The Tech Mahindra management earlier this month unveiled a new strategy where they have identified 3 mega trends, 4 key bets and 3 objectives to accelerate growth.
Throwing more light on this new strategy Vineet Nayyar, Vice Chairman, Tech Mahindra in an interview to CNBC-TV18 said the above strategies relate to the changing environment in technology.
Automation increasing at incredible pace, he said adding that the new platform created by them has the ability to reduce work by 80 percent, which is mainly used in telecom sector and is being used by the largest telecom company in ths US.
Similarly, in digitization, the technology is undergoing major shift and Indian IT can only survive if they are in the forefront of it, he said. “I do believe we have been able to show a pathway and other Indian IT companies are doing the same,” said Nayyar, adding that “Technology is going to touch every aspect of human existence.”
The US and European companies are coming to Tech Mahindra for setting up systems for them, said Nayyar.
With no segment of life likely to remain untouched by technology, the demand is only going to grow. So even if new technology may not be labour intensive but it is going to be huge.
One is optimistic of future of technology and Tech Mahindra playing a critical role in it, said Nayyar.
On business outlook, he said in their search for growth they had overlooked some basic economic fundamentals, which led to reduction in profitability but now they are confident of getting their profitability up and about in 12-24 months, so that it reaches the norms of other tier I companies.
He said, cutting edge technology could be around 20 percent of their biz currently but it is growing fast.
With regards to the pricing environment, he said in the new areas it has improved but it also depend on whether the companies are in the forefront of that.
Talking about their earlier acquisitions, he said Comviva is doing fine but Lightbridge Communications Corporation (LCC) requires an overhaul.
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