveraging the ecosystem for continuous innovation, and their operating models are going to be reinvented around this. Application and data modernization is a big spend area, where the operating model transformation, which I talked about as a big demand driver. And the value chain transformation, migrating a lot of applications to cloud, modernizing them and driving a lot of innovation and value chain transformation is going to be a big spend area. Security is something which all of you are aware. Again, $100 billion spend on the services. Digital engineering is again a big spend. It's again $100 billion outsourced R&D spend around digital engineering. Workplace, given the hybrid operating model, the consulting and experience services in workplace is becoming a very, very important market opportunity. And of course, products and platform. We are a niche player there. Commerce, marketing automation, AIOps platform, which is really built on top of our DryICE, and some of the acquired products. And digital and analytics. We have one of the best data warehousing -- hybrid data warehousing product in the world. The fastest cloud data warehouse product is Avalanche, which one of the acquisitions that we did about 4 years ago. That's part of our products portfolio. So there is tremendous -- there is some overlap in these opportunities. If you add up all these numbers, it will be more than $1.5 trillion, but that's because of the overlaps. So I think as a service provider who's strongly playing into each of these themes, we are looking at a multiyear growth cycle, and we are well-positioned to capture the market share in this space. If you look at our business segments. IT and Business Services, which is 72% of our revenue, it's a $500 billion market opportunity. And the 3 or 4 themes which will drive our leadership and growth: First is leadership in cloud transformation, whether it is infrastructure or application and data modernization. Pioneer in the integrated services. You would have heard me talking about in the analyst calls about the number of integrated opportunities that we have won. There are numerous examples. Now we have at least 20-plus $100 million-plus deals over the last 2 years, which are all integrated opportunities. I think the operating model, the managed services construct, the automation that we bring in is really a powerful differentiator for us to continue winning integrated services. And on the application and consulting side, we have achieved a very unique position as a differentiated challenger. We are able to challenge the status quo with a lot of traditional incumbents and win significantly in this market, which has helped us grow the fastest in the application space in the last year. And on the digital process operations, we continue to be a very niche player with either an integrated deal or an opportunity in an existing client is where we are focused on. So this business grew 14% -- 14.5% last year and a 3-year CAGR of close to 9% including the pandemic year. Engineering Services. The most striking aspect of HCL's Engineering Services is 60 of the top 100 R&D spenders are very meaningful relationships for us in the engineering and R&D services. And a lot of them are choosing us as a digital engineering partner, which has driven significant growth in the Engineering Services, close to 16.8% growth year-on-year and 7.5% -- 7.1% CAGR, including the pandemic year. That's a pretty good performance. We've also created certain unique propositions for asset-heavy industries, which has helped us recover from the pandemic close much faster in the asset-heavy industries. And production platform, it's been a journey. We've grown 24% due to various -- some of it is acquisitive. It's a -- the market that we address is about $100 billion, and we have a very sharp strategy on how we want to approach it moving forward. Now what are our growth priorities? I think cloud is at the core of all our propositions, whether it is digital business, whether it's consulting, application services, data and analytics, the digital foundation services, digital operations and digital engineering. All our service lines are gearing up or have geared up to really capture the cloud strength. I think this is one of our biggest focus areas to really be behind the tailwind that's happening to the cloud as the biggest market opportunity. The second element I touched upon, the strategic program to deepen relationship with large clients. Whether it is G500, F500, big R&D spenders, just focus on them and really maximize what we can deliver as value to these clients. There are a few countries where we have focused on in the last 3, 4 years. Germany, France, Australia, Canada and Japan as focused countries, and 7 new frontier countries where we are focused on. Here, we're already seeing a meaningful traction in all these countries. Of course, we have made investments into these geographies so it's going to take some time for it to deliver the right bottom line benefits that we want. But we are in these markets for long term, and we're doing all the right things to really grow significantly ahead of our overall growth rates in these markets. Partner ecosystem is a cornerstone of our growth strategy, whether it's hyperscalers, OEMs, SaaS providers, niche solution providers. It's a very important strategy. And the client base that we have and with our intent to become a chosen digital partner with -- for the Global 2000 companies, cross-sell and upsell becomes a very important thing between IT and business services, engineering services and P&P. We have an amazing client base in P&P. And with even a very small effort, we've been able to see significant synergies. There are at least 2 Fortune 100 companies in the U.S., where with very minimal effort, we could get into the short list for considering for 1 of the 2 mega deals that are happening now. So I think the focus on the cross-sell is going to give us a big bang for the buck as a part of our overall growth strategy. In terms of profitability, the pricing is the most important lever. Now pricing is, of course, getting more for all kind of -- both traditional and digital work, trying to get better rates. But it also means trying to drive more automation, drive more nonlinearity, leveraging automation, different pricing models, solution accelerators. I think today, the charging mechanisms are significantly evolving. Even managed services, which was being priced on a per incident basis or per device managed, now there is enough thought leadership that's happening, where we're getting paid for the number of incidents that we avoided. It's a slightly difficult concept to kind of bring it together, but there are mechanisms by which we can get paid for the number of incidents that we avoided. I think there are many models which are evolving, which is going to be -- which is going to bring a little bit of nonlinearity in how the pricing happens. I think that's going to be a very important lever for profitability, and we are ahead of the curve on that. Global delivery model from 20-plus countries, onshore moving to nearshore, onshore moving to offshore. We've built very strong capabilities in 20-plus countries. And we've also built a number of centers in the U.S. and Europe. Even the bigger geographies, there are certain low-cost locations where we've scaled up in the last 3, 4 years, which is, again, going to be one of the profitability levers. We wanted -- as I said earlier, our biggest cost structure reset is going to happen by tapping the largest talent pool, which is the freshers, TechBees and alternate talent. Whether veterans or returning moms or beginning into the workforce is again an important lever for us to ensure stability of our workforce and also create a long-term model, where the pyramid structure is going to be aligned to the best in the industry. Cross-sell and scaling up a lot of existing accounts is again a big profitability lever, which we are very focused on. Of course, the most important or very paramount importance is our sustainability strategy. We call it as act, pact and impact. We believe to create impact, we need to act in a responsible and sustainable manner to maximize the resource utilization. We need to do this in collaboration with multiple stakeholders to amplify the outcomes that we can generate. That's the aspect of pact, really, collaborating with all the stakeholders to deliver the impact, deliver the right business impact that can be achieved by act, pact and impact. Net zero, diversity and inclusion, a number of initiatives. We have a very, very clear charter. We've defined the material dozen. 12 of the 25 sustainable development goals have been identified. We're tracking 100-plus metrics to drive sustainability within the organization. And we are also leveraging ESG to create solutions. Like our engineering services team is focused on building sustainable products for our customers. Like you saw the COO of Beyond Digital talking about, one of their biggest strategies is to become a sustainable business, and we are playing into it. We are helping our clients in their sustainability journey. And we continue to be well-recognized on this front. For example, in Sustainalytics, we achieved a ranking of 23 among all the software and services companies. A number of good recognitions. You will see more and more of this coming. But more important is we want to weave ESG into our overall growth strategy. Now looking ahead, there are a few points I want to make. One is our services mix will align more to the spend pattern of the market. We were a little bit overindexed on the infrastructure side with the rapid growth and the incremental momentum that we are seeing in our Application Services business, which is our digital business. We think our services mix will become more aligned to the spend patterns of our clients. We are going through a product portfolio transformation. You will hear more about that as we move forward. Entry-level hiring is a very, very important metric for us. Hiring the top talent, making them very productive, deploying them in the digital work is the single-minded focus for our delivery organization. And this is something we want to scale multifold. We've taken thing in only baby steps. There is a huge opportunity here for us to align our cost structures to be best in class. And of course, as I said earlier, we are one of the best-kept secrets in the industry so we want to drive greater brand awareness. We are going to launch a plan on how we can achieve this, and you will hear more about it. And return metrics is something which we are sharply focused on. The capital deployment is a very, very important criteria in every decision that we make. We want to be delivering the best organic growth in a most capital-efficient manner and in the most sustainable profitability improvement strategies. So this is what I want to close my session with. I feel very confident of delivering the best organic growth in the industry, especially among the Tier 1 providers, with all the strategies that we laid out, our sharp focus on the top spenders. With the mix of capabilities that we have and the leadership that we've demonstrated by innovating our differentiated services and products, we feel confident of delivering the best organic growth. We will continue to improve our return metrics, and we will improve our profitability in a sustainable manner. With that, I want to close. Thank you very much.

[Audio Gap] in my session and the subsequent sessions is really take each line of business and talk a little bit more in dimensions of what these trends look like for each of our lines of business. Of course, we're starting with digital business, which represents our consulting, application services and data analytics services business. CVK mentioned this, this business has grown [ quintuple ] since 2019. And last year, FY '22, 50% of the net growth revenue came from the growth of digital business. When we met in 2019 in the [ Taj ] for a similar session, I talked about the fact that the Mode 2 services within digital business, which was all about application modernization, data analytics modernization and helping enterprises adopt scaled agile journeys was growing even then, coming into 2019. We had massive growth and tailwinds because of differentiated propositions in the Mode 2 part of our digital business. And what's changed in the last 2 years, and the dimensions of the change, created some very unique opportunities for us that allowed us to kind of grow overall in digital business, becoming really the undisputed challenger, as CVK called us, in the applications services, in the data analytics, in the consulting services space. There have been a lot of surveys that have tried to quantify these dimensions, right, the dimensions that you heard in the morning. This is the latest one. I mean, we did one about a year ago where this digital acceleration was quantified in each of these dimensions. And I like this one because it sets the tone for the rest of my session. This is a McKinsey survey from last month. And if you look at the 4 things, what they've done is really taken 100 enterprises across industries and taking the top quartile performers in each of these industries and how these performers have prioritized digital acceleration in these 4 dimensions. We can clearly see the 4 dimensions play out to what CVK was talking about. Number one, organizations are now creating strategies that are driven by C-levels that are more comprehensive. That are covering every aspect of the business, not just the front end of the business or not just the commercial end of the business or not just the cooler parts of the business, but comprehensive strategies that are rebalancing their investments and focusing on digital transformation. Number two, organizations are becoming more insights-driven, scaling data, analytics and using insights to survive and thrive. Number three, progressive enterprises or organizations that are top quartile in each of their industries are accelerating cloud adoption. We heard about that in the morning. And fourth, and not the least, is operating model transformation that CVK talked about. And I'm going to really dimension each of these further in how they've played out for opportunities for us that were quite unique between 2019 and now. As I said, some of these were happening in progressive enterprises, largely transformation-driven digital programs, so what was happening in 2019. But there are 3 things that have changed the dimensions of deals, opportunities and what's created this growth for us, right? Operating model transformation, let me double click this a little bit. I'm going to do more of this in the next slide. So CVK talked about organizations and enterprises which are progressive, have realized that they want to be in a continuous modernization or continuous enhancement journey, right? Business process can't be just enhanced or modernized once a year, which is how the waterfall world, how the traditional world work. Technology was adopted and planned for adoption once a year. But enterprises have learned, especially from the progressives already, B2Cs were already down this journey, that they need to move to more agile operating models where business IT vendors are constantly evolving the use of technology to deliver business process to transform business value. And that's created some very unique deal structures. Vendors like us who are very strong in modernization of applications and creating scaled agile journeys were brought in to really rethink how -- I think I heard somebody talking about discretionary and non-discretionary spend. But managed services of legacy applications, which used to be non-discretionary spend, and modernizations, which used to be discretionary spend, is actually getting more and more morphed together because enterprises want to really move to this continuous operating model, right? So this is just one dimension change. Integrating infrastructure and application services is another dimension change that operating model is causing, right, which is enterprises wanting vendors and partners that can understand the full stack and helping them to move to a more product-aligned operating model. Cloud adoption is everywhere, CVK talked about it. We have another session later part of the day. But a huge part of cloud adoption is really rebuilding the enterprise business on cloud. And that means modernization of applications, modernization of the underlying data, creating new integration platforms, really also creating new organization structures that bring IT infrastructure, applications and data teams to deliver together to business. And so those created some very unique deals, and we'll continue to drive markets in very different direction. And the last is really value chain transformations, right? Every industry started to look at its value chains and say, what differentiates me and where do I need to increase velocity of change? What differentiates me can't be changed just once a year. I need to constantly discover and reimagine my value chains, what differentiates me, and be able to deliver to those value chains with modernization at the course. So some of them, obviously, that are more cross-industry omnichannel commerce, servitization, supply chain transformations, these are happening across industries, but I'm going to double click a little bit within industries what's happening, where differentiation value chains have gained velocity and are really driving modernization journeys that are very different from how these were done previously. So I talked about some of the common imperatives across industries. But if you look at industries and industry specific, we take any industry today, every element of business process is getting reimagined, especially one that differentiates that particular industry. So banking and financial services, reimagining -- telebanking is reimagining online banking. People are going into the branches largely for advisory and consulting and getting all the work done actually online. Open banking is also driving new kind of KYC modernization because customers are not coming in physicals form. So how do you drive KYC using image analytics and AI to make KYC more modernized, right? Sustainable lending. So a huge amount of change in every aspect of financial services is creating value chain transformations. Manufacturing, we heard some from our customers, and CVK talked about it, Industry 4.0, sustainable manufacturing, supply chain transformations. A lot of manufacturers are actually becoming more B2C and not remaining B2B. This is happening -- actually, it's been happening for a while in retail and consumer goods industries, right? They were on B2C journeys which were omnichannel, and that has only compounded during the pandemic. Their online businesses have sometimes quadrupled and so they have to think about dynamic pricing. Their pricing models are changing, their omnichannel experiences are changing. And as I said, the hyperpersonalization has taken new shape in retail and consumer goods. We're seeing life sciences and health care, which was a very regulated industry, adopt digital acceleration because patients are not always going to the hospitals anymore. In the most pandemic times and crisis times, Delhi Health searched 300% in some of the largest health care providers in the U.S. and Europe. Next generation HIS systems, claims and processing has now become online. So massive transformation across life sciences and health care verticals. And telecom, again is the backbone to all of this digital transformation. Driving new products and services with 5G, creating new pricing models and really driving more online business both as service providers and product providers, is creating, really, value chain transformations. So how have all of these 3 things helped us and play us out with our differentiated products and service offerings? We really, over the last 5 years, brought 3 capabilities closer and closer together. And especially in these last 2 years, we saw the ability to really create this continuous delivery model through capabilities that were bringing consulting and design to help enterprises reimagine their value chains in their industries. But then being able to deliver those using modern applications, whether these were consumed from SaaS providers or modernized on the cloud with composable models, right? So our application modernization capabilities were really, really well used in driving transformation not just through reimagination and design, but continuously deliver those through modernization of the platforms. We heard [indiscernible] talked about their CX platform, which was reimagining how they engage with their customer and delivering it using consume SaaS and composed with integration and online sort of composability. And finally, data and insights coming closer. Data is becoming the D in digital, right? So bringing data and making it a value chain itself. Helping enterprises, reaping their data structures, building data platforms that are elastic, always available, consumable, ensuring that the data lineage is strong and relevant, and data is always clean so that what you're analyzing and what you're also using AI for is based on strong foundations is a huge part of the modernization that is happening. So if you see the capabilities that we've built over the last 5 years, suddenly, in CVK's terms, we're very relevant to the party that was happening last 2 years, right? And at the center of it, you see ASM 2.0, so we really help enterprises rethink how they think about traditional application-managed services, where legacy application services providers were largely helping them sustain existing applications, really solving minor enhancement problems and not helping them rethink, reimagine and recast their portfolio of platforms and data. And so becoming a challenger in bringing managed services or legacy applications with the ability to modernize continuously in an agile manner is really what has helped us become the challenger in the digital space, especially with application and data services. If I have to really capture our differentiation in 5 elements, number one, we've been part of the scaled digitalization journeys, which means enterprises who, even pre-pandemic, were progressive enough to move into this continuous delivery IT operating model where there wasn't a legacy managed services versus build, but continuous scaled agile journey that they were seeking across the board. And now we've seen in the last 2 years, literally every industry is trying to move to this product operating model. So our experiences, combined with our organizational change management capabilities that we acquired, are helping us define for the customers what these journeys look like, how do they adopt these journeys. And of course, in that process, how do they modernize their applications, their data and their business processes. Second, we are uniquely positioned to understand the full stack, right? We heard it in the previous session. Understanding business process and how it manifests in applications, data integration and the underlying infrastructure is something unique to us, and I think we've been able to play that out in the way customers combined application services, infrastructure services, in this operating model journeys. Three is value chain transformations through modernization. As I said, it's not just about digital strategy but the ability to execute it. We use a term called Design to DevOps. You can't just redesign processes, you should be able to quickly move it into DevOps, and that's an ongoing cycle there. How do you do that? This is across the board. Our 360 relationships and ecosystem partners have evolved quite dramatically. And I'm going to show you what that partner map looks like in every line of business, especially in our apps, integration data business, the partnerships have completely transformed, right? The players are new. Some of those players you have not heard about 5 years ago have become more significant in the industry. And how do we keep a tap of that? How do we ensure we are watching the business architecture of our enterprises? Look for those common patterns and take our bets on players and build our capabilities around them, both in terms of solutions and our talent across the world, which brings to the final element, which is the global talent build for digital business is very different. In a lot of cases, capabilities don't exist in the market, so you can't just keep hiring. You have to be able to rely on your ability to build, nurture and almost create a continuously curious organization. Because technology is changing every 3 months, every 9 months, new players are becoming super important in the enterprise at each layer. And so how are we able to build our talent through this continuous curiosity? We call it the learning index curiosity. Being able to hire talent across markets, across the world at all levels. And actually, we define talent in terms of its proficiency and not years of experience. Proficiency is becoming really important, right? Nobody cares about 25 years of experience, but how proficient you are in any given capability area. So redefinition of that is something we've done. And actually, some of this is actually now being copied or leveraged by our customers in how they are redesigning their organizations based on proficiency and the model we call [ drivers ]. So what has been the outcome? Again, we heard revenue numbers and customer growth numbers. So this is really incredible. If you look at our journey since 2019 to now, 54-plus customers, these are large significant Fortune 500 enterprises or Global 1000 enterprises, where we were delivering applications data, Mode 1 or Mode 2 services, not just renewed with us, we became a significantly increased or strategic partner in their digital journeys forward. And more notably, 66 net new customers, these were customers of either large traditional legacy application services provider, some of our peers, or digital boutiques who are good at solving one part of the problem but did not have scaled digital experiences or the ability to scale digital journeys and also really have both applications, data, infrastructure, services, capabilities to deliver to those journeys. So this is really significant, and we're going to double click on this by verticals at the end of my session and how it's played out in our customer base across verticals across the world. Talking a little bit about partnership ecosystem. You're going to hear a lot about our hyperscaler partners in Siki's session later this afternoon, and what we're doing with AWS and Google and Microsoft, et cetera, who are really the dominant cloud hyperscalers that cut across all layers of our business. So I'll focus really on the top 2. I mentioned this that enterprises, as they're modernizing, are really leveraging the large hyperscalers. But if you look at what's happening at the applications where business process manifests itself or the value chains reside, they're using very different choices of partners than what they used, let's say, 10 years ago. They are increasingly looking to consume from SaaS providers where they don't differentiate themselves. But wherever enterprises differentiate themselves, depending on the industry, they want to compose, compose meaning using integration partners like the MuleSofts and the Workatos of the world, or compose on cloud, both on the hyperscalers, using full stack and sort of custom capabilities. So increasing composability and consumability is what you're seeing at the applications layer because enterprises are redefining what's core to them versus what differentiates them and what doesn't differentiate them. So our, really, partnership ecosystem is evolving around decisions that we're seeing and business architectures across industry verticals. Data, as I said, is morphing massively, and enterprises are investing in data both in terms of creating scalable elastic data platforms and also analyzing from that data to create continuous insights and creating ML Ops, almost machine learning operations to get continuous insights across the enterprise. There's a whole term of citizen analytics where enterprise can create the right data structures and then various parts of the business can leverage data for insights to innovate in their part of the business. So if you look at our data ecosystem, again, it's dramatically shifted from 5 years to today, and especially from 2019 to now. I'll just pick a few and see what's happened in the last 3 years since we met, right? Salesforce. We used to be a huge partner with MuleSoft, which is now part of Salesforce as the integration layer, and Tableau, which is part of, again, Salesforce as the analytics layer. Core Salesforce, we were not their largest partner 3 years ago when we met. We are now their summit partner, which is the top end of their partnership. We are the only summit partner who's got to that point without acquisitions, right? So it's happened through organic build of capability. And two, the way Salesforce measures it is the number of certifications, and secondly, the number of customer successes which are rated 4.5 to 5. So across industries, whether it's in commerce, omnichannel commerce, in CX as well as aftermarket services, we've done maximum customer successes for Salesforce, and that's gotten us to this point. Adobe is a long-term relationship. Again, it's a core technology that's used for digital marketing, for analytics as well as for commerce. We are actually one of their very few partner -- advisory board partners today, so which is again driven by our capabilities, understanding their technologies and successful implementations across large enterprises. Snowflake 2019 was not even in my partnership list, the ecosystem list. Today, we are an elite partner. In fact, we are speaking at the conference next week, which is their first big conference in physical form since the pandemic. We are their highest level partner based on some of the largest Snowflake implementations across industries that are happening. So the list goes on. And by the way, as we speak, Sapphire is going on in Orlando, half of our team and leadership is there. And last night, I was listening to CK when he was doing his CEO address at Sapphire, and he talked about HCL being one of their more strategic RISE partners around the world. We also were rated by Gartner as one of the most recommended S/4 HANA implementation partners for SAP. So it's a long-term relationship, and continues to pivot and evolve on where they are becoming relevant in the digital journey. I think CVK captured some of the analysts stories. I'll just pick up a couple that were not talked about, especially when it comes to commerce and transformational marketing platforms. Again, as I said, given some of these capabilities and what we've played in the last 2 to 3 years, we were not present in many of the Gartner and Forrester commerce as well as marketing transformation surveys in the past or reports in the past. We've not just showed up, but we showed up as a leader in most of those reports in the last 2 years. And we talked about application modernization. We continue to dominate both the Forrester and other reports on players in this space. What I want to do now is really take all of that we talked about, the trends, our capabilities, our differentiation, and how it's playing out in industry verticals and our customers in each of those industry verticals. I'm going to start with financial services. Obviously, it's one of our largest industry verticals. And what I'm going to do is actually call Rahul Singh, who is the President of our Financial Services markets globally, to add a little bit more dimension and color to how our capabilities and these trends have helped us grow in financial services.

Hi, good morning, everybody. So just very quickly, to introduce financial services businesses at HCL, we are a global business. We service financial services customers, which includes banks, insurance companies, wealth management companies and even fintechs in multiple parts of the globe. As most of you will know, financial services tends to be a very domain-rich business, and the domains are where a lot of transformation, transition, innovation is taking place today. And whether it's in the front office of the institutions, it's the middle office of the institutions or the back office of the institutions, the digital transformation that's happening in the last couple of years has created huge opportunities, and we're right in the middle of that to take advantage of the savings. What we really do is that all the capabilities which are developed by our engineering teams, by the digital work, which Anand spoke about, we add value-creating layers, and that's how we then [ score with our ] customers and are able to sell the business to them. We enable them to be more innovative, to drive new products in the market, reduce the cycle time for launching new products, and so on and so forth. And I'll talk to you about a few case studies where we have been able to make some strategic changes both in our relationships as well as allow clients to be more innovative in the launches of their products to the customers. So the first case study that I have here is of a large U.S.-based retail customer. It's like about $1.7 trillion of assets, a very large retail bank servicing more than 80 million customers. And in 2019, we were not a part of the client's service provider landscape. So they came out with an RFP, and through that process, we were inducted. And the reason why they brought us in at that point of time, and I must mention here that that's exactly the time when digital transformation has just about started taking place in most financial firms. We were brought in to be a disruptor to the existing incumbents which we already had. This is a third generation outsourcer. They've been outsourcing for more than 30 years, so you can imagine that every service provider would typically be in its landscape. So when they were bringing HCL in, they brought us in because they felt that we could be a part of a disruption that they wanted to make to the incumbents. HCL positioned -- we positioned ourselves to be a more agile partner, to be able to deliver digital programs for them at scale, and they brought us in at that point of time with that intent, to be a disruptor to the incumbents. And today, we've executed massive programs for them. For example, we've been part of the card modernization journey. So we are responsible for looking at customer experience layers for new card acquisition or create underwriting and reducing the cycle time that it takes to kind of onboard new customers with them. So we are part of that platform creation in the card space. Similarly, on the loans and lending products, we are engaged with them in loans and lending in terms of business process automation and testing services, SRE and so on and so forth. So very much important part of landscape, a new customer acquired, large brand, today, contributing to over $30 million of run rate revenues for us. And in financial services, as you know, technology does not stop, so it's a continuous spend. It's like 7% to 10% of the total company's turnover goes into technology, and being part of the landscape now allows us to have a long-term relationship converted to strategic partnership. The second case study that we have here is of -- again, a new customer, acquired again in 2019, 2020. This is a global wealth manager, asset manager. So they manage assets of about $1.5 trillion, so pretty large asset manager, global in nature. So they were looking at investing and converting their technologies to be more real time. And as you know, in the wealth management industry, 365 -- 7 by 365 is requirement these days. You need to be able to upgrade your NAVs, you need to be able to give your information to the customers on a real-time basis. So they were looking at upgrading their entire infrastructure and the entire application suite and also moving to the cloud. So they brought in HCL. In fact, the Floridan RFP, which again we won, where we are now responsible for the operations of their applications and infrastructure state. And the digital operations run is what we are focusing on here. We've been able to kind of convert a lot of their toolings, et cetera, to DevOps, integrating the application and the infrastructure layer and then allowing them to then move applications to the cloud and be a part of their landscape team. Not only is this an important customer, but it also gives us a good foothold in the wealth management industry as an anchor customer. The third case study which we have here is from Australia. So as I said, our business is a global business. We do business with customers around the globe, so this was an existing customer. And at that point of time, I think 2019, about a $5 million account. This [ quickly ] transformed almost to $40 million. So CapEx improvements has happened in terms of the way we do work. So what we're doing for them, again, is being responsible for their digital transformation change. There were legacy -- basically the waterfall base, the development model. They wanted to launch new products in the market at a faster pace. They wanted to change the pace of product development and also the change of pace of the applications, putting on new applications, new products in the market in terms of technology. We've been able to reduce cycle time of new products launches by as much as 17% to 18% by reducing cycle time that it takes to new product development. We've been responsible. Right now, we are in the midst of complete payment transformation for them, so they're redesigning the payment platform. They want to kind of have payment as a platform across today's payments 7 by 365. They are real time, they are data rich, so HCL is responsible right now for the payments, both build, test and also the SRE in terms of implementation of the payments platform. And then the last case study I just thought very important was just to bring out how digital can make changes to the business model of clients as well, so the last case study is of a retail bank. This retail bank is one of the largest European retail banks present in multiple countries in Europe, and we were already a partner to them in their digital transformation journey way back in 2019. But I wanted to just emphasize as to how that digital transformation has progressed. So today, we are part of their front office in new product and new business development. So this bank bought a fintech company, and it bought a pretty large fintech company. It's not like a small start-up kind of company, but they bought a large fintech company. The company that they bought was responsible for -- or had products in the e-commerce space. They were doing lending in e-commerce. So they wanted to bring HCL in to enable integration of that startup to happen within their own setup. So we had to almost create like a start-up culture because we wanted -- the bank wanted to bring in this company, and they want the integration to happen on the technology front, but they didn't want the value of the fintech to change. So the way technology has been developed in the fintech, they wanted to retain the same as they brought the company in. But at the same time, they wanted to scale up this operation. So HCL is partnering with them right now. It's a real transaction going on as we are speaking. The -- our bank has bought the fintech company, and HCL is enabling to scale up their fintech, to grow it not, only in its own business areas, but also take it international. They want to take this company global and HCL is enabling that globalization of that company as well. So right from back office improvements, using digital to front office, customer experience were digital to launching new products in digital for our clients. We are involved in multiple journeys for the customer. And before I end up, I wanted to also talk just a little bit on the ecosystem. I think Anand spoke about and CVK spoke about the fact that, look, how the new ecosystems are developing. So we have chosen to strategically be more aligned in the wealth management space and enter into strategic partnership with the global wealth management platform companies to enable the digitalization to happen in the wealth management business.

Thank you, Rahul. The last bank that Rahul talked about was one of the first retail banks in the world to adopt scaled agile back in 2016. So I talked about being part of very early journeys in customers and how those journeys have helped us help new customers, especially in complex industries trying to adopt a similar journey. So we're moving from financial services to another disruptive sector where we've seen massive growth, telecom. [ Inviting ] Anil Ganjoo, who heads telecom, retail, CPG and technology verticals for us, to talk a little bit more about how our digital business capabilities and the market changes have allowed us to quantify our growth and multiply our growth in telecom.

Hi, everyone. Before I start talking about the great work that HCL has done in the telecom sector, specifically, it sometimes feels like a tech sector or, as you saw, felt like a banking services sector. I think it's important to understand in a few minutes as to what is driving this opportunity, and thereby, HCL's partnership to the telecom industry. And so first of all, let me thank [ Mukesh Bai ] for showing all of us the potential of the telecom sector. Now take that as a baseline, and now multiply that tenfold because of 5G, cloud, net or edge computing, and then, of course, finally, IoT as well as metaverse. Now, if retail consumer business is X with 10x potential, and that's what the market industry analysts are talking about, that is really what has driven the biggies of the telecom industry to invest in a significant manner about $100 billion plus in the 5G spectrum. Now, what that means is after having invested all that and talking about huge rollouts of 5G, really, everyone is talking about monetizing and getting the return on investment. So you've got the networks, highly optimized, virtual ready role. You've got a lot of investment in the front end of transformation already done. I think every telco is realizing that there is the core telecom systems that really need to go through a massive transformation. So these are systems which are legacy. Most of them are mean train systems-based, 30-plus years, which really need to come to the level of a typical bond digital organization. And I think what you'll see here is really in our last 3 years, that's the space in which HCL has been working with the telecom service providers and the OEMs. So essentially, a lot of work that we have been doing and engaged in is highly enterprise level of billing and ratings systems. This is -- we are talking about companies who are $100 billion to $150 billion of size. In the U.S., they are about 80 million to 150 million subscribers each, and all their business is running on this enterprise billing and ratings platform. And here is HCL now helping them relook at this whole system, which is purely highly telecom-specific and talking about reinventing it, modernizing it, rebuilding it on the cloud. Just to give you an example of how complex it could be, the team of HCL, which has been involved and working, has been analyzing about 83,000 documents to understand these legacy systems. To really recreate it, re-architect it and modernize it to the scale for the growth that is anticipated in this industry. That's one example, which is keeping us extremely busy. The second is, which is -- again, very cold to telecom is activations and provisioning systems. These are systems which are essentially currently running for all their subscribers. But now, you're talking of a completely different scale because the maximum growth is going to be on enterprise businesses rather than just consumers. For these systems to scale to the equivalent of bond digital companies, you need to completely use different and modern technologies. And that's the next big thing that HCL, over the last 2 years and foreseeable many years, because these are massive modernization programs, is what we are working with one of the largest telco companies. We're talking of roughly about 3 million orders, which will be processed on a daily basis. We are talking of close to 100% growth because you're talking of IoT vendors, third-party vendors all being able to be serviced through these activation and provisioning systems which are near real-time. And to give you a scale of the size and complexity, we are talking of now building them on purely open standards technology and not cost-based because this is -- they really want to start de-risking and moving out from the traditional telecom software product companies, which they are not able to service them. That's how -- if you look at any technology online company, it's built on their stack for getting that kind of a performance. So really, these telecom companies are competing and the benchmark is online companies that we are all aware of. So that's the second big thing that we are being chosen by 2 of the largest telco companies in the world in terms of their massive transformation journeys of their core telecom systems. I think the third thing which is very interesting, based on what Anand talked about, is we are actually helping them implement an enterprise data marketplace. To give you a sense of what that means, laying the foundation for something that these companies plan on implementing or using for what is considered to be $600 billion to $700 billion of a market potential for them, because as Anand rightly said, they are the glue across all the industry. The telecom will stay there in respect to whichever industry it is. The data that one of our customers has, we are talking of 82 petabytes that they will be processing through their new networks of 5G rollouts that they'll be taking place. So if that's the kind of framework of the intelligent data and analytics that we are putting in place and helping them with, think about all the near real-time decision-making support systems that we are helping them across all industries -- sorry, across all functions, which is sales, marketing, finance or even operations. So that's the third big thing that we have been working on. And I think the last thing I want to let you know is there are companies which is what's called MVNOs, which is virtual network space organizations. One of them, you will see a video of, where we've actually helped them with what is called effortless digital journeys. Rethinking, reimagining their customer journey, helping them roll out new products, services, as well as go to real new markets as a part of design thinking principles, building systems for new products and marketplace opportunities which, today now, is a company that has been recently acquired by another large telco called Verizon. So 3 or 4 of these large programs that we have been involved in has finally translated, if you see 3 years back, for pure digital business services, which was earlier less than $100 million per annum, we have reached in 3 years. We have crossed $300 million, and I'm talking of specifically business services of digital across just 3 of these customers. The third one is a telecom OEM provider from Europe, where we've actually helped them with this whole agility of business by aligning the IT to business, and that's about 80% of their applications, modernizing them and transitioning and migrating them to the cloud and already reaching that goal as a part of the business case. So 4 or 5 of these big ticket items is what we have been engaged in. There's many more, and these are massive modernization projects which we are involved in. And I think the most important thing out of all this, I believe, is the work that we are doing or have been doing for all of them is not legacy support. It is core modernization, development on cloud of data and essentially what they are betting their future on. So I think we've got it right, and that's what is driving our bullishness in this industry. Anand, back to you.

Thank you, Anil. That is about the summary from my session. We remain very bullish about the acceleration. I frankly think it's the start of acceleration across many industries. And of course, continuous acquisition across industries that have always been progressive because that's the normal for them. Our differentiated capabilities are positioning us very interestingly as a unique challenger both with scale but with the agility and capabilities of a boutique, and the talent that is really relevant to the progressive enterprises, and that gives us the confidence and conviction. [Audio Gap]

Good morning, everyone, and a nice day to everyone on the online media who are joining us today. So I'll cover business, which is of high differentiated value to the company. And in the future, going to be generating a lot more value, just not as a business but influence the overall HCL business in a very positive manner. If you look at the videos that were presented in the morning before CVK spoke, we have talked about several examples there, which talked about planet scale applications and products that we have developed. It talked about making products usable by people with different abilities. About 1/6 of the world population has some of the other ability that they need from products and services so that these products and services have a bigger market play. So those are just a few examples of products and services that we influence and how we impact the world in a much bigger manner than just the numbers that you will see, which I talk about here. So a little bit about this market, because this market is there, evolving but not so well known, I would say. If you look at the overall spend in the market, it is over $1.6 trillion spend from an R&D spend, which is what is estimated in 2024, which is growing at about a 6% CAGR. But this is the overall R&D spend, including the spend made by companies for their own internal R&D. The growth that is expected in the future in the outsourced R&D spend is about 8%, and going to about $80 billion. And there's an equal spend today that's happening, which is by captives, which are called the global engineering spend, and that is about $56 billion going to $67 billion. The opportunity is there for us in the outsourced product R&D spend, to take it to about at an 8% CAGR to about $80 billion. Today, of the $64 billion spend, we are -- we have captured about 2.8% of that spend. The market is pretty fragmented. There are lots of players in this space, and you will see that as I walk through. The digital spend among -- sorry, the digital spend is about 27% of the total $64 billion spend, and that is expected to grow. And it is expected to capture a bigger share going to about 34%. This is the performance of our engineering business over the last 12 quarters. We, of course, had a big impact of the pandemic. However, if you look at the last 4 quarters, we have grown significantly year-on-year. The last quarter, we delivered 23% growth and the quarter before that, 17%. Significant of this growth, the driver is the digital engineering spend, and overall, we expect the market access is of equal importance and the capabilities in the digital engineering is important as well to drive future growth. Why is it important to have market access? Because the top R&D spenders, 61 of the 100, spent more than overall -- 54% of the spend is by these top 100 spenders. If you have market access, as this fragmented market consolidates, we have a better opportunity to grow ahead of the market. We have built up our large team, a global team, that can deliver to this growing need. We have 45,000 people across different geographies who are able to deliver the services that customers need. And we've been -- in this business, it is the business that HCL started with, or HCL technology started with. And we've been in this business for over 4 decades, which gives us the full position in terms of access to customers and the work we have done for these customer base. We have delivered significant innovation, delivered over 2,000 patents on behalf of customers, and over 300 of these patents are in digital space. In terms of the big bets, there are 3 big bets. Digital engineering is the first big bet, and I'll talk a little more detail about these big bets and what does this constitute. The second is about high-growth verticals. We are present in verticals that are growing faster, and that's why you will see our increasing market share and our growth being ahead of the market. And the last one is the high potential geographies. We've been in the Japan market for over 2 decades, and that is one market that we expect to spend significantly on R&D. We are investing in Germany and France as markets, which will help us capture a bigger market share, which is where we are not as well present. So these geos are geos which will help us grow ahead of market. This is our revenue mix. We had about 25.3% of our revenue as digital engineering revenue. We grew that to 29%, and our digital engineering growth has been at 34% year-on-year. And our traditional engineering, while the market is growing at about 4.3%, we have delivered 11% year-on-year growth. And the digital engineering CAGR is between 12.3% to 12.5%, whereas we have delivered 34% year-on-year. And the reason we are able to do this is because we know and can predict future demands of the market. We are spread across several verticals, and the creators of the technology in the cloud space and in the what we call our online ISV space, they create the technology, which drives a lot of the digital engineering needs, not only in the markets which ERS focuses on, but in all of the vertical markets that you talked -- we talked about earlier that HCL in our ITBS segment also focuses. So we are at the fountain head of that technology creation, and hence, know how it is done and how can it be applied, which not only helps with our engineering business, but it will -- it helps with our rest of the businesses. And the cross-selling that CVK referred to is one of the ways we can grow ahead of the market. This gives you a sense of the market segments. This is -- the engineering spend is across many vertical segments. And if you look at the engineering spend in the Software and Internet business, this is the fastest growing spend. And that's growing at about 12% CAGR, and it's about 1/3 of the market. And what I've shown here is how we have grown. The 2 greens here means we are growing double the rate at which the market is growing in this part of the business. Similarly, the telecom business is about 8% of the global sourcing mix. And here, too, we are growing twice as fast as the market. The semiconductor business is a very differentiated business. We hear a lot about semiconductor supply chain shortages and capability to build more and more fabs, which are required not only for the design and verification companies, but by several other downstream companies. So this one too is expected. Our growth rate here is double the growth rate of what the market is. Medical Devices, while it's a small percentage of the global sourcing mix, we expect to outperform this significantly. We have delivered over 3x, close to 4x the market growth rate. The same thing with Industrial. Our growth rate in Auto is just in line with the market. In transportation, in the segments that we are present, it's aero, we are not growing as fast as the market is. That's -- we are growing slower than the market and that's about 5%. So this gives you a little bit of color in terms of where the growth is coming from and what the growth drivers are in this segment. And we have access because of being -- of having worked with customers for over multiple decades into this space, and we are able to predict and know what their future needs are. This is our positioning across the U.S. market, where we are significantly present. And we have a lead pole position -- sorry, in this market segment. And as you can see, this market, there are quite a few players which are smaller in size and they are niche. One of the trends which will drive us to continue this market momentum is as sourcing becomes much more structured in the engineering space, we expect that there'll be a lot of consolidation opportunities, and customers would like to work with the larger global players with access to people and capabilities across the world. So that's the other reason why we believe we can continue to drive growth, which is faster than what the market is at. This talks about what impact we have made, and we have created products on behalf of our customers which have touched lives. We think over $2.5 billion -- sorry, 2.5 billion people across the world have used some products or services that Engineering and R&D has developed. We have influenced $450 billion of revenue for our customers. All of the products and services that we do impact our end customers' top line or they create certain efficiencies, and the top line impact that we create is much higher in terms of what customers' products create revenue streams for them. And in terms of traditional engineering and digital engineering, we are the only provider that analysts have rated us in the Top 2 in both these categories. We have a bunch of competitors who are good at digital only and a larger set of people who are good at traditional, but there are very few who can do both of them well and at scale. And we are, of course, one of them. We have had over 250 active customer engagements which are digital in nature, and we've built several products for top R&D companies and Fortune 500 companies. I like -- I said earlier, innovation is important for this business, and we have filed over 300 digital engineering patents on behalf of our customers. So it is important to continue to invest in innovation. I'll talk a little bit about what digital engineering is because this is something I would like to demystify, and people use this term a little loosely, so we've created a definition which is broadly acceptable by the industry. The first is about softwarization. This whole capability about products moving to the cloud, it is very obvious for the ISV companies. These are companies who take their products to SaaS. Microsoft, for example, taking their on-prem product of Office, so O365 is a good example that you could relate to. It's been done by several such companies. So that is one very obvious case. But if you think about switches, routers, products like that, today, those are also being softwarized. What do I mean by that? That the software component is being taken out is being put at planet scale in the cloud, and the box itself is getting lower and lower complex on one end. On the other end, you will -- when I talk about semiconductors, you will see a different dimension about cloud engineering, how is it impacting that. The digital platforms. Today, all of us use digital platforms in one or other way actively all the time, the streaming platforms, the OTT platforms. These are planet scale platforms, and they're pretty complex to engineer. They are pretty complex to deploy and run, but these run your businesses. And we have built such complex platforms or we have delivered value on top of it, making it work, a particular use case or a particular new market open up for our customers. Digital commerce, we have had examples of customers who have built commerce omnichannel journeys. But for those customers, the future need is about not just having an e-commerce platform or whatever, but being able to then make it scale, make it more immersive in experience, and new products and new applications for these kind of digital commerce platforms are coming up. I'll talk about a use case of it where already, a customer had a platform and then they scaled up to generate 3x their revenue streams and how we've helped in that journey. So that's the whole softwarization business, and we have about 47 such customers for whom we do these softwarization services. Industry 4.0 probably is much more easier to understand, interpret. Having invested in building PLM solutions and MES solutions for various manufacturing firms, we are now able to help them migrate to a PLM on the cloud, to have connected design, digital twins, all of those things, connected products. So that is just not in the creation of the product but aftermarket that you can get intelligence from how these products are used and deployed and create new services and revenue streams for customers. A significant portion of this is about strategic partnerships that we have, a robust ecosystem that will help in creating these products. We have them with IoT players in the space. We have with several PLM companies, platform providers, that are important to create these industry transformations that are required by many manufacturing firms. And 34 of our top R&D spenders, 100 R&D spenders are our Industry 4.0 customers. There are 3 more services that I would like to talk about. The 5G service, earlier, Anil talked about this in the Telecom context. This is the context of 2 things. One is product engineering. So your new, let's say, RAN controllers or your new products which need to be 5G enabled, that is a big revenue stream. And then putting together a solution around 5G for private enterprises and private networks, enterprise 5G, what you hear these terms interchangeably. I think that's where the real value will come out of. It's not about somebody getting a faster video stream as a consumer that is going to help you monetize your 5G, it is enterprises that can help you monetize, and that is what we are helping build. And this is a large opportunity of building end-user applications at scale for 5G relevance. We have 13 of the top R&D spenders who are using our capability in 5G and building new products and taking these to enterprises. The next service segment or next offering, if I can say, is the SIPS offering. We do a lot of design validation verification for semiconductor companies that are there. However, these companies are transforming themselves from just being a pure-play semiconductor company to being able to customize chips or chiplets and taking these for specific applications like 5G or like AI and putting the algorithms of AI into the chip so that you don't need to really worry about all of that, and it is efficiently run at the chip level. So that kind of capability is one, which will drive growth in this segment. The second is about then taking to manufacturing and or production of wafers. We have a large capability with our semiconductor equipment companies, which help us get the process technology knowledge that requires for fab and semi chip fabrication. We are also doing these kind of services for some of our large, planet-scale companies. They are building their own chips. They're having their own nano fabs, and we are helping those companies also build their own chips and build differentiation back into the hardware. While the softwarization trend I talked about was to decouple software and run the software at planet scale, this is the opposite of it, where people are saying, okay, I need differentiation back in the core of the chip, and that is what we do in this risk capability. The last one -- we have 8 of our global R&D spenders who are our customers who are consuming these services already. But the last is about data engineering and AI. This, of course, we've matured not only from the data migration and curation of the data, which is important before you can do any analytics, but also consulting with the acquisition that we have recently done. It will help us move forward into the front end of any large data migration, data engineering projects, and then can we also get the downstream revenue from there. And today, 27 of our top R&D spenders are here who are consuming these services. Beyond this is the AI services. We have built our platforms. If somebody doesn't have their own AI platform and consumption for -- or on top of those, we have an AI platform that can sit and you can leverage the investments that we have already made. So that gives you a sense of what our data engineering is about. AR/VR is the last one, and that is just not for -- we work with the creators of that technology, so we build products which help AR/VR become a reality. Not only that, then we build end applications that can help those products to be used in end user applications. I'll talk a little bit about some customers and some experiences of our customers in this space so that we can relate to all the technology and the services and how it is actually impacting a customer. So the first one here is about a customer which has become $100 million account for the company, and how AR/VR is a big emerging market segment for these customers. Talking about just now the chip design in their nano fab capability that we are working and building for them, but also helping create the end-user AR/VR device that actually delivers that experience, validating it, building an application stack on top of it so that you can put it to real use. Those are certain technologies that are coming together to deliver that kind of an end result. And this is a market segment that this customer started out 3, 4 years back and has become a big segment for them from a revenue stream, a multibillion-dollar segment. The next is about a customer that had -- in the traditional manufacturing space, manufacturing consumer appliances. They had very manual processes for doing it. We have helped them automate their entire shop floor, built a smart factory for them, implemented data analytics and data insights for the manufacturing floor and have got them efficiencies out of this through automation and delivered over 90% effort reduction in their entire manufacturing operations. So there are 3 things that have come here. The data engineering part of it, the second is the connectivity part of it and the third is about automation of their entire factory flow. The next is an example of a company in the medical devices space. As you see more diseases and more variants and all of that happened. Thanks to the pandemic, almost all of us know how this process now works in terms of new drug discovery and then the field trials and then the actual production and then availability. So this company has been able to then get into the clinical trials and clinical research segment. We've built a virtual platform for them which can help recruit patients or patients who are going through new drug trials, to be able to monitor remotely all of that and do all this very efficiently because all of this was very manual in nature earlier. Today, that is -- that whole process is automated. It is much more transparent. You can get a lot of insights, and that is the capability that we have delivered through building this platform. And there are, of course, a lot of regulatory requirements here, reporting requirements, adverse event reporting and all of that. So we get all of that data real time and make it available to the researchers. The next example is about revenue visibility. As customers go through their product journeys and move that to SaaS and all of that, then keeping their revenue streams is very critical as they make through that journey. So here's an example of a customer where we have taken over $0.5 billion of their product revenue streams and have taken responsibility, therefore, the complete engineering and the new capabilities that these products need to have for the future. And we have reduced the churn on these products. And what it means is they have got better revenue from more than what they expected when they signed up with us. So that's in the CRM space and the supply chain management space, manufacturing ERP space. The next customer in terms of -- so just a last point on this. This capability of SaaSification is just not relevant to online companies and software product companies, but it's becoming relevant to a lot more companies in the telecom OEM space, in the software storage space. Storage is almost becoming virtual. Nobody is using physical storage as much today, and that journey has already happened. In terms of innovation in the medical devices space, like we said, this is a small but very fast-growing market, and we have a disproportionately high capture of that revenue. Here's an example of the very first app or a device plus app, which has become like a prescription medicine. This is for blood sugar glucose -- blood glucose monitoring. The typical way that it used to happen before this device was you would go and get a prick and a paper and then you get a record of what the blood sugar level is, and it's a painful process. Instead, we worked with this company, develop a sensor so it is not a painful process to get this done. And real-time monitoring can happen, so the doctor can actually prescribe, saying, you need this wearable or this sensor to be on you for the next 3 weeks, and all of the data gets to a mobile device and then that mobile device data is available to the doctor who is monitoring. So this whole change process from something physical to something digitized, and this being available to doctors as a prescription is a 2-year process and a significant change in the way the whole monitoring is done. And when this company announced this product, the market share of this company went up by 9% the day they announced a product like this. So the work we do is highly market-impacting and revenue-impacting for our customers. And all of these products are, of course, under NDA when we drew them. This is now available in the market, so we can talk about it today. A lot of work we do, we cannot talk because those are products that are significant revenue movers for our customers. And when we are in development and when we are in the concept stage of these products, we are unable to talk about it. The last example here is about a company that was already using digital commerce capability, but that was not sufficient because that was just like a simple order and then get it delivered kind of a capability to now much more immersive capability. This is a product which is like a wearable, if you can say. And you will need to have that experience, which is there physically, what you can try and buy kind of an experience, change to a digital experience of a try and buy, which is a lot more immersive in nature. And this, over time, we've built this capability for them, and this has helped them increase their customer base and grow their revenue stream much faster. And Michael has something to talk about that experience and how immersive that experience has become for their customers. And similarly, from Becton, Dickinson, we have an experience of a customer, which is to take through an entire product life cycle of what we build with them. And the trust that we have built with them has helped us scale this relationship for the organization to be a high-value relationship beyond just product, a good example of how we have used a product-led customer or relationship to go sell other services as well. And I think this is the true value of the engineering capability. It's just not about what we do. Of course, that's important and that's a very valuable business for us. But these relationships helps us scale by selling other services that we have to offer to customers. So all of this, what does it mean? It also means that we'll get recognized for the work we do. We were recognized by Intel in the value -- by winning the value award or getting awarded this. NASSCOM has recognized us as #1 player in this space, organization of the year. R&D is becoming more important, and a lot more analysts are covering this space. Earlier, we had very little analysts covering this space. Now we have significant analyst interest and coverage in this space. Also, for the innovation award, we had been recognized by NASSCOM last year. And finally, Cisco, which has been our flagship customer over the last close to 1/4 of a century, this one, this is the highest recognition that Cisco gives to any of its suppliers. And we had won the prestigious Quality Award with Cisco in the last year as well. These endorsements are at a true partnership level. It's not just a product or one program but at a partnership level how we have been recognized. So finally, where does this momentum come from? Where does this, I think, differentiated value come from? We talk a lot about digital engineering and at-scale platforms. We've built -- we have had, over many years, strategic investments that we made in labs, and we have 20 different COEs that are not only watching technology that is happening here and now, what we call Horizon One technology, but we also have investments which are looking at Horizon Two and Three technologies. For example, quantum is -- quantum computing, which we believe is going to change the way computing is going to happen in the next few years, is something, is a horizontal technology that we are investing in and working with some of our customers, which are leading in that space. So the strategic investments that we are making may be small over multiple different technologies but helps us stay ahead of technology and look at what is likely to happen 3, 5 years from now and be ahead of the market. Ecosystems. We talked about -- CVK mentioned about ecosystem leverage. Actually, all of the ecosystems that we talk about are our engineering customers as well. So with them, the biggest thing for us is 360-degree relationships, which means not only we are enabling the products and market and services in the market, which is very important for them. But it gives us an opportunity to go and pitch and say, "Hey, we can create this technology for you," or, "We can make it efficient for you or help you transform this technology for the future," which is very important. So you have customers who want to not only help take their technology to the market, which is very important, but it also gives us a seat at the table to ask for doing this kind of work with them. So ecosystems help us in a significant way in the sell-to part of our business. Of course, the sell-with is a big thing for them, but the relationships are significant for us. And all of these customers in the ecosystem are multimillion-dollar customers for us without any exception. The other thing is about start-ups. These guys are watching technologies, and these guys are doing stuff, which will be probably 3 to 5 years from now, which will be important, not just for ERS as a business but for the company as a business. And look at these and invest in some of these start-ups, not just capital but more from a human capital perspective. We have relationships with several academia. They also watch technology and trends and help us build our business plans ahead of the market sometimes. And we participate in several forums and consortia. We also work with several open-source initiatives so that we can not only contribute, but then it's a [ drawing ] point for us when we go sell our services. Innovations and culture is a key for HCL as a company. We talked about idea of ownership, and the first video that you saw is all about innovation and value creation. And a large part of this not only comes in the context of the products and services that we create but also help enterprises use this technology and stay ahead of the learning curve and the innovation curve. Finally, the access, I think this is very important. I talked about several industry segments that we are present in, and entry is not easy. Entry is not easy because you are actually impacting customer revenues significantly. So barrier to entry into many of these industries is very difficult. Some are regulated. So this is our access and right, and this helps us grow ahead of the market. So we believe these are our growth drivers. There is significant headroom. Digital engineering is a big part of this. And global sourcing also is today at 9% of total R&D spend that is expected to grow to about 12%. So digital engineering is growing, and the market for global sourcing itself is growing. The second is about the long-standing relationships. Today, a significant percentage of our revenues come from the top R&D spenders. And I also talked about access to 61 of the top 100 R&D spenders that we have access to and we work with. And a lot of these companies are in the process of making their products more modern and transforming them to next-generation digital products. And in that journey, we will participate. We are having the participation today. And as that increases, that will create growth opportunities for us. And finally, about our new vista location strategy, it's very important for our product engineering customers because they like proximity, and the cycle times for many product turnarounds are shorter, and nearshore locations are very important apart from, of course, new vistas, which are important for retaining of the knowledge and the talent that we gain by interacting and working with customers. So to summarize, we have -- we are in a growth momentum. We are in a market that is spending, and we are working with technologies that are going to be important not just for our ERS business but help the company stay ahead in the technology space.

Good afternoon.

Good afternoon.

So I was thinking about, how do I simplify the trends? What is happening in this particular line of business, Digital Foundation, right? To simply put it, wherever Anand and Vijay Guntur goes, I go create a foundation for them. Whatever the transformation which is happening in the digital side, the foundation is required. That is one big trend which is happening today in the industry. And the second, we thought the -- as the generations, which are younger generation, are coming into the workforce, we thought the experience is going to play an important role in that area. But the pandemic kind of accelerated the whole thing, which is coming from a hybrid workplace. Now there is -- anything called remote working used to be a little bit of part time before. Now remote working is almost like a full time. Everybody wants to work remotely. These 2 trends, one is about the digital transformation, how the cloud is transforming the whole enterprises and the way the end user side, where the experience is taking and the hybrid workplace is taking the center stage, these 2 transformations are triggering a lot more in the security side, a lot more in the network side. Those are getting influenced, and there is a transformation that is an accelerated growth in those 2 areas also. With that, let me start by saying Digital Foundation is the bedrock for digital transformation. If you look at the current spend-wise, HCL's targeted Digital Foundation spend is the highest among all the IT services. And Gartner says it's about $512 billion by 2025 with a 5.7% CAGR growth, and it includes infrastructure implementations, which is growing about 4.5% and managed security services, 7.2%, and infrastructure technology consulting, it's under 7.2%. This is the landscape of what the opportunity size is. So if you think about it where we are, we'll continue to grow, but we are still small in reference of this opportunity, what we have. So this is one dimension I think I want you folks to understand. There is a new versus traditional segment. If you look at the various areas, what we have, especially the data center part, right, there's about $250 billion opportunities in the data center side. If you see that growth-wise, you are talking about some of the 4.5% hosted and private infrastructure is about 6.2%, these are transforming into -- the public cloud coming into the picture, they are transforming into almost 13%, 14% growth on the right side. There's a shift in terms of how the spend which is happening in this particular space into a newer spend about the cloud technology and hybrid cloud is where it is going, right? And the second one, if you talk about the traditional WAN and managed LAN, WAN services, which is somewhat flat and negative growth, but with the cloud coming in, the remote work coming in, there's so much of connections in what we call is hyperconnections, which are happening. And that is triggering about the SD-WAN managed service implementation, which is growing at 20% CAGR. So that's the way the transformation which is happening. Now let's look at the service desk side, the end user computing side. It's about almost a service desk is flat and end user computing, 3.3%, the emphasis on the experience side is bringing into subscription-based employee life cycle services into almost like a 15.2%. So if I take the Digital Foundation, the traditional services, traditional segment of services, all of them are slowly transforming into much more newer segments, and that's where the growth is transforming. While -- I will speak a little bit more about what is happening in each of these segments during the course of the presentation. So before I start talking about what is the growth aspirations about this particular business and what is the market segment, what we have, and what is the technology area this is going to go in terms of service line-wise, let me say this, what is going very well so far. The last -- I guess, starting from 2000 when we started this business, we've been a trusted adviser and partner for the large complex customers in managing their transformations and also their environment. So it's been a great journey so far. And we have -- over the course of time, we have introduced a lot of automation, hyperautomation into the delivery so that whenever there's a renewal that happens, we're able to give productivity to these customers and continue to keep them happy, right? And also, if I look at this, the customers continue to give us the best rated CSAT from an industry perspective. And that's kind of -- that is purely because the entire culture, what we have inside the operational teams are, how can we create value? How can we create -- value centricity has been a core of the entire operations. And that is what triggering to the -- creating the market-leading CSAT in the whole engagement, right? Plus, this transformation, being the part of the transformation partner, we have a visibility of how do we reshape our -- how do we shape and reshape some of the talent needs? And I'm sure Apparao will talk a little bit more into detail about how we are nurturing it, but the visibility of what the transformation is happening, we're able to continuously drive and change the talent needs. And finally, the partnerships, the 360-degree partnerships, there being whether the ecosystem partners, some of the technology partners, helping us to prepare not only our customers with advanced technologies but also our teams with advanced training skills and everything. If I look at the scale, 40% of G100 customers are Digital Foundation customers today and some of them probably using 1 or 2 towers, but there's a huge opportunity in that particular segment. We manage about 8 million users in the current landscape with the 6 million devices under the management. So far, we have created about 10,000 automation artifacts, which are reusable, and that's where the customer is getting the benefit of hyperautomation implementations in their delivery models. Close to 1.5 million server instances and about 350,000 instances in the public cloud we are managing today. So among what we have, about 40% of the workforce is being trained on all the next-gen technologies, that is what is happening, and plus 5 million network and security devices. And talking about the value centricity and value culture, last year, we were able to generate about $2 billion value to our customers through this grounds of mechanism of creating value and interaction and value for the customers. So let me take a pause and talk about a few customer examples and case that is what we have done. Let me invite Shrikanth Shetty. He's the Chief Growth Officer, Life Sciences and Healthcare.

Good afternoon, everyone. Pleasure to be talking to you, all of you today. And again, thanks a lot, Jags, for sharing the phenomenal growth that we have seen in the Digital Foundation business and also the scale that we have achieved over the past couple of years. I mean at the very beginning, you saw the very glowing video that the PepsiCo CIO spoke about, right, and how we have helped them grow. Obviously, this scale has been achieved by multiple customers, one relationship at a time. And what I'll try and do is talk a little bit about some of the other customers that we have been able to work with and help them in a similar manner, to help them walk the digital modernization journey along with them. Now before I kind of get into the details, 2 things I wanted to mention upfront. I think point number one is that the Digital Foundation business has been supported by the growth that we have seen across geographies, across multiple verticals and from across multiple microservice lines within the Digital Foundation business itself, may it be the hybrid cloud services, the digital workplace services, network or security, for that matter, point number one. Point number two is that the transformation services that we have offered in the Digital Foundation area has not only helped us win new customers, but also it has helped us increase our wallet share within the existing customer base as well. Now let me substantiate these 2 points by presenting some facts and figures to you. This first slide talks more about the way we are growing our existing partnerships. If you'll see, I mean, from top to bottom, these are all large customers. I mean Fortune 100 oil and gas, major Fortune 500 pharma, Fortune 500 medical devices, Fortune 100 leading food and beverage companies. Large enterprises, very global spread, I mean they're everywhere. Now second aspect I want you to focus on is on the right-hand side, you will see that, how long have we been working with all these customers? You will see that they range from 5 years to 15 years. So almost -- I mean 2 of them are in the 8-year range, and the oldest one is 15 years old relationship. Now again, we've been working with them for the longest period of time. The interesting thing is we have seen an accelerated pace of growth in the revenue and the book of business that we get from these customers in the last 2 to 3 years. So essentially, what I'm trying to say is that we have been able to get a bigger wallet share and grow our business with them because of the services that we are offering to these customers. How have we done that? Simply, I mean I think to rephrase what Jags was talking about earlier, when any customer, and all these customers, that's a common theme that we see, they're looking at digital transformation, they're looking at digital foundation is the basis of enabling digital transformation. And in this case, what does it mean? If it's in the data center side, essentially, you're moving from things within your data center to a hybrid cloud environment. You are utilizing the hyperscalers out there and trying to see how you can ubiquitously work across your internal data center as well as hosting workloads from the cloud. If it's on the network side, it is about, how can you use the public Internet to lower your telco cost itself and kind of connect with your colleagues in a very secure manner? And if it's the workplace services, I mean given the point that Jags mentioned about how the workplace itself is changing, how can you collaborate with all the various employee base that you have spread across the globe in a very seamless manner? And this is exactly what we are doing with our customers. I mean if you look at the first one, the Fortune 100 oil and gas major, what we are doing with them is, when we started this relationship 7 years back, it was a traditional infrastructure deal where we were talking about how do you manage the data center within their 4 walls of the data center, automate it and run it for them. But the interesting thing is when they started the digital transformation, they chose us to work with them and see how you can migrate a lot of these workloads. We had done almost 5,000 -- migration of almost 5,000 workflows on to public cloud for these customers. And we did something similar. I mean this -- in the last one, the leading food and beverage company as well, we did something very similar for them as well. We are starting with traditional sense but went on to be a part of the transformation journey. And then for the Fortune 500 pharma, we did something similar on the network side as well. If you look at the relationship, very old, right? We have been working with them for the past 15 years. We were working with them on the data center side. They were working with somebody else on the network side. But when they looked at network and they were looking at a fresh partner who can bring the transformation ideas and help them modernize and cloud-enable their network, they switched over to us. And that's been a big success story. And although the relationship has been on a steady course for the past 15 years, in the last 3 years, we grew the book of business almost 2x. So if I have to underline, the key message here is that these are relationships, long-term relationships. When it came to transformation, these customers decided to work with us and decided us, HCL, as a transformation partner for all those critical initiatives. Moving on to the second part, which is about, how did we win new customers? If you look at the bottom 3 customers here, and again, you will see that most of the examples here are from the life science and health care vertical, very close to my heart, I mean because this is a business I manage, and also give you some insight about the vertical itself. I mean this industry is going through a massive change. If you compare them to other industry verticals, they have been pretty laggards in terms of adoption of technology per se. But because of the pandemic, what has happened is they realize that this is -- I mean technology is what they need to invest in. They need to see how they can enable better patient care, better caregiver care as well within their environment and see how they can enable that. So there is a lot of focus on how they can use technology. Now what has happened here is that until now, they were always looking at -- they used to -- there was a trend in the U.S. where they were looking at value-based care model. But essentially, whenever you go to a doctor, you get -- you pay a fee, right? And here, the U.S. market is moving away from that model altogether. Instead, it is moving to a model where it is more in terms of you get the doctor or the hospital gets paid only if you feel better. Very different model. It's a very slow transition that is happening, but it's surely happening. And the pandemic has actually accelerated this entire process altogether. Because of this, obviously, there is a big drive to invest in technology, and that's what this industry is doing. The way they are doing it is, obviously, it's a very heavy spending industry. I mean in terms of if you look at the spend that they have, they are trying to see how they can free up capital from within their environment to kind of invest in digital transformation. That's what -- where we are coming in. Especially in the provider segment, that's a big, big trend that we are seeing where we are helping them reduce their existing cost and helping them reinvest those dollars into digital transformation. And something similar on the pharma side as well. But again, they are far more advanced in terms of outsourcing as compared to the provider segment. So it's a little bit more -- they are looking at transformation partners on the pharma side. But on the provider side, it is more in terms of, how do you save cost and reinvest? Also, what is happening is -- I mean what I want to highlight here is that while we are doing a lot of the infrastructure work for these customers, along with the infrastructure work, there is a lot of downstream application and data work. This is also coming around. For example, if there is a cloud transformation that is happening, you have a lot of downstream application work, application transition, application modernization and application migration that needs to happen as well. This work automatically comes to us. And that's what -- I mean our customers have started depending on us as well. And that is what is -- along with the infrastructure work, it is driving a lot of downstream application and data work for us as well. That's about the way -- and again, these are all significant relationships. If you see the kind of revenue we are driving, $50 million plus ACV of contracts that we have with these customers, there's a large room for growth as well in the future. With that, let me take a break and let me invite Jags back on the stage to talk a little bit more about what the future holds for the Digital Foundation business.

So before I started my session, I said wherever Anand and Vijay goes, I go with them and create the foundation. But here is examples of the large customers who are with us for the last 10 years. I have created the foundation, and I'm going to invite Vijay and Anand to create the -- whatever the transformation on the top of the foundation. So that's another way to look at it in a simplified term. So talking about the kind of work we have done, the recognition by industry analysts and the technology partners, you can clearly see that in the public cloud IT transformation, we are the only provider along with the 2 consulting partners on the other side, global consulting players. From an Indian heritage provider perspective, we are the only one who is in the leadership quadrant in the public IT transformation -- cloud transformation. And when it comes to Gartner Magic Quadrant, HCL is pretty much there in every quadrant as a leader, performing -- giving the customer satisfaction and performing that role. And there are various other places, digital workplace, security, where pretty much leadership playing the role. And also, when it comes to the technology partners itself, there is quite a bit of recognition what we have, be it whether Cisco or Dell or Rubrik or Cohesity, some of these guys, clearly recognize us. And ecosystem partners also, Microsoft, AWS, Google, they recognize us from the technology vision as well as the catalog creation, some of the offerings, what we have for the customers. So talking about what are the various growth vectors I have, I talked about from a market perspective. There is a huge potential with the existing customer from an expansion perspective. Today, most of our customer, from a consumption perspective, either they are engaged with us in the data center space or engaged in the network space or some of them are in the UC space. There are clear opportunity to broad-base their spend. We've talked about, typically, the DF contracts are in 100-plus millions of contracts. So we clearly have one vector where we can continue to mine the existing customers. The strategic investment, which Vijay talked about, opening into the new countries, new frontiers, focus countries and new frontiers, we clearly see that there is about a 40% to 50% growth in those countries to add a considerable revenue stream there. And another one, which is clearly an untapped market, $70 billion to $80 billion potential untapped market. Today, there are small vendors providing a segmented sort of small outsourcing things they're doing. There is a clear opportunity to consolidate that and go after that particular market itself. And the whole transformation journey which has created through the cloud transformation, there's a clear digital transformation, clearly, demands for next-gen operating models to come up within the hybrid cloud and SD-WAN and the security. Because the need for the security, need for the network and need for redesigning the whole skill set and operating model is huge, and that reshaping that particular customer deliveries is an opportunity by itself. And another one, we talked about this, $100 billion renewable market is there today. The reason I say it's very attractive is this is done by the traditional players. The traditional player is not able to cope up with the digital need demand, which is obviously creating an opportunity for us, and that's a clear play for us to go after and get -- address that particular market space. And finally, the hyperscalers partnership which Siki is going to talk about is a clear opportunity to ride with them. Their growth is going to continue to give us a lot of cloud implementation, cloud managed services and all those things. So far, we are -- what we have done in the last 3 years is 2x of the market growth. I talked about Gartner projected about 5.7%. So we have performed about 2x of the market growth. And I see there is a potential to do 2 to 3 -- based on some of these things I talked about, there is a clear opportunity to go to that level, right? Let's talk about the evolving business mix in the data center space. As you can see, in FY '20, if I look at the data center, revenue is 92%, data center revenue, traditional data center revenue, and it's about 8% in '20. That's gradually gone up to 19% FY '22 and 81% data centers. So you can see there is a continuous momentum. Public cloud spend momentum is picking up. By FY '25, we see that 61% versus the 40%. So there is a -- because of some of the transformations and things like that, so there is a constant shift in the way the business mix is going towards. That is the trend within the data center side. And obviously, ecosystem partners, ecosystem strategy is playing -- accelerate these particular percentages. And if you look at the digital workplace site, traditionally, the consulting and experiences services, which are playing a big role in terms of the shift also, traditional EUC, the way we do service desk and desk-side support, these things, the demand for the experience-based services is triggering us to continuously add value. And we see that over the time by FY '25, is about 60% on the traditional side and 40% is more on the experience side, that's the way the shift will happen. And there are continuous -- we are continuously working to cocreate some of the proposition. If I look at the digital workplace, right, there is a clear realization among all the top customers that customer -- employee satisfaction will lead into the customer satisfaction. And that's where starting from all the C levels, they continue to invest dollars in terms of how do we bring this transformation into the employee side. And so in the process, what we are doing is there is a paradigm shift in terms of instead of signing service-level agreements with the customer, we're actually going and signing experience-based agreements with the customer. Now that's the way the transition is happening. And that is what triggering in terms of some of the engineering work we are planning to do on the UC side, some of the design work, how do we actually accommodate some of these changing things, helping us to make that shift from a regular traditional EUC services to the engineering side of the EUC services. And moving on to the last one, which kind of places, if I look at the 80% of the data breaches today happens because you don't have authentication system and also a stolen password, by deploying identity and access management and managing that, the companies can minimize that particular risk. There is a huge play in that. And also with the cloud coming in, the end users accessing from anywhere to everywhere, there is a clear exposure on the digital assets from a security perspective. By deploying SASE and cloud security models, you can clearly address that particular problem. Same thing which is kind of reflecting in the network side also, because your endpoints are increasing, there is a traditional way of everything pointing down towards the data center is shifting away from -- they want to access from everywhere, anywhere. That is actually creating a lot of opportunities for SD-WAN and SASE kind of architecture models. So then we clearly see that there is -- as I spoke to you in my earlier part of the conversation, there's a clear growth momentum in these 2 areas. And when it comes to data center and digital workplace, there's a shift in terms of how the revenues are shifting from -- as a business mix. In a summary, what I -- in a summary, Digital Foundation is the largest IT spend segment we have. And we clearly have -- from an opportunity perspective, it's a clear opportunity, big market segment in front of us. We've been a trusted partner for our clients in the digital transformation journey. And also, we've been rated by industry top analysts as a leader in this particular quadrant. So we aspire to grow 2 to 3x market growth in the next several years compared to what we've been going on. So I'm quite positive about how the situations are looking right now in terms of the security network and the experience side and continue to maintain the momentum in the data center side because you have seen the relationship last 10 years, 15 years, some of these customers, we are the best people to take them into the next level of transformation journey.

My session is titled creating value, creating value for shareholders, for the company and all the stakeholders. I'm going to talk about a little bit of the recap of the last 5 years, the numbers, it's kind of mandatory. Being a CFO, I can't avoid that. And then I'll focus on couple of new messages, which is what all of you are really here for, right? Something additional over and above what we've already mentioned in our con calls and quarterly publications and so on and so forth. So I'll come to that towards the end. It's not a very large PPT. So here goes. Right. So just to get through with the mandatory stuff, just putting down the total revenue on the right -- on the left top corner. Over the last 5 years, you can see the numbers, 7,800 million -- $7.8 billion to now $11.5 billion -- $11.481 billion to be precise. And that's a CAGR of 10% over the 4 years, so $7.8 billion. And that is despite, as you can see, in the FY '21 was obviously a COVID year. And if you see the graph just under that, which is mapping the services revenue, services revenue was flattish in the COVID period. At a company level, we still grew decently because we integrated in 3 quarters the acquisition from IBM of the 7 products. And therefore, you can see that is the reason for largely the difference between the services revenue growth and the total. As far as the profitability metrics goes, the operating profit measured either as EBITDA or EBIT on the right-hand side, you can see has grown at a pretty good clip of 12% over those 4 years and EBIT at 9.1%. The difference is obviously because we have a serious dose of noncash depreciation and amortization charge, which obviously hits when you grow a part of the business inorganically or through acquisitions. Moving on to the other metrics, which are at the bottom of the P&L. The net income, as you can see, has grown at 7.5%, whereas the earnings per share has grown at 12.5%. Now obvious question, why is it different? So the 5 percentage difference, 80% of that or 4 percentage points is really the ForEx difference because as you can see, the left-hand graph, the net income is in U.S. dollar terms, and that has grown from $1.35 billion to now $1.8 billion. And on the middle panel, you have the earnings per share, which is in rupees, which has grown from, say, INR 31 per share to close to INR 50 per share now. So that's 4% of that difference between 7.5% and 12.5% is explained by the rupee depreciating versus the dollar. The balance, 1%, is really the buyback that we did back in FY '19 that has a denominator effect and therefore the extra 1%. But the interesting thing on this chart is really the right-hand panel. And you can see that 4-year CAGR is much higher than either the revenue, whether you look at it at a company level or services level or you look at the EBITDA or EBIT or even the earnings per share. So the company has been generating serious cash. Especially in the last 3 bars that you see on the right-hand panel, right, that's grown from a level of about slightly under $1.3 billion in the first 2 years of this 5-year period to a whopping $2.65 billion in the COVID year, helped by some extra care -- we talk about the safety, liquidity of our assets in the balance sheet, largely being the accounts receivable, as you know. We really put high gear and actually reduced our DSOs by a factor of about 8 days, which is a big deal when you look at the totality of -- let's say, even if I include the unbilled revenue, it's about 84-odd days, 83, 84 days, whichever quarter you may look at. So reducing 8 days on that is like serious 10% kind of a movement. So that's how the OCF has been driven. As I'll explain in one of the later charts, that's not all. That definitely is the reason for the peak in FY '21, and that's not something you can continue doing every year, right? Otherwise, in 10 days -- 10 years, our DSO will be 0, which is not possible. The other big factor which has resulted in the OCF being much higher is lo and behold, the same thing, which is the noncash charge in the P&L. The reason it is noncash is because that CapEx has been spent on acquiring the business or building the IP partnership. And thereafter, it's generating the cash, you are accounting-wise required to take that charge, but that cash is definitely flowing into your OCF. So that's sustainable 3 years you can see, and it is sustainable beyond, and we'll talk about that. So that's the story wrap-up for the last 5 years. Moving on to a little final look at just the current year, which we closed about 5 weeks back, 6 weeks back, which is FY '22 versus FY '21. So at a company level, on the right -- on the left-hand side, you can see the total revenue of the company grew at 12.7%. But as we have been pointing out, the services revenue, which has been growing much faster, is grown at 14.9%. And the good part is the last 3 quarters of the financial year, the services business has been delivering a CQGR, cumulative quarterly growth rate of 5.2%. So in each of those 3 quarters, we've delivered more than 5% services growth in constant currency. And at the end of the year, we've closed the services revenue at a level of $10 billion, which is the level we hit 1 year back for the company as a whole. It's kind of poetic justice that services hit the $1 billion mark in this financial year. Moving to the right-hand side, it's all the typical profitability metrics. As you can see, in dollar million, it has pretty much been flattish. Obviously, the growth has come back, but so has the costs, some of which Apparao talked about, others, CVK covered in even his first slide in the morning, first or second slide in the morning itself. Costs have come back. So we have been able to hold steady the profitability in dollar million terms, but as a percentage, we have certainly slipped. And you can see that on the right-hand side. On the net income side, we've been able to hold on better than EBITDA and EBIT. And that is due to some good other income we could make both in terms of ForEx income and also interest income that we have on surplus cash. And also, last but not least, the excellent work that we've been able to do managing our tax expense. So that productivity has also helped keep the net income number up. So we have been talking about this all day in various conversations. So this is a slide which basically talks about, what are the margin levers that we have available? As you can see on the very top, 18.9% is the EBIT at the company level for the full year, and the last quarter of the previous financial was, of course, 17.9%. And our guidance, which is at the bottom right-hand corner, just above the HCL logo, is 18% to 20%. All this is you are already aware of. The slide in between is really talking about what are the levers. We have talked about most of them. So I'm not going to spend time on each one of them, maybe just a couple of them. Revenue is one segment kind of thing, right? I mean that is one basic lever, which CVK talked about in the morning, we have all been talking about, various customers, contracts, various types of contracting, various types of billing methodologies, blah, blah, blah, reaching out to customers. They're being receptive, but at the same time, it takes time in a custom solutions, custom pricing kind of a mechanism. And that is what we are working on, price point improvements and leveraging all the existing customer relationships, the strong relationships that we've built up over last few years and decades. Coming to the cost side then, a number of levers, again, if I start from the bottom right hand, fresher absorption is something we've talked about, the 5,900 going to 23,000 within a period of a couple of years and now wanting to take that much ahead in the next couple of years, so much so that ultimately, the vision being that you replace whatever attrition we may have by taking in freshers and growing them through the pyramid, right? Leveraging new locations, Apparao spent quite some time going through that details, 8 to 9 centers in the Northern America geography itself followed by Sri Lanka, Vietnam, Costa Rica, Romania and what have you, right? So those expansions in being where the talent is delivering, where our customers are located, some of them, or those languages are spoken and so on and so forth, right? And then of course, utilization, right-shoring, these are traditional levers, which I'm sure you know as well as me what those levers mean. I'm not -- automation, we spent some time on that especially during the delivery sessions, business sessions. So I'll move on from here. And coming to the -- now this is very interesting because I hear 2 sides of this equation. A lot of you here today, in fact, and I was very pleasantly surprised, expected but surprised, right? Talking about how come this OCF is so high compared to net income, right? And you have the numbers right there on the left-hand side. The dark blue is the net income for the year, and the light blue is the OCF. It was lower than 100% in the first 2 years of this 5-year period. But lo and behold, it has been significantly higher in the last 3 years, right? So let me not -- let me solve the mystery very quickly. The answer is right there on the right-hand side of the chart. Like I said, if you look at FY '21 or even FY '22, there is a serious large amount of depreciation and amortization. And as all of us know, they are noncash charges in the P&L, your EBIT goes down, your net income goes down because of those noncash charges, but my customer is paying me that money. And therefore, when you look at OCF, it is there in my bank account, in your bank account, in the investor's bank account, right? So that is the biggest item. You can see $1.6 billion. Add $600 million on top of that, serious amounts, right? The $1.8 billion adds another roughly $600 million, $580 million to be precise. That's the big deal movement. And by the way, a lot of you who asked me about that asked me the usual forward-looking question as well, right? Is this sustainable? The answer is yes, it is sustainable, right? Because those depreciation and amortization, while it might go down a little bit year-on-year because that's the way we set up the amortization schedules, but it is still going to be very significant even for the next foreseeable future. And you can see that in my balance sheet that intangible assets is mentioned there, and it will get amortized over a period of time. The second line then there is the working capital movement, right? And it includes a whole lot, but the big mover in that line is really the DSO, which we publish every quarter, which from a level of almost 92, 93 days of DSO, we brought it down to 83, 84 days. And that's the big number, which moved in FY '21, which is not going to be the same every year, not possible, sorry. I would like it to be but not. And this year, we actually -- because of the growth, you typically do land up with more accounts receivable in dollar terms. In DSO terms, it might still be the same. But in dollar terms, we do invest a little bit in working capital, right? Now I come to the blue box right at the bottom and on the MAT. What is MAT? It is minimum alternate tax. Anybody well versed with the tax laws of our country knows what MAT is basically, what you pay on the P&L, PBT, even if, as per your SEZ regulations and whatever other regulations across the world, you might be tax-exempt for a large part of the income that you make, right? So that's what MAT is. And I did talk about this very briefly as that's the amount of time I had in the con call that we just concluded at the end of the financial year. And while a lot of the analysts in their reports talked about the 24% to 26%, which is the number I called out, everybody took note, good, so far, so good. But people forget or tend to forget the second number in that blue box, which is 20% to 22%. Now as analysts, as investors, as shareholders, we have to decide whether we want to look at P&L or cash flow, both or whatever combination, right? This chart here is simply trying to say there is like 4 percentage points difference, which, let's say, if I take a consensus view or whatever, PBT, let's say, $2.5 billion, round number, 4 percentage is a good $100 million. That's $100 million of cash, which is going to be in my shareholders' and my company's bank balances, but it's not going to show up in the P&L because the P&L will be going by the 24% to 26% metric. I hope this is clear because -- I mean one thing is you wanting to look at it differently. But the other thing is at least understanding what clearly we are trying to communicate here, right? There is that 4 percentage points of PBT, which translates to a round number of $100 million maybe, plus or minus a little bit. And by the way, it's not only 1 year. That other number, $313 million, $313 million is sitting in my balance sheet. You can see it. It's a separate line item. It's accumulated MAT credit over the last 10-plus years, which we have been paying and now we have started to use. So for those of you who are interested in our cash flows and the sustainable cash flows for the next, let's say, $100 million a year, it will last me for at least a couple of years, right? How much ever I grow, how much ever more profitable I become, at least 2 years, if not 2.5, 3 years, something like that, right? So those are the reasons. Depreciation and amortization, $580 million, maybe go down a little bit. $100 million of cash flow because of the tax accounting P&L versus cash flow, right? That's what I can see for the next couple of years at least. And that's why coming back to the left-hand side, that line of 120, 120%, which is the average for the last 5 years, I am very confident to say yes, HCL will deliver at least for the next couple of years that 120% of net income. That's what you were asking for. Here's my undiluted, noncontroversial, very simple answer, yes, for the next couple of years and hopefully some more in the next few years but maybe not that level, but we'll see. We'll certainly try to keep that rate going. So this is my first message, which I promise something new. So that's part of the message. Moving on to the second one, and CVK in his session did allude to this. So let me explain this chart because this is new, not maybe something that everybody tracks every day or every month or even every quarter. This is what we have been focusing for the last couple of years very seriously. And I'll start with ROIC, return on invested capital. This is the capital invested in the business, not counting the idle cash reserves that we also maintain. We put it in safe liquid investments, generating some small return, which goes into other income, et cetera. But this is just cash invested in the business, right? The dark blue line is what ROIC we have delivered. And all these metrics obviously have a way of calculating those notes at the bottom. And I think we have a glossary at the end of the PPT when you download it -- not download it, but when you view it on the microsite, you can see those definitions, et cetera. We've used a 5-quarter average for the denominator, which is mentioned there. The last but one line, invested cap, invested cap. That has been growing for us over the last 3 years to a level of $5.9 billion from a level of about $3.7 billion in FY '18. So over a 4-year period, it has increased by $2.2 billion virtually. But what I want to draw your attention to, it has flattened relatively speaking. In the last year FY '22, it has held steady, $5.96 billion. And that doesn't happen on its own, right? It's because of what CVK said in the morning, we have been focusing very hard on making sure we make ourselves much more capital-efficient. Yes, we invested a lot building the P&P business. We invested even in the services business mostly organically, a little bit inorganically and all of that. But now we are focused on the capital efficiency as well. And the purple line shows you that yes, we went down from -- and capital efficiencies, simple metric, revenue divided by invested capital, right? No major jingbang, no calculus, no major calculations, right? Simple revenue divided by invested capital. That did go down from 2.11, 1.91, 1.76 and troughed at 1.73. The interesting thing is just by holding the invested capital stable or steady, we have been able to move it in 1 year itself from 1.73 to 1.92. And the dotted line shows you my projection for the FY '23 -- what I've done here is very simple. There is a 3 column, lower, mid and high. You recognize these numbers. The EBIT guidance we've given you is 18% to 20%. So it's 18% on the lower side, 20% on the higher side, and midpoint is 19%. Simple. Similarly, on the ETR, I told you 24% to 26%. So in net income terms, 24% is the -- is what gives me the highest net income. So that's the high point. 26% is the other end of the range. And for easy calculation, simple calculation without projecting invested capital for next year really, we have our own internal calculations obviously, but to keep the commentary simple, we've just taken the same number, whatever was the average for the last 5 quarters, which is the FY '22 number. So it's that -- and our internal calculation is to have a number lower than that, by the way. So if we just do that lower and high and midpoint, that will generate ROIC which is at least 28.8% which is virtually the same as last year. But I do expect it will be towards -- a little better than that hopefully, either at 31% if we hit the midpoint in all of those metrics or even 33.5% if we hit the best-case scenario given the range that we have given you. So that's the second message I wanted to leave behind. First is a pure cash flow, 3 financial statements, right? P&L, balance sheet, cash flow. So the first message on the previous page was the cash flow, and this is a combination of the P&L and the balance sheet. This is what we hope to deliver. This is what guidance that we have given. The only thing new I'm adding really is that we are working very focused on improving our capital efficiency and projecting a capital efficiency of something like 2.16, 2.18, 2.20, something in that range, hopefully better than that. And that should deliver ROIC, which is better than what we've delivered in the last 2 years. So that's the second message really. The third message, nothing very new in this. We have already announced this in the last 6 to 9 months, starting October of last year. As you can see right on top, we announced a capital allocation policy, a payout policy for the next 5 years. Now this is something I heard from a lot of you over the last several years, 3, 3.5 years, right? And like Roshni mentioned, the Board listens very hard to what you have to say, what the stakeholders, shareholders at large have to say. So we heard them, and we upped the payout policy to a minimum of 75% of net income, not for 1 year, not for 1 quarter, not for 2 years but for 5 straight financial years, over that period. It could fluctuate in between, of course, depending on what happens on the other part, 100 minus 1 -- 100% minus the minimum 75% will kind of -- and the fact of the matter is in the financial year '22, we have already played true to that. And that's what the pie charts are trying to depict. The first pie chart on the left-hand side is really the first 3 years where 52% was invested back into the business either as IPPs, payment for intellectual properties that we were buying or part payment for the acquisition of those 7 products from IBM, which was half paid in FY '20 and then half paid in FY '21. So that 52% in the first 3-year block, 62% in the second block in the pie chart has gone to 8% in the last 1 year, right? So that has changed. That has changed big time. The other one is really cash return to shareholders, which is the dark blue on the left-hand side. That was at 27% for that block of 3 years. Because we were investing so much in the business, the payout to the shareholders did come down. And then it went up to 57% in FY '21. And this year, lo and behold, like we said, minimum of 75%, we finally landed up declaring a total dividend during the year of 88% of the net income. And the balance, purple is really what is either retained in the balance sheet or drawn out of the balance sheet. So that's really a balancing number in that sense. So in the first 3 years, 21% of the net income added back to the balance because we had to add back, we had still to pay IBM half the money at the end of FY '20, right? And then we kind of used up 19% of the net income in FY '21. And this year was just putting minus 4% back into the balance sheet, right? So that's the third message, which we have talked about. And this is my last slide. And again, there have been a lot of questions on the P&P. Hopefully, 80% to 90% to maybe close to 100% got answered in today's session. Rajiv and KK walked you through that. I'll just bring in the financial aspects of some more data points just so that -- I think we have talked about this now and then, but just to put all of them in one block so that the takeaway is complete, as much complete as we can make it. On the left hand, therefore, we start with the $3.5 billion. That is what we have invested over the period of 6 years, right, from, say, July -- June of 2016, so next month, we'll be full 6 years completed, and $3.5 billion in various time periods during those 6 years, including what we acquired, the balance 20% from a JV partner, even as late as December of 2021. And then what is it generating for us, and we've talked about this, I don't need to detail too much since we've already had a session, $1.4 billion of revenue and 24.4% of EBIT, highly profitable, highly cash generation. That EBIT is -- as you know, after that solid dose of amortization that we already spent time on. 2/3 of that revenue is really subscription and support component, which is recurring annuity in nature. And the EBIT, again, it's higher than the 18.9% at a company level -- almost 6%, 5.5 percentage points higher. And like I said, it's beyond -- after taking the seriously large amortization charge. Again, what -- the biggest asset that this acquisition has really developed -- delivered to us is the customer base. 15,000 is the totality what we got. More than 10,000 is the number -- 6,800 that Rajiv and JK shared, they are focused on. That's the meaningful size, but we do retain the larger base as well, often through the service partners that we have, the product partners, et cetera. And the last 2 is what -- again, I wanted to give you the financials perspective. In the -- over this period of time, especially in the last, say, 2 to 3 -- 3 years, really. More than 2/3 of that investment of $3.5 billion has actually already been recovered in cash flow terms. That's the number I want to leave behind with you because we keep thinking, oh, the company spent so much and invested so much, and we kind of look a little critically sometimes on the P&P business. So, hey, as a pure financial metric, more than 2/3 of that money is already back in the bank. And in a couple of years, the rest will also be in, too. And after that, it's all money for jam, right? I mean the profitability and the revenue and the cash flows would still keep coming, and there's no -- I mean accounting-wise, there will be goodwill sitting in the book. There will probably be some intangible assets also because some of it might take longer. But in cash flow terms, the money is already in the bank, right? That's a different way of looking at it. So for those investors and those analysts who are more cash-focused like I am, I think this is a meaningful metric for your consumption if you care to look at it, right? And the last one is, again, a cash flow metric. It is IRR, internal rate of return, right? Every time you or in your companies or in HCL at least, anybody makes a business case, wants to acquire something or build even organically, we ask for a business case. And typically, our hurdle rate is 12% to 15% in U.S. dollar terms, not in rupee terms, we know there is a difference; and post-tax, not pretax. 12% to 15% post tax in U.S. dollar terms is not a mean -- is not an easy return metric to generate. Those are typically our hurdle rates. And it's a range, obviously, because there will be an optimistic view, there could be a realistic view in between and then there could be a conservative view. So that is the range of those decision-making parameters on the IRR side, right? And we've generated more than that. We've generated different ways of calculation. It can be 18%. Some put it more than 18%. Some could be a little short of -- just a miniscule short of 18%. But that's the kind of IRR that we've generated just from the cash flows of this business. So I just wanted to take the last slide of my session just to make you aware that the business that we are talking about this company invested so much of capital in this, more than 2/3 of it is back, generating 18% IRR. And that's what I leave to your assessment and your analysis, right? So that's all I have for the evening.

[Audio Gap] Of this opportunity for me is to show you how the cloud market and the cloud technology are the glue and the energy for growth for all aspects of HCL business, especially in Mode 2 and Mode 3. So now let's go and dive in on this incredible market. So we all know it's a very large market growing very, very fast. But there are a few aspects as I really want to review with you. First of all, you have heard from Jags that this market and the traditional market are being considered in a different way, and that they're getting closer. And the crossover of IT spend preferring cloud business is predictive for 2021st. And that's different than the chart that Jags presented. There was really just the data center component of the cloud business. That market has got more longevity. But if you take all of the stacks from infrastructure, all the way to business process, the crossover is predicted for 2025. This date will come and come again. So put your attention to the year of 2025. So by then, 51% of IT spend will be driven by cloud. Another very interesting statistics is, again, on 2025, 95% of new applications and capability will be driven and written and constructed on cloud-native technology that has a tremendous potential for our digital business and transformation. So as you see, the cloud is really -- the growth is floating all our 3 line of the business, including the digital engineering. More and more in my presentations, you will see that cloud brings together and starting to blurring the lines on how the power HCL can come to the cloud market. The other interesting statistics that is really little, but I'm just going to try to point to you, is a prediction of NASCAR. This says that said again by 2025, between 40% and 50% of the revenue of the SI will be influenced by the ecosystem partner and the hyperscaler from 20% and 30% that it is today. So for the gentleman that asked the question to Jags what is the influence of the ecosystem partner, this is a first way to start analyzing that very important impact. Now on that note, around 3, 4 years ago, HCL had a pretty brilliant moment of foresight in establishing their ecosystem hyperscaler business units and at that point really started -- be able to see that this influence will be very strategic to the business. So let's go and evaluate how this new dynamic of the ecosystem is influencing the market and our strategy at HCL. First of all, to understand how the business pattern is changing, we have to have a little bit of a walk in the history of how clients had been buying products and service. So the beginning of time, clients will buy single product and services with direct procurement. And by the way, after a while, create a really disjoint IT budgets. And a complete disarray. So here we come, the outsourcing way, where the SIs were put in charge of buying technology, aggregating, building new solution and managing. That was very good for the business. IT was able to return to the business quite a lot of money. But obviously, IT lost a certain sense of control and a lot of touch from the technology. So here come cloud technology and the as-a-Service market where the hyperscaler and the SaaS provider created an equilibrium again, where the client was allowed to select their products in a bundled situation. But at the moment clients want to scale their cloud solutions, again, needs the support of an SI. At that point, though, the hyperscalers have actually inserted themselves as the orchestrator and the equalizer of which size will work on their platform. So on that dynamics, actually, the fact that HCL has already established a very good relationship, it was able to harness the power of a multi-wave partner. So let me explain how that work with an example. HCL is probably the largest implementer of SAP on RISE cloud architecture. We moved all our back systems on a modern cloud architecture. At the same time, HCL was instrumental with the engineering resources and technical resources in supporting SAP to build and launch the RISE cloud platform. So in that way, we have created this balance of trade and very synergetic combination that has allowed us to create an additional value proposition to take this experience to our clients together, stronger of having -- implemented stronger of having influence and driven the road map of SAP. By the way, we do have this type of relationship with other of our ecosystem partners. And as well, this triangularization is going to be one of the strength of our growth for sell to, sells with and a combined go-to market. So let's look at the strategy. So we talked about the ecosystem. So the ecosystem by themselves, apart from being a great go-to-market partnership, are the foundation where we build breakthrough innovation. We have around 48 innovation labs around the world. We have Cloud Natives Labs in -- we have as well a very good relationship on looking at the markets and start-ups, some start-ups that we can work together, and we build the industry solutions together. Chris in AWS, we built together a PLM for manufacturing solution that is used by Fiskars, a big Nordic company, to redesign all their product life cycles. And the last 3 years, the combinations of this strategy was really completed with the launch of HCL Cloud Smart. The Cloud Smart, it is a methodology, a set of solution that brings the ONE HCL point of view and offering to our clients in different pathway for innovations and for continuous modernizations as to all the way to operations. So let's talk about these pathways. We developed a methodology that is really an engagement methodology with our clients and a way for us to present our offerings. And we have created 3 main pathways. There is a pathway that we call the Smartway to Cloud that is really the journey to cloud. This is where the journey to SaaS, the ERP, the data on cloud, the application modernization. And normally, this is productivity-led conversations. Then we have a Smartway in Cloud. That's where the adoption of cloud-native technology, the big data projects that Anand was talking about with artificial intelligence and machine learning, where all our industry solution as well the advent of the edge with a very strong combined managed services for infrastructure all the way. That's in innovation labs. At the center, we have what we call the pillars of a successful cloud implementation. I've been doing cloud for 15 years, and I can tell you that if any of these elements are not well done, any cloud project will stall. And these are having a clear strategy, a very good business case because going to the cloud is expensive and how you're going to -- and what it is the return you want to have. A cloud changes totally the operating model of our clients, with new processes, with new skills for their people, new set of technology, and obviously, having a very clear understanding of what it is the risk and what it is the governance and a very secure compliance and architecture. That's the area where, for example, in Cloud Smart, we provide consulting and implementations. Another element that we bring to the market and it helps us a lot to interact with our clients is what we call Smart Days. For example, for a large Nordic bank, we run a Smart Day. We do a tremendous work into their traditional business. And together, we evaluated what was the best path for their application to modernize and how to evolve our operation and their operation in a Cloud Way. And that allowed actually the bank to maintain a very stable business as usual and then start launching new cloud to market because we were, at HCL, able to do, both in the client and the Cloud Smart, the strategic view about to take the next steps. Cloud Smart is developed is delivered by a set of holistics. And when I say holistics, I mean that we have been able to aggregate and rationalize all the best solutions that we have across HCL in a combined offering and capability platform that we provide from advising to design to build and run, from industry cloud, all the way to managed services. This platform has proven to sustain around 3,000 use cases of cloud, and these use cases grow every day as we move new pathway for cloud. As well, we have 1,000 patents, filed patents for multi-cloud automations and development. This beautiful canvas as well is at the base of one of our growth pillar. And why is that? Because you talk -- you saw some incredible testimonials from Volvo and Pepsi, and we do a great work. But the ability to have an open canvas end-to-end solution, we can upsell and cross-sell to our clients' solutions that we don't do now or we can decide to attack on a competition or to expand our wallet. For example, at Pepsi where we do a great job. It was only natural that they were thinking about migrating to the cloud to call HCL and to start that journey together on the strength of the great partnerships that we have. So now let's talk -- come to what I think the most interesting development of the last 4 years in the cloud market. So in the last 4 years, from horizontal solutions of infrastructure and databases and network and integration, the market has pivoted to be able to use cloud-native solution to build industry-specific solution they are targeting to solve industry-specific needs. And they are built native. They are normally standardized, but the SIs like HCL take their solution and tailor it to the need of the clients. We talked about the PLM that we have done with AWS. In the retail market, we partnered with Microsoft, and we've built a very interesting solution on the Azure platform called Retail Insights -- In-store Insights is a real-time ability to look at the goods that you have in the store, sync it to your warehouse and do real-time restocking so that you can maintain the greatest demand. By the way, most of you don't know that retail -- that HCL has been just named one of the main leaders in the Avasant radar just for retail. So let me give you -- this is a little bit of a secret that we hope to unlock. HCL has tremendous domain knowledge. We wouldn't be able to build solution like Vijay does without the domain knowledge that we have. And I would say telecom, we've thought about financial services, manufacturing and health care are the rock pillar of the domain knowledge. The other thing that in this market, you need a different type of domain knowledge. We are used to the domain knowledge of the big 4, of this and that. Now in this market, you need deep technical system specific for that industry so that you can decouple the legacy application, and rebuild it in the understanding of what that solution has to be for the future. So this plays extremely well to all our areas of strength: engineering, scale with foundation and modernization with the digital platform. One area that I'm really, really pleased of the work that we do in the industry cloud is the collaboration that we have with our ecosystem partners and in the sustainability area. So we've built a great smart manufacturing with AWS, where the #1 KPI is how negative we have to be any -- at any impact to energy. The second one, we build our Green Edge sustainability platform on the Google technology and as well, we helped our client implement the carbon footprint of SAP 21 that we combined with our rapid analytics. And in 8 weeks, we allowed our clients to have a good understanding of where their situation of sustainability is data driven to be able to have a base to what it is their North Star in sustainability and start the journey now with the goal and the KPI, and as well to be able to report this goal and KPI if need so. So let's summarize a little bit the pillars that we have. So we have, obviously, our talent engine is a skilled global certified workforce today around 50,000. We have a strong plan to double that number in the next 18 months. We have an end-to-end approach, as I told you, from consulting to development. And obviously, the strength that is throughout the DNA of HCL in -- it is innovation, and let me give you an example. In our cloud-native lab, we have developed an HCL recertification program site reliability engineering that it is the base of operating cloud-native applications. It is the only program in the market, is a hands-on virtual environment where we take our client's employee on a 6 to 8 weeks boot camp in their domain and their cloud providers. In a Swiss bank, we have been able so far to train 100 SRE that they are supporting the movement of that organization to cloud-native products. The same boot camp we used to train our own people when we are starting moving from traditional managed services to cloud-enabled managed services. So I can talk to you about how great HCL is, and I'm biased. I'm here. I love what I do every day, but it is not just me. HCL is recognized by most analysts as leaders in 40 of the most important reports in clouds. And we talked a lot about this Magic Quadrant, and it is an interesting dimension because it speaks as well at the position and the trajectory for your evaluation of evaluating HCL in a different way. So the Magic Quadrant was the first in market. In a kind of way, Gartner has aggregated 2 or 3 Magic Quadrants and under one single one, they look at public cloud transformation and the impact of the SI. And last year, we came smack in the middle of the Leaders' Quadrants with 2 other very well-known competitor. I can tell you, first of all, for -- in confidence that this year, you'll find HCL in the same or even better position, and that we have been able to maintain and will keep growing this position through our consulting-led comprehensive set of offering and the strong partnerships that we have been able to show the analysts through the testimonials that we brought for the evaluation. Obviously, our ecosystem partner recognizes in our impact to their revenue and to their clients with Partner of the Year. But I think the best way is to really look at Marianne for Microsoft that really explain in a very simple way that this is a long-lasting relationship that HCL is committed with the business unit to the success of Azure, to the success of clients on Azure and as well on the development of industry cloud solution on the power of our engineering and on their technology. This, again, we are developing a solution for the health care market. Lastly, Microsoft appreciates very strongly the impact that our Cloud Natives Labs brings to, what I say, the ability to -- for our clients in a virtual way to come around and play with cloud in the real life and via real-life technology, bring their own applications. We do what we call a modernization experience. And in a week, we take an application, we modernize, we show how to implement it in SRE, and they can touch and feel it. And we have sometimes in 3 ways: it's ourselves, it's the cloud providers, the clients and the client -- and our own employees that support that client. Again, the best of cloud happens -- at HCL happens at the client base. So I have so many, and you've really seen so many implementations a success story. But I picked these 3 because they really represent the 3 pivotal strength point of HCL and Cloud Smart and HCL cloud strategy, and that's the talent. And second is our partnership with the ecosystem, and our over focus on bringing innovation to our clients. So let's talk about this large bank in Europe. That was -- is a strong and is an ongoing very strong partnership with Google, where sometimes they lead, sometimes we lead. We work in a very integrated manner with the clients. We are looking at their retail banking. We are looking at all the application part of the data and creating modern and contemporary architecture. And the goal for them is fast acquisition of new clients because the old platform had so many step from them to go through that it was very, very slow to onboard new clients. We have a large pharma company, and we are partnering there with AWS. We're doing a thorough migration and modernization modern operations. We were able straight away, as soon as the project started, be able to concretely return $2 million saving. And we are tracking the benefits. But the both -- the most important saving that this pharma is saying to us is the ability to have a contemporary architecture for them to push product to market at speed. This Australian Bank is the same Australian bank that Rahul has talked about, but I want to go through how we went -- how we got to this $40 million business -- extension business on top of an incredible business that we already were doing. And again, we brought in our Design Thinking, our Cloud Smart approach, trying to navigate with the client what was the best path for their modernization and simplification of the architecture. And we were able to award actually in a fairly short time frame a 5-year commitment, $40 million, for migration and operations. The last one is a 3-way combination. We have Microsoft and our cloud labs enabling this large telecom European company that really had a request of a lab on-demand to be able to do research, to look and validate some of their products on 5G to do MVP at scale. And there, they had a fully-fledged Microsoft environment with HCL technical resources to help them go through. So the quote for the client to me was, "This is really HCL being a business enabler." We were able to cut down the production and visualization and initiation and ideation of new product in a dramatic way. So another great testimonial. So here is Merck. We have a tremendous relationship. And you will see and you've probably picked up this message throughout the presentation that our big asset is our client and how our facilitation and acceleration for growth is having the ability to harvest these large, large implementation, interject modernization in cloud and maintain this relationship for a larger share of wallet. So on that note, let me take you through some of the levers that we are going to use and measurement for real cloud growth at HCL. As you can see, our hyperscaler growth is substantial, 20 to 40. They grow, we grow. Our symbiotic relationship I was able to explain to you. We have a 3 pathways: we sell to, we sell with and we develop solution together then sell to the market. And that lever and philosophy and synergy is at the heart of some of our growth. The second area where we want to improve on one of the goals of CVK that it is improving our cost per employee, it is the cloud factory -- cloud service factory delivery model. This is a model that is overfocused on automation on the balance of people to machine and automate as much as we can so we can improve the margin of automation. We are recreating run books and organization skills and processes and platform so that we can provide faster time to market, and that will be a lever; and obviously, changing or augmenting our traditional time material or resource base to more outcome-based type of contracts. Now we launched a CAP Program this year around August last year. And we have -- because we are so convinced that our clients really want to hear from HCL and our story and want to see our product. And we analyzed all of them. We looked at our book of business. This is hundreds of our largest clients. And for each one of them, we have built path and interaction. And for the first time, we went in and initiated the conversation of cloud. That's creating a tremendous interest. And as well, again, we bring not just one side of HCL or the other side, it's the power of all our offerings, from digital foundation, digital business, ERS, we do a lot with the IoT and the cloud-native world. We have a strong plan of investment in our people. They are the pillars of what we do. Their growth in the cloud market, their skills would produce acceleration and as well, employees or the company that trains them to take them to newer skill and as well, we'll continue to cofound with our ecosystem partner new solutions to sell together. So I hope that during these sessions, I have given you a view of a different way of how cloud and Cloud Smart and the ecosystem partner is actually changing and accelerating the business of HCL and how heritage, deep technology knowledge is the heart of the innovation that we bring, and our clients' relationship is the foundation of this acceleration for growth. Thank you for listening.

We want to talk a little bit about our journey so far. I mean, we are here 2.5 years down the line. We want to talk a little bit about it. What are the markets that we are addressing, how we segmented this market. Our integrated growth strategy, and Kalyan has been actually working on designing that. And Kalyan, I'd like you to cover that. And some key met prices. And I'm sure some of you may be interested in terms of how are our customers looking at our products. And we've got a lot of stories to share with you and some case studies, right? Their agenda is what we want to cover. So when -- HCL has been a product company, right, our engineering and R&D heritage. We've been building products for others. I mean, there are lots of firsts that are associated. Vijay talked a lot about them this morning. So we said that there is value in HCL getting into products. And when we want to do that, essentially, we have 2 key objectives. And that's very, very important for us to recognize. We wanted to get market permission. We wanted to get market permission to say that we are a credible enterprise software provider. Very, very important. And when you look at the context of our business, I mean, a lot of people ask us questions, what's happening, what's happening? I think just it's very, very important for all of us to recognize that we wanted to get market permission to be recognized as an enterprise software provider. We wanted to get a bunch of customers at enterprise scale and in that, get an opportunity to play in that market space. So that was the key core cornerstone of the approach that we took to this area. So I think when you look at the performance of our business, that is the context in which you need to look at it. So from our partner, bulk of these 6,800 customers transition to HCL. A very, very important milestone. There are significant relationships in the software context. And we picked up a number. These customers are customers that are greater than $10,000 relationship in our business. And that's an important thing to recognize. We have to value every single customer that we are servicing. That's the reason why we measure that. And we say every customer, 6,800 customers. But at the same time, we've got 68 out of Fortune 100 customers that we are servicing. There's 223 out of Fortune 500 customers that we're servicing, 241 of the Global 500 customers that we're addressing. There are 278 public sector and government customers that our software serves today. And it's pretty significant, 775 business partners. Now that's a very, very strong channel that we have to take a whole range of software to our customers. 132 countries. So we service customers right from Chile right up to Norway and Sweden, from the West Coast of America right up to Japan. I mean it's -- virtually, 132 countries is where we are servicing these customers. And we've got a sales force of 750. Somebody was asking me, "Are they all quota-bearing?" Yes. They are 750 quota-bearing salespeople that we have in this organization. There are 75-plus products, and some of the products have earned a good brand for themselves. They're AppScan, BigFix, Unica, Commerce. Perhaps when you get a survey from this hotel as to what do you think about the lovely lunch that you got, there's a very strong likelihood that e-mail has come from an HCL software, okay? So that's what we have. That in the context of the 2 goals that we set ourselves, the objectives that we set ourselves, this is where we are. So I'd urge you to think about -- when you think about our software business, this is the context in which you must think about it. So KK, I want you to talk a little bit about the markets that we are in, what is the role that we're playing. So I'll give you the kicker to you.

Thanks, Rajiv. So what we tried to do was to really -- and I have a follow-up slide, which explains the entire collection of 4 different product groups and how we are looking at transforming them. But it's very important to get to understand what segments we are playing in. So we primarily operate in 4 big software segments where there is solution segments on which there is a software component inside that. The software component would be software deployed in the data center, hybrid or running on cloud or SaaS. Within that, if you really see the target addressable market for us, it's about $17 billion around the digital transformation market, even though that's -- as the morning CVK talked about, it's a $0.5 trillion market. But in fact, it's a very focused software subset of what we deliver. Within that, the CX and DX space, the customer and digital experience, we've got 3 strong products, and there is a next slide, which even gives you a color of number of customers we have in each one of them. So Commerce, Unica Discover, which used to be formerly called [indiscernible]. It allows you to map the whole user journey and provide a lot of customer insights. We play in the pro and the low-code application platform, primarily centered around a product called Volt MX, which is really the modernized version of what we picked up from Temenos Kony. It allows you to rapidly build PWA, multi-experience applications to be deployed from your wearables, to mobile, to web HTML5 PWA and that kind of applications. And then there is a segment and at the tea break, I was always being asked saying that, "What's this mystery about Notes?" And really to give you a perspective that Notes is just a small subset of this whole play. There is a niche segment, and I think you talked about 276. We're seeing interestingly a very subsegment of the market and off due to the recent sovereignty and other trends, there is a $2 billion, $2.5 billion addressable market, which is around secure collaboration, which does not want to put it on a public communication infrastructure. This could include governments. This could include even large corporations who want to secure certain percentage of their environments for communication meetings. And we're seeing some very interesting traction from telecommunication 5G MECs to host secure edge collaboration platform. It's a very small subset. It's not trying to play into the general collaboration which we have. So you've got a certain set of products in that. Automation, I think we've got most of our products here are built, which is organically developed. And we have 2 very strong products which we own in this space, which is BigFix, which pretty much secures 100 million-plus endpoints. It's one of those unique products which can operate from endpoint to cloud. Now it also extends to OT devices in the recent release of Raspberry Pi and a lot of other edge device support into that piece. Workload automation. Pretty much with the advent of distributed cloud and even now mainframes moving up into a cloud-delivered environment, going all the way up to the edge, managing workload and jobs [indiscernible] is going to be a very, very critical play. So we've got some products in this space. Data. We have at Actian primarily and with one large hybrid cloud data warehouse product, which plays in that market. It's a big growth market. We've just completed the full integration of Actian into HCL P&P. It used to be a jointly operated entity with Sumeru. It's got effectively transacted from the start of this year. And then we've got a very specialized focus on 2 big industries. And I think in Vijay's session, he talked about this big explosion around 5G and Industry 4.0. We've started to organically build and also with IP partnerships and, in certain cases, acquisition of very focused assets, which we are building around 5G service assurance. So we are building assets which are primarily to help manage radio resource management up till the packet core, and we're going to partner with the extended ecosystem of V and VNF creators and really build around those service assurances. Exactly what we are doing in the automation market in the enterprise hybrid cloud, we're going to focus on the telco 5G. And then a set of interesting assets, including the one which we announced yesterday, an acquisition of a very super-specialized MRO and aftermarket service software platform capability, just addressing TTL in certain industry segments. So this is where we typically operate in the sum of the products, this thing. Just to give you some context, we run real big, complex systems. So many a times, because of sometimes one, two product commentary, we lose the bigger picture of what do we run. I think $2.21 billion because our Commerce engine has a tracker which tells you how much of systems or transaction is processing as part of the other platform because it's something data comes back to support was $2.21 billion last fiscal year of orders fulfilled through the Commerce platform. You pick a large retailer in North America and Europe, in Asia Pac. They're on the core Commerce platform. In Commerce, and I think in Anand's session, he talked about a lot of this whole experience transformation. Commerce is a unique platform where when you deploy it, you have to build a lot of capabilities around the Commerce ecosystem. It's not about one product. You have to do the whole front-end experience. You have to work on the back-end integration. You want to build the entire multi-experience access to all those channel integration. So there's a huge amount of services opportunity, which is created for both our HCL services team and also software partners to start to build around the Commerce ecosystem. And as Rajiv talked about, I think this hotel is one of the customer. Actually, they run this platform. So hence, Hyatt Worldwide uses the Unica platform to basically deliver survey campaigns and those pieces. So yes, 1 in 3, you would typically see these products being used. We manage about 100 million endpoints, which is -- looks like an okay number. I think we want to add more. And I think the endpoint explosion happening, more IP devices connected, this will become a big play. We do about 2 million monthly conversational AI on our CIR platform in DRYiCE, about managed 1 million server endpoints on our AIOps platform. So we've got some sizable scale today in these rather segments. Data, again, we have a significantly ground-up engineered product called Avalanche, which actually is the only hybrid cloud data warehouse in the world, which allows you to run the same data warehouse on cloud-native across multiple clouds, including your edge, on your data center and also on top of Google Anthos and those in your data centers. It allows you to really deploy your data closer to the edge and down to the cloud in a hybrid architecture. It's completely consumption-based model, which means you consume based on an Avalanche units structure. It's a very, very -- and it's growing quite as an interesting product line. It's fairly new, but it's got a unique high-performance differentiation. It's like 50% to 70% cheaper than the nearest competitor and about close to 5x faster than what it delivers. On industry software, we have some very interesting products, especially we manage about 3 million cell tower endpoints. It's quite a sizable one. In this room, if you're running a mobile phone, there is a high chance you are touching HCL ANA, correct? Some of the largest telco operators in India use ANA to manage their radio resource management pretty much. And this is unique because this is the only -- one of those few products which allows you to manage multi-vendor radios, which means you could be on Nokia, Siemens, Huawei, ZTE, Alcatel. It doesn't matter what radio technology you are on. It allows you to manage them across 2G to 4G. Now we are building a lot of 5G applications to expand and support the 5G network. We have -- and I have yesterday -- I'll talk about this a bit later on the WiFi devices. So what are we really doing around shifting the product portfolio? So if you really look at today across the overall from an HCL product standpoint, we've got the core HCL software, which I think Rajiv talked about, the big chunk of our customers came in through that. We've got products like Commerce, Unica, DX, Volt MX, Domino. We still have about 8 million applications on Domino. We still have customers who have to be sustained and modernized and given a clear road map, and we continue to do that. BigFix, AppScan, and a few other products in the security ops space. We've got completely organically developed software products in our DRYiCE product portfolio, especially IntelliOps for basically helping doing AIOps and observability. We've got our digital workplace solution around AEX. And we've got iControl, which allows you to do business flow monitoring. It's about giving you insight into how your business process is performing in a digital environment. We have software in industry products and then in Actian. So one of the things which we are going forward looking to is rather than looking at them as separate product units, we are looking at this as with one integrated go-to-market organization, which Rajiv is really working towards stitch together where we have access to this large customer base, having a common way to engage partner, market, sell, service all those customers in the front end. We're going to pivot into this model where we have 7 solution areas where we are going to reclassify and group our product organization. So other than setting up separate teams, you're going to have a product organization just focused on CX and DX. So all products which, including product management, product engineering, PSS, professional services support, to deliver CX and DX in the product goes into one unit. Similarly for pro-code and low-code application platform, secure collab, DevOps, AIOPs, data analytics and industry. So which really start to move away from point product-based, this thing to start to create a product or which is focused on delivering those 4 markets, which we are going to chase. So the digital transformation buyer, the intellect automation buyer, the data market and then the 2 industries, especially manufacturing I 4.0 and telco. So that's the way we are looking at pivoting from the left-hand side to the right-hand side. Anand will talk about how the journey we are taking to go about and do that. I'm going to hand it back to Rajiv, and I'll come back a bit later to give you a little bit more color on the product strategies we're going to give you.

Thank you, KK. It's a very important thing to recognize to instead of looking at individual products, how do we take these products to market in a manner in which the customers are actually consuming these products. And that's an important thing. And when we look at it, basically, we've looked at 6 strategic actions that we want to take in order to drive an integrated portfolio. I mean, that is our go-forward plan. The first is, can we actually start looking at these products in different segments and start giving them a differentiated treatment, right? So that's part one of the strategy. And I'll talk a little bit about how we are segmenting and what is the differentiated strategy we are looking at. Second thing that we are saying is that we're going to increase the renewal rate at which our customers renew their engagements with us. Now it's important for us to recognize that these renewal rates are different for different products. And because when we got these products and customers from our partner, they were at different stage of deployment. So therefore, we are putting our arms around this very important aspect of our business to see what our products, how are they renewing and putting together a strategy for each of those elements to start driving higher renewal rates. So that's an important part of our agenda. Third, is how do we move to a services and subscription-based model wherever the opportunity presents itself. And we aggressively move in that direction. It's important to leverage the 745 partners that we've got and actually start looking at newer partners, which can actually enable the strategy going forward. Look at resellers, which we have a lot of, systems integrators who can leverage these products to create new solutions. OEMs, we've got a fantastic pedigree, and we know customers because of our engineering relationship with those customers. Analytics, embedded analytics as a part of software -- as a part of a product is a done thing. And we know those products well. Can some of our databases be used in those products? Can some of the softwares and ISVs use some of the technology that we have? It is being done right now, and we want to make a deliberate specific action in order to grow that part of the business, leveraging the strengths that we have. A part of our business comes as an IP partnership from our partner. How do we increase profitability of that? And it's -- the strategy is all about customer advocacy, engaging with their customers, enabling the process of getting their customers engaged, providing them higher and faster road maps, and that's the strategy that is going on. And we're beginning to see good traction in terms of that part of our portfolio growing nicely, and therefore, contributing to us. And leveraging the -- so we talked a lot about cross-selling. So leveraging these fascinating customers that we have in order to create -- and CVK talked about in the morning when he said that there are a couple of opportunities that have been opened that are very, very significant because we had the right of way with those customers. So these are the 6 elements around which we're going to plan our go-forward strategy. So if you look at the integrated software solutions offering that we have, we -- essentially, our software gets consumed in 4 different ways. One is the current way, where you've got licensed customers buy on term and perpetual licenses, then as-a-Service, through an MSP and through OEMs. And the markets that we play in are those markets that KK laid out, and then we actually bundled the offers and the proposals that we have and the products that we have in terms of integrated solutions that the customers can consume. So when we look at the segmentation of products, it's important for us to recognize. This is what is happening.

Rajiv, if you could go back, maybe touch upon a couple of the previous one.

Go back?

Yes. So now, Rajiv, the first slide talked about customers 10,000 and above. A lot of these customers want a very easy way to transact. And one of the newer models we are seeing is consumption through an app storage-like model or consume. Like we've got certain products which are very, very attuned like AppScan, right? You do secure coding. And so we have a product called ASoC, which is AppScan on Cloud, which you can run the number of scans and a test in the DAST, IAST or SAST mode, and you basically consume for what you use, right, which really means that you need to move towards an app store kind of an experience, right? Just download it, use it or plug in and consume it, and it's metered in that way. It really means that you need to start to relook at how you deliver license consumption. Similarly, in SaaS, we've identified certain products, which will go as a SaaS-delivered model, which could be a single-tenant cloud deployed, like the way SAP RISE or some of the systems are; or there are certain products which have an attunity, especially like Discover is one multi-tenant product that you could just run it on a multi-tenant model, and MSP could use it or a customer could consume it. And the third is that working with MSPs, we're seeing a very -- BigFix has historically a very large MSP customer base. So we're really trying to plug and expand that. So it's very important to see these 4 models is how we are making it easy for the software. There's no license-only. You could consume on a license, perpetual or term, consumption based on app store, delivered on as-a-Service, buy through an MSP and get an outcome out of that. So I just thought it's important to get those 4 segments.

Yes. So essentially, I think this whole approach of creating offerings and looking at the way the software is consumed is important. So this is how we actually looked at, seeing that, "Look, is there -- should we look at our portfolio in 3 distinct segments, right?" So first is a horizon 1 set of products that actually form about 44% of our current portfolio, which includes product like Domino, DX, Sametime, Connections, OneDB, Verse, et cetera, right? So these are core products in our customer environment. Often Domino gets associated with Lotus stores. But in reality, it is the first original and original low-code software development platform. And there are very, very large organizations that have got their core applications running on it. And this customer base is looking for newer versions of software. They're looking for new techniques of building multi-platform experience applications on top of that. And our strategy is to provide that to this customer segment. As a result of which, we will be able to drive higher renewal rates on these. So this is a segment that in FY '22 declined at 12% on revenues. And these strategies that we've got a clear one, which is to look at the Domino customer base at this low-code -- pro low-code development platform that KK talked about, which we got from Kony, Volt MX. Can we provide -- we are working on providing MXGO as a bridge to have that platform now available to Domino customers so that they can create newer applications on an extremely reliable core platform that they have.

So we have this program called "No Domino customer left behind," which effectively means that every one of them will get a U.S. modernization, which is using the low-code front end with Volt MX. We are currently giving them a program to move formula and LotusScript, which is now called world script and world formula to plug in into the MXGO platform. And there's a very interesting trivia: the core architect of NSF, which is the database which runs Domino, it's the same chap who went and created CouchDB. What he did, he actually built all the Domino triggers inside CouchDB without the app server. So what we are really building on is also give a road map for all these customers as part of MXGO, which sits in our horizon 3, is to give them a complete migration path in a hybrid deployment model to be able to modernize their product, which is the front end, the app tier and the data tier back into the cloud. So this is -- so this is where you'll see a Horizon 1 product has a newer avatar in horizon 3, which is really giving a builder road map. So we're actually really looking at how to modernize the core but really start to build completely new innovation to give a road map and add back to the customer.

Yes. Then we have got products that are classified, which is our CX portfolio, which comprises of our Commerce platform, Unica and parts of our digital experience platform, AppScan, Volt MX, CAPS, et cetera, which forms a part of our -- which is 54% of our software portfolio. In 2022, that portfolio grew by 9%. And here, the strategy is all about making sure that these customers are leveraging the growth and the investments that are going on in these products and taking these customers to a service-led as-a-Service software delivery model. So that's an approach. We've started seeing success, the 13 customers who've actually moved on during the course of last year on our cloud platform, and we are seeing significant traction build on this. The third is a range of products that are growing very rapidly that's formed 2% of our revenues last year and has grown at 24%. And these are actually product, software and solutions that are contributing to enabling our horizon 2 products to achieve their objectives and horizon 1 products to give the modern look and feel that the customers actually deserve. So that's a classical horizon 1, 2, 3 strategy that we're looking at. Horizon 1, which are the core products that we have, which are currently forming 44% of our portfolio; horizon 2, which is 54%, growing at 9%; and horizon 3 products that are growing at a very, very rapid pace and form 2% of our portfolio. And that's where a fair amount of attention will be going. Business partner program is a very important element of our strategy, and we are enabling business partners in a very focused manner. We have created a separate organization to drive business partners in 3 distinct pillars. The resellers and system integrators, we have a large number of those partners. Pillar 2 is to develop and cultivate managed service providers. And pillar 3 is to leverage our relationships with hyperscalers and various GSIs.

So just to add on what Siki talked about is one of the big traction that you're seeing in the session is how customers are using cloud hyperscalers to consume platforms and software. So we actually now have an AWS, Google and an Azure ISP -- a Red Hat marketplace activation program. So we're taking products and making sure they're available as images, container health charts through which you can consume through the hyperscaler. And then we're going to put in a very focused marketing and technical marketing as well as product marketing effort to make this run as co-sell programs with these hyperscalers. So that's the third strategy which you are looking at in terms of how to tap the journey to cloud because when -- as the customers move to cloud, these workloads move to cloud. So which means that rather than you trying to re-host or replatform, you have the application, the modernized application available for consumption to the marketplace. So most of the work is around data and application migration rather than worrying about how to move the app. So I think that's a very important play. And that's where we think our partnership with hyperscalers and also open up the GSI ecosystem because people would need to implement and build services around that.

So this is an important part of our strategy, and we believe it's something that our business partners and our customers are looking at. So if you look at some of the other key matrixes that are important. So if you look at our growth in Fortune 100 customers, it's a steady growth that we are seeing from 34 in FY '20 to 66 customers. These are customers that offer a significant amount of headroom for consuming our software. The Fortune 500 customers are also growing at a steady clip. So enterprise, as I said, one of our key objectives was to get a permission to play as an enterprise, credible enterprise software market. That seems to be moving in the right direction. We also wanted to share with you what is our current mix of revenue. So 67% of our revenue today comes from subscription and services. So that's the portion of revenue in FY '22. That's the revenue that came from there. 30% of it came from license sales, and 3% of it came from services. If you were to look at classification of our customers, we already have 17 customers who have a relationship of greater than $5 million on our software; $1 million, more than 148 customers, close to 150 customers, who then have a tangible software relationship with us; and more than $500,000 customers, we've got close to 200 customers. So that's a quick snapshot about how our customers are adopting our software and using it. And interestingly, KK, I want you to take these and cover a few case studies. On Gartner peer reviews, we find that our customers like our products. They're using it and they like it. So KK, why don't you walk through some of these descriptions and also some case studies.

So these are very interesting. So peer reviews are user-rated. So there is analysts who write about the products. And in Gartner Peer Insights, and if you have seen some of our other services also, it's the end users commenting about their experience on the Gartner as long as they are a Gartner research end-user customer. So we pulled this data for you to give you a sense that we've got products where customers are using and writing about it. They are seeing the benefit of some of the modernization work which has happened over a period of time in some of these products, and they're starting to appreciate and like this. We still have to do -- still a lot more work. We still have to make sure that we keep engaging these customers, keep working on customer advocacy programs. Creating a lot of lab advocates to work with them to keep giving them. And then more and more of these products walk the SaaS and the cloud-native journey, this will start to see better traction. And this is a really positive in a lot of the good work that customer advocacy support and the engineering teams have been doing to continue to build these products. I'll take 4 examples on the 4 different segments. So this is an example of a large customer, one of those multimillion dollar -- one of those greater than 5 million customers, as Rajiv pointed out. It's a large supply chain provider either for in the semiconductor and in the distribution space. This is a -- they are a Fortune 200 company. They are a tech distributor. They have multiple ERP instances, and they wanted to improve their B2B buying experiences. So this client actually deployed our entire CX stack along with SIGNAL. SIGNAL is one of the horizon 3 products, which allows you to -- it's a connected data platform. It starts to give you insights from collecting different metrics across various different touch points in the Web 2.0 ecosystem, collecting all those metrics and really giving you advanced signals in terms of buying patterns, and it also feeds into our Discover product portfolio and uses our digital experience portal platform. Now this customer also is now extending the same B2B platform with our multi-experience MX. So it's a new deal. It's a -- and we've been working with one -- a Tier 2 GSI who's rolling this whole piece out, and they are actually implementing this for the customer in the whole journey. This is a collection of -- this is, again, not point product, but the whole CX suite, which includes Commerce, Unica, DX, MX with SIGNAL. So this is the -- and this customer is delivered on HCL Now, which is our SaaS cloud-hosted delivered model. I think the customer is -- now we are operating the platform as a private cloud incidence on the public cloud for this customer on GCP. I think we had a few more case studies, which are in the back. Okay. So the second one is a very large expense analytics company, which actually provides a very -- their biggest need was to provide sub-second query across millions of records in a very, very conservative format. This customer used to use one of our competitors, the cloud data warehouse competition. And they migrated off that. And they had to also run this in a private instance and in clients' data center because they provide an expense analytics back to their customer, too, in many different ways. So it's an Avalanche customer, consumes about 6 Avalanche units in an elastic model. Again, we charge the customer only for the number of AUs they use at that point in time. So they can spin up and spin down using the Avalanche console at a very elastic way. So it's an elastic data platform. This is delivered at a fraction of cost of alternate solution at 5x the performance. So this is a second example of what the data set of our business is doing. A third example is a very large European oil and gas major. Their single-biggest use case was that every time there was an oil price -- oil barrel price change, they had to go and update all the fuel pumps with the newer pricing. So that is a very complex batch online multisystem distributor process. So they used one of the DRYiCE products called iControl, which gives -- and the process they monitor is barrel price to fuel pump price update, and they're able to look through is that price update happening on every retail fuel station. If not, they're able to actually see a business event, which then correlates back to an underlying app, process infrastructure, database issue. And they're able to quickly correlate and fix it using the IntelliOps stack. So this is a -- and the quantum impact of what this delivers for the license fee is like -- would be like 300x, 500x of what they would be using to subscribe to the software platform. And the last one is -- so we've got an OEM-able product. This is an example of I want to give us an OEM-able product. It's a cloud-native wireless land controller designed for hyperscale WiFi access point deployment. One of the largest 5G operators in Japan uses this technology called HCL SMARTWiFi. And this actually is supporting close to about 90,000 access points on a single controller deployed on cloud. It's a very rapid high-scale architecture, completely ground-built as long as -- and the uniqueness about the solution is if you have a Qualcomm chipset, lightweight access point, you can just download this software and deploy this access point. Currently, they're looking at trialing the same thing in Germany. The use case for this product is stadiums, retail malls. And the whole model is we don't want to sell this product. It's going to be sold through the telcos who are now setting up massive 5G and WiFi 6 access points, which is currently getting rolled out as part of the whole move towards the fixed mobile convergence. So just to give you a color of some of the products and where they're getting deployed at scale. I think I'll hand it back to Rajiv to conclude, and then we will take questions.

So I think just to kind of summarize what we covered and shared with you today is the success we've had in terms of getting our customers of a particular profile. We've shared with you what is -- how we've segmented our products and what kind of treatment that we are providing to them and the strategies that we've adopted in order to address the customers in those product segments. And we've shared with you how the products are positioned in the market, what is the kind of response we're getting from our customers, and overall approach to -- of 6 strategic moves that we are making in order to drive our business forward. We gave you a flavor of the mix of our business by way of subscription, license and services business, and how the customers in the enterprise space are growing, and a flavor of some case studies.