Tech Mahindra eyeing 10% revenue from digital services: Anand Mahindra

By: |
New Delhi | Published: July 29, 2015 6:55:02 AM

After bigger rivals TCS and Infosys, IT firm Tech Mahindra is also betting big on digital services and expects the new technologies to account for 10 per cent of its revenues in the coming year.

After bigger rivals TCS and Infosys, IT firm Tech Mahindra is also betting big on digital services and expects the new technologies to account for 10 per cent of its revenues in the coming year.

Speaking at Tech Mahindra’s Annual General Meeting, Chairman Anand Mahindra said the company has over 2,500 people trained in digital specialisations and over 200 consultants to tap into the multi-billion opportunity.

“The trend of customers and consumers switching to digital technology is in the early stages of adoption, and this part of the business will continue to see acceleration,” he said.

Mahindra added that this as an area of rapid growth for the company and therefore, it is investing in training, development and partnerships in this “newly emerging area”.

“We expect the digital business to clock around 10 per cent of the revenue in the coming year,” he said.

Tech Mahindra had posted revenues of Rs 22,621.27 crore for the fiscal ended March 31, 2015.

In the first quarter of 2015-16, its revenues were up 22.9 per cent year-on-year to Rs 6,293.8 crore.

The company had set up a Digital Enterprise Solutions (DES) function in 2012 and had announced that it would strategically focus on five key focus areas — Networks, Mobility, Analytics, Cloud and Social, Security and Sensors.

“We have been witnessing steady traction in these areas…In the field of automation, we have synchronised our various initiatives by appointing a very senior leader responsible for integrating all the automation activities across Tech Mahindra,” he said.

He further said: “We have future ready platforms across the cloud, analytics, social network, order management, and managed data services.”

While announcing its quarterly earnings, India’s largest software services firm Tata Consultancy Services had said it will train one lakh people this year as it expects its revenues from digital services like cloud and mobility to increase significantly. It currently gets about 12.5 per cent of its revenues from digital services.

Infosys, on the other hand, did not give any such numbers but remains bullish that clients are turning to digital services to transform their businesses.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.