Tech Mahindra, which has completed the long merger process with Satyam Computer Services last year, sees better prospects for the IT industry in 2014.
Hyper connectedness will hold the key as traditional enterprises find their business models and processes, built years ago, inadequate to meet the needs of the digital world.
“They have no choice but to transform to digital. This transformation requires positive disruptions in the business model, value chain, and business operating model, culture and capabilities. New Year is expected to be better for the IT industry in terms of the IT spends. With the US, the largest IT market, witnessing health recovery, things should turn out to be good for IT companies,” Tech Mahindra Managing Director and Chief Executive Officer C.P. Gurnani told
“We see a lot of positive developments in the US economy. The unemployment rates in the region are falling and the Government schemes are showing results. Recently, IMF also indicated a better outlook for US economy. I have maintained a positive outlook for the US,” he said.
Positive trends Gurnani said Europe had shown positive trends in 2013 and 2014 looked promising. The UK economy was stabilising and Germany was also doing well and with Angela Merkels given another term in office things should only pick up for Germany.
He said the New Year would see enterprises leveraging the power of convergence of technologies such as networks, mobility, analytics, cloud, security, social computing, and sensors. These technologies would help in transforming companies to become digital enterprises.
“Digital enterprises must have predictability in their business value chain, offer digitally intelligent products and solutions and services, leverage collective intelligence of employees, partners and customers. They need to evolve policies and procedures to deal with the next generation employees, customers and partners,” he said.
Geographical focus Asked whether the diplomatic tussle between the US and India would impact the industry, he replied in the negative and said the issue was purely political.
“I do not see it impacting the IT business point of view,” he said. The company, with a turnover of about $2.8 billion, acquired four companies in the last 18 months and has announced a merger with Mahindra Engineering Services, besides absorbing Mahindra Satyam.
“For Tech Mahindra, the Continental European region is showing a great potential. We have won two large deals in the region and there are couple of more in the pipeline. The Asia Pacific region is also showing great traction in the BFSI segment,” he said.
“Sub-Saharan region is the region where we are focussing our energies from a telecom business point of view. We were one-of-the early movers and the move is now showing results,” he pointed out.