Tech Mahindra is aiming to beat the Nasscom industry guidance for the next fiscal, says CEO CP Gurnani.
Tech Mahindra will perform better than the National Association of Software and Services Companies (Nasscom) guidance for the IT industry for the current fiscal year, said CEO CP Gurnani, adding that the company is aiming to beat the Nasscom industry guidance for the next fiscal.
Nasscom has guided for growth of 7-9 percent for FY19 for the IT sector. "FY20 and FY19 cannot be the same because we believe India will continue to play an important role in overall global economy. Secondly, we do believe that the US and China will come to some kind of arrangement or a reconciliation," he said, adding that the uncertainty regarding Brexit will come to some level of rest.
He does not think there would be a dramatic change in client Budgets because of uncertainty because there is demand due to all the technological changes happening. "Reality is that AI is now becoming all pervasive and when that happens, machines become smarter, then human beings will create more value. So there will be a paradigm shift and therefore FY20 will be a lot more exciting," he said.
Expect some stresses and strains to ease off in FY20, he added.
With regards to the board meet, he said, "The whole purpose of the meet is to get a ratification of the capital allocation policy and it is a mix of what the company needs in reserves, what the company requires for mergers and acquisitions (M&A), what the company would like to return to the shareholders." Moreover, there would also be extensive discussions beyond buyback with the board on capital allocation as a policy, he added.
He is also of the view that the trend of large deals could be over and give way for many small deals because of digital transformation.Source: CNBC-TV18