Digital services, intellectual property and innovation will be the major drivers of growth for NIIT Technologies, an IT services company.
Arvind Thakur, Chief Executive Officer and Joint Managing Director, NIIT Technologies, said one of the reasons for resurgence of the IT industry is the disruptions caused by the emerging technologies, which has made the companies to reorient and take advantage of the situation.
The mid-size IT services firm reported a 35.5 per cent increase in net profit at ₹58.5 crore in April-June quarter of 2015. Thakur commenting on the Q1 results said turnaround in the US economy, one of the reasons for the good quarter, gives them more opportunity to increase the technology spending in Banking, Financial, Services and Insurance (BFSI) sector. About 45 per cent of its revenue comes from the US. With the focus on improving digital capabilities, the company will look at four major areas – providing better customer experience using technology, analysing data to predict outcomes, involvement in cloud technology for the infrastructure business and digital integration, which involves integration of legacy system with the new platforms.
Thakur said, “Our recent acquisition Incessant Technologies, a strategic move to expand in the digital space, will provide us with the capability to work with the client’s to shift from traditional to completely digital method.”
The company is also partnering with smaller companies that will help leverage their competency using new technologies available in the market, Thakur said.
Cultural shift Adapting to the cultural shift towards identifying customer needs from the requirement-based service is one of the biggest challenges service industry is facing.
To address this, Thakur said for past two years, NIIT is educating the employees and building an ecosystem that will foster new ideas.
“So far 6,000 employees have been trained and 3,000 more will be trained in another two years,” he added.
Stating that intellectual Property platforms account for 10 per cent of the company’s revenue, Thakur said this is yet another area where they expect higher growth.