Tech Mahindra CEO plans to take this ‘route’ to close gap with TCS, Infosys, Wipro and HCL Tech – Times of India

Tech Mahindra CEO Mohit Joshi aims to significantly boost the company’s banking, financial services, and insurance (BFSI) business to close the gap with larger rivals who have traditionally generated more revenue from this profitable sector.
Joshi, who joined India’s fifth-largest software services exporter in December 2023 after a long tenure at Infosys, plans to increase BFSI’s revenue contribution to 25% by March 2027, up from the current 16%. This compares to some competitors in the $254 billion Indian IT industry who already derive as much as a third of their revenue from BFSI.
“We still have a lot of room to catch up,” stated Joshi, whose background includes banking roles at ABN Amro and ANZ before his time at Infosys. He anticipates organic growth in Tech Mahindra’s BFSI revenue share.

Tech Mahindra’s sector leverage has been telecom

Historically, Tech Mahindra has leaned heavily on telecom clients for revenue. However, Joshi intends to leverage his expertise in financial services to shift this focus and drive the company’s turnaround.
“BFSI is the single largest spender from a tech services perspective. It’s very important for us to play aggressively in this space. Large banks typically spend over $10 billion a year in terms of technology,” Joshi explained.
Tech Mahindra, which has underperformed its peers in revenue and profit, will concentrate on core banking, payments, asset and wealth management, custodian services, and insurance. Joshi has already strengthened the company’s BFSI leadership team.

AI is an opportunity NOT a threat for techies

Regarding generative AI, Joshi believes it presents an opportunity rather than a threat. “GenAI is the best spokesperson for why we need more money to be spent on technology,” he said, dismissing the idea that it signals the end for software developers. “I do feel that the overall demand for developers is not going to reduce, because there is a lot more work to be done candidly than there are people just now.”
He also downplayed concerns about generative AI replacing customer service roles at Tech Mahindra. “I’m very skeptical about whether we’ll see a wholesale replacement of contact centers with GenAI because when it comes to critical issues, people prefer to speak with human beings.”