TechMa seeks to scale up N America biz

MUMBAI: Tech Mahindra (TechMa), the software services arm of the diversified Mahindra Group, is looking to expand and increase capacity in the Americas, as it looks to scale up in its largest geography by revenue.

“Americas is clearly a huge focus area, we are investing in new development centres in America to be close to the customer,” CP Gurnani, MD and CEO, Tech Mahindra, told HT on the sidelines of the Nasscom India Leadership Forum.

As part of its investment in delivery centres in America, some of its existing ones, such as in Fargo and Dallas, are being augmented. Its delivery centre in New Jersey, which looks after cyber security and the one in Louisville, Connecticut, which provides engineering services, will also be scaled up.

For the quarter ended December, Americas accounted for 48.8% of TechMa’s revenue.

TechMa will also continue to seek acquisitions to grow, in sectors like BFSI (banking, financial services and insurance) and health care. “M&As (mergers and acquisitions) are clearly a part of our strategy and for a right service offering and right market entry, we will look at acquisitions as an option,” he said.

Gurnani feels 2015 will be a somewhat challenging year, given issues such as the slowdown in Europe and the declining oil prices will also squeeze budgets, particularly in the oil and gas sector, which accounts for 5% of TechMa’s revenue.

Despite challenges, he sees lot of opportunities in areas such as governance, risk management, digital and cyber security. “Network and communications, digital enterprise solutions and cyber security — these three will be able to drive the market,” he said. The Indian economy will also get a fillip this year, which should help grow business, he added.