HCL Technologies’ move to carve a separate division for its product and platform business is seen as a step in the right direction, to scale the business faster.
“Software and services businesses are quite different, with different business models, capital allocation, talent models and rhythm to revenue and profits. Hence, it would (have been) shocking if HCL did not split out its software and IP into a different division,” said Peter Bendor-Samuel, founder and chief executive officer (CEO) of research entity Everest Group. “In splitting them out, the firm is adopting a well-tested approach that IBM has used for a long time.”
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