Tech Mahindra, the telecom-focused technology company, is increasingly focusing on its R&D initiatives to come with software solutions that would give it an edge in an increasingly commoditised IT services business.
Tech Mahindra currently gets over 60% of its revenues from the telecom segment and has identified around 15 areas around this vertical where it can build deep expertise.
Tech Mahindra strategic initiatives president Sanjay Kalra said these R&D initiatives will bring in an innovation cycle and help it get a higher pricing than the conventional IT services. He added that the days of cost arbitrage advantage based on the dollar-rupee is almost over for the Indian IT industry.
For Tech Mahindra, being ahead of the business cycle will only mean that they will have to come out with newer solutions which will be complementary to its existing services business. Currently, it gets around 10% of its revenues from this segment.
Mr Kalra said it would be constantly building the technology proof of concept around these business areas which include IPTV, Wimax, VAS etc.
Other software services majors like Wipro and Infosys have also been working towards this strategy. Wipro, for example, has already come out with its proof of concept for the retail sector with a technology solution.
Tech Mahindra, which currently has around 22,000 people, registered revenues of Rs 2,920 crore for FY07 with a net profit of Rs 121.5 crore.
Mr Kalra said Tech Mahindra would be keenly looking at acquisitions, provided the target company brings in either market access or a technology capability.
Source : ET
Tech Mahindra currently gets over 60% of its revenues from the telecom segment and has identified around 15 areas around this vertical where it can build deep expertise.
Tech Mahindra strategic initiatives president Sanjay Kalra said these R&D initiatives will bring in an innovation cycle and help it get a higher pricing than the conventional IT services. He added that the days of cost arbitrage advantage based on the dollar-rupee is almost over for the Indian IT industry.
For Tech Mahindra, being ahead of the business cycle will only mean that they will have to come out with newer solutions which will be complementary to its existing services business. Currently, it gets around 10% of its revenues from this segment.
Mr Kalra said it would be constantly building the technology proof of concept around these business areas which include IPTV, Wimax, VAS etc.
Other software services majors like Wipro and Infosys have also been working towards this strategy. Wipro, for example, has already come out with its proof of concept for the retail sector with a technology solution.
Tech Mahindra, which currently has around 22,000 people, registered revenues of Rs 2,920 crore for FY07 with a net profit of Rs 121.5 crore.
Mr Kalra said Tech Mahindra would be keenly looking at acquisitions, provided the target company brings in either market access or a technology capability.
Source : ET
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