‘I will now classify Metaverse as an investment technology. ‘
With a well-thought-out legacy plan, Tech Mahindra has been hiring a new employer for the past 18 months to keep its feet on the big shoes of its chief financial officer Milind Kulkarni, who is retiring on May 31. Rohit Anand, Who will take over as CFO on June 1, General joined IT in November 2020 after 18 years working with Electric and supported by experience working across geographies. Expressed joy Rajesh is ugly On that front, Tech Mahindra expects Telwind from 5G, while insurance will be a big focus. The company will continue to build capacity in Metaverse and will be ready to win projects as the technology matures. Edited part.
Tech Mahindra had a legacy plan long before Milind Kulkarni retired. How did they prepare you for the post?
I joined about 18 months ago and started managing a certain portion of the money, focusing more on customer agreement, planning and performance management. Later, I started communicating with analysts and investors and then started working on accounting, tax and other financial matters. Over the past year and a half, Milind, CP (Tech Mahindra CEO and MD CP Gurnani), Manoj (Manoj Bhatt, CFO of Mahindra & Mahindra Group) and the larger management team have helped me understand the sector and the company. This has made it a bit smoother than coming out as external.
Going forward, what are the focus areas of Tech Mahindra?
As we move forward, our plan revolves around telecom, which accounts for 40% of our business, and 5G will give us a strong tailwind. Insurance is a big focus for us, and supporting this growth will be important within the BFSI (Banking, Financial Services and Insurance) sector. From a business perspective, high-tech, digital and cloud will be important. From a financial point of view, we need to manage price growth, which will help us from a margin perspective. We will look at further junior and offshoring, subcontract replacement with full-time onsite headcount, and consolidation of recently acquired companies. Margin, since there is supply-side pressure, our time will be spent there.
* With Tech Mahindra focusing more on communications, will this change the current revenue mix?
I don’t think the percentage mix will change dramatically because there is significant headroom of market share in the enterprise segment. With some capabilities we’ve created to scale, which allows us to participate in better and bigger RFQs (requests for offers). Both (communication and enterprise) will continue to grow.
* Acquisitions have always been part of Tech Mahindra’s growth. Is this strategy moving forward?
Last year, of the total 17% growth, 13-14% was broadly organic. This year, our focus will be on organic growth for the company because the pipeline is strong and we continue to believe that there is ample opportunity in the market for us. From the M&A perspective, we will be selective and work on the special abilities that we have. From a quantum perspective, it will be significantly less than what you saw last year.
What is Tech Mahindra’s plan for emerging technologies like Metaverse?
Organic growth will come from established technology, BFSI and high-tech and 5G. Similarly, from a technology standpoint, the cloud will be a big driver as more and more people are switching from on-premise infrastructure to the cloud. We expect the Business Process Services (BPS) segment to grow positively double-digit. I will now classify Metaverse as an investment technology. We will continue to build capabilities in Metaverse, complete proof points and pilots so that we have the upper hand to win those projects as the technology matures.
* The biggest loss for the IT sector and Tech Mahindra has been discomfort. What is your plan to prevent talent loss?
On an LTM (last twelve months) basis, our attrition stood at 23.5%, which has stabilized over the last two quarters, with attrition declining in Q3 (vs. Q2) and Q4 (vs. Q3). We have expanded operations in Tier-II and III cities, provided hybrid work models and allowed people to work from their hometowns. We are giving employees the opportunity to improve their skills. We have an in-house platform where employees can update, certify their skills and then opt for better projects.
Where will you see Tech Mahindra in the next five years?
From a revenue standpoint, we are a $ 6-billion company and our aspiration is to grow at the same pace we saw last year, which was a historic high. The long-term strategy is to ensure that we are a valued company from the point of view of a shareholder and customer and the employer of choice.