Mphasis, a mid-tier IT solutions provider, is seeing large deal activity in the GenAI and AI space, with the transformation projects potentially spanning two to three years, Nitin Rakesh, CEO of Mphasis told FE.
“A third of our pipeline right now is AI influenced—a pretty big jump. We do expect that almost every technology tribe that we have and of course every solution will see AI creeping into it,” he added.
The company recently launched two AI-driven products: Mphasis NeoCrux and Mphasis NeoZeta. These platforms aim to enhance software engineering efficiency and drive enterprise modernisation. NeoCrux is designed to improve the productivity of agile teams, while NeoZeta focuses on enterprise application modernisation.
“We believe we’ve seen up to 50% efficiency and faster relearn with our beta clients,” Rakesh said.
Mphasis is also seeing a transition of some use cases from the discovery phase to deployment. The company’s AI Foundry, launched in collaboration with AWS, is pivotal in this transition. “The opportunity to take an idea from the foundry into the overall solution is what’s exciting over the next couple of years,” Rakesh said.
The US market is ahead in enterprise AI adoption, particularly in the banking sector, which is known for its early adoption of new technologies. “Typically, US banks are forward-leaning on tech because they’re early adopters,” Rakesh said. This trend is also visible in other consumer-facing industries such as media and retail, which are quick to adopt innovative technologies.
Growth in BFSI Space
Despite challenges in the previous year, the banking and financial Services (BFSI) vertical is showing signs of recovery. Mphasis on Friday reported a 1.1% year-on-year growth in this sector, reaching Rs 1,630 crore.
“We were pleased that we showed sequential growth in BFSI in Q4 and then we put a second dot on that with Q1 sequential growth as well,” Rakesh said, indicating a positive direction for the sector.
Further, the overall discretionary demand environment is also showing signs of recovery. “We are recovering from a pretty harsh macro environment over the last 18 to 24 months,” Rakesh said.
In the quarter ended June, Mphasis reported nearly flat sequential revenue growth, but managed to expand their bottom line by nearly 3%. The company’s revenue from operations rose 0.2% quarter-on-quarter to Rs 3,422 crore.
The company secured new total contract value (TCV) wins amounting to $319 million against $177 million TCV recorded in the March quarter, with 84% of the new TCVs coming from new-generation services.
