NIIT Technologies, the mid-tier IT services firm, is eyeing a higher share of revenue from the US and Western European markets as part of its portfolio rejig strategy with lesser dependence on the domestic government business.
The US market accounted for 44% of NIIT Technologies’ revenue at the end of the December quarter of 2014. Arvind Thakur, CEO, NIIT Technologies said, “We want to increase our emphasis on the US market which we feel is still underserviced from our perspective.”
The US is the world’s largest technology market and accounts for more than 60% of Indian IT industry’s exports. This market is also now showing strong signs of revival boosting the prospects of Indian IT companies.
Thakur said that NIIT now is very clear that it wants to increase the business from western markets, which had been impacted from the global economic crisis starting in 2008.
The company has set three clear priorities: Increase the proportion of revenue from the US, scale the infrastructure management services business and lastly focus on providing digital technology services.
During this period of global economic crisis, NIIT Technologies had increased its focus on the domestic government business, but had to scale it down due to pressure on margins and collections.
Thakur said it has reduced the domestic government business to less than 5% of its overall revenue and will now be focused only on select projects and verticals. The company is already engaged in certain smart city projects in Gujarat and Maharashtra.
NIIT Technologies reported a revenue of R595.3 crore at the end of Q3FY15, a year-on-year growth of 1.4% while the net profit stood at R48.2 crore with a y-o-y growth of 9.2%. The company generates 40% of its revenue from the transportation vertical followed by the BFSI segment at 33%.