TechM bets on telecom strength to grow IoT, connected devices biz

Tech Mahindra (TechM) is planning to utilise its strength in serving its existing telecom customers to expand its business in connected networks and internet of things (IoT). The country’s fifth-largest IT services firm plans to drive growth through small platforms to solve problems of clients in a targeted approach.

For example, TechM is offering software-defined network (SDN) solution with an additional layer of IoT in the communication technology services business, wherein it saw sharp fall in revenue in the fourth quarter of the past financial year. The company is planning to offer bundled packages on digital technology areas through focused teams and skills.

It has developed “more than 30 small platforms and all of them function like individual start-ups” to improve the experience of its clients.

“We have built more than 30 platforms since one big platform will not solve all problems. And, the whole objective is to be able to make changes faster. Our focus has been on a 360-degree approach... So we have created a young CEO programme that will run these small platforms as start-ups within the organisation,” said Jagdish Mitra, chief strategy officer.

He added that the company has taken a “very significant bet” in building SDN and network function virtualisation for the communication services vertical and it would offer a combined experience to the clients consisting of styling, design, technology and operation. “Our vision is to be amongst the top five system integrators or orchestrators in the world of IoT. We are trying to drive the whole story of manto-machine connectivity and machine-to-machine connectivity,” said Mitra.

The company’s fourth quarter profits declined more than 30 per cent on the back of poor performance in communication business amidst restructuring of Lightbridge Communications Corporation (LCC), a US firm it acquired in 2015. TechM’s net profit stood at ~2,813 crore on revenues of ~29,141 crore in the last financial year.

Mitra believes the in longterm TechM will drive growth through Agile and DevOps platforms (a combination of software development and IT operations) and people will be skilled accordingly to ensure better customer experience through dedicated platforms.

The company has also built something called a “Second Nest” in the Silicon Valley to partner with start-ups and work on customer problems. “We have created a small unit in the (Silicon) Valley that focuses on partnering with startups. We take customer problems and jointly work with the start-ups.”