The company has been an integral part of digitisation and will continue to expand their horizons, said CP Gurnani, MD & CEO, Tech Mahindra.
For the past two years the focus has been on digitisation and have worked with various topnotch banks to make them digital is the word coming in from CP Gurnani, MD & CEO, Tech Mahindra.
The company has been an integral part of digitisation with close to 1 percent of revenues coming from digital opportunities in India, says, Gurnani, adding that they will continue to expand their horizons. The first digitisation boost came with mobile recharge. Second was when utility payments started going digital and third is the demonetisation drive.
"We are fabric behind all the platforms that you see," says Gurnani.
The strategy of the company is to focus on B2B segment and will serve B2C customers through existing banks and telcos, says Gurnani.
Talking on if Trump policies regarding H1B visas will impact them, he says as of now less than 50 percent of their revenues comes from USA and out of the 49 percent revenues out of USA come out of tech development centers where the company trains and skill people in US.
Below is the verbatim transcript of CP Gurnani's interview to Latha Venkatesh, Sonia Shenoy and Anuj Singhal on CNBC-TV18.
Latha: Can you tell us what exactly is your advantage? Is participating in the electronic payments pace increasing and if yes, how does is benefit you?
A: Internally when we had our own strategy meeting about two years ago, the focus was that can you take a wheel out and have a transportation industry, can you live life without fire or can you run a digital IT industry without playing a role in the payments or the financial services? We work in the financial technology industry, we work with many financial technology companies, we work with the banks to make them digital, we work around the world and we have our own mobile wallet products also. We have mobile acquisition products, which is the point-of-sale (POS) products. So yes, we are an integral part of the digital payments, digital banking industry.
Anuj: What percentage of your revenues comes from digitisation?
A: It could be close to one percent. We empower the digital banks, we empower the digital wallets, we are the technology provider, we are the fabric behind all the platforms that you see. As you would remember, the digital industry got a real growth when the recharge industry happened.
Similarly, when the utility payments started going digital, that was the second stage of the boost that it got.
Now thirdly, I believe the demonetisation will clearly move towards the cashless society. We are conscious that cash has been in circulation for almost 2,600 years and a customer would like to have a choice to pay by the phone, to pay by physical card or to do any kind of a net banking or to pay in cash. We clearly understand the challenges of growth but our belief is that if we can target the early adopters, if we can go in with the more aggressive adopters, this industry will transform into a less cash society very soon and Tech Mahindra is playing a very dominant role.
Sonia: You did say you work with various banks to make them digital. Can you tell us which are these banks and what is the fresh pipeline looking like?
A: The largest bank in India State Bank of India (SBI) or Kotak Mahindra or an HDFC or an ICICI Bank -- we provide the technology to make them digital, we provide the technology for mobile wallets and we will continue to expand our horizons because as I said, we are a very small service provider but a very large provider to telecom companies and the banks to make them digital and to participate with them in their digital banking ambitions.
Anuj: You had dropped your payment bank plan, any rethink on that?
A: Both Mahindra Finance and Tech Mahindra have had extensive discussions on this subject. We believe that we will serve the B2C customer particularly in India through the existing telecom companies and through the existing banks. Our belief is that we will focus more on B2B, Mahindra Finance already has NBFC license and if required we will collaborate with other payment bank license holders. We have no plans to become another payment bank in India.
Sonia: Let us talk about the global issues because Donald Trump has once again raised a rhetoric on immigration. What percentage of employees are on the H1B visa, their average wage is lower than the local wages?
A: Tech Mahindra name has not come in any of the other news that you see regarding H1. One of the main reasons is that Tech Mahindra -- in the large corporates -- is the only company, which has less than 50 percent of its revenue coming from America.
Number two is that 49 percent of my revenue that comes out of America -- definitely there is a requirement of onsite people but out of my onsite people, I have my own technology development centres. We have six technology development centres. We do a lot of hiring in US, we train and skill people in US.
So to some extent, we are conscious that US government would want us to become more active in skilling people and we have already started that journey. I can only say that Trump is right that he wants to create jobs in America but at the same time, I do believe that the number of technology jobs that are there and the readiness of industry within America is limited, the demand/supply gap is limited, India incorporated has smart capital, has a ready knowledge pool, it is a win-win for both -- for America and India. As Donald Trump himself says, he is a businessman, he will clearly appreciate there is a demand/supply gap and it is a win-win for both the countries.