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Tech Mahindra is set to expand its European delivery footprint by setting up a new 200-seater centre in Hungary.
Armed with an initial investment of $5 million, the company has identified the capital city of Budapest to provide IT support to an expanding clientele in Eastern Europe, CP Gurnani, Managing Director and Chief Executive Officer, Tech Mahindra, told BusinessLine .
“Some of our customers are expanding into countries such as Poland, Hungary and Slovakia and we are following them. Europe is an in integral part of our vision to clock $5 billion in revenue by 2015,” Gurnani said.
The company has already bagged an anchor customer for its Budapest centre. In the first round of hiring, 50 new jobs will be created at the centre.
Gurnani said the decision to setup the centre was also aided by the tax breaks that Tech Mahindra received from the government.
For the last few quarters, the IT firm has been strengthening its presence in Europe, which accounts for about 31 per cent of the company’s revenue. Business in Europe grew by about five per cent sequentially in the quarter ended June 30, 2014.
Last year, the Mahindra group firm started two delivery centres, one in The Hague (Netherlands) and Brussels (Belgium). Currently, it is present in 17 European countries.
For the quarter ended June 30, Tech Mahindra reported a 8.1 per cent dip in consolidated net profit to ₹630.7 crore, while revenue rose by 24.8 per cent to ₹5,121.5 crore.
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