I.T Employees work at their desks. (Photographer: Dhiraj Singh/Bloomberg)

Increased U.S. Spending To Aid Indian IT Firms, Tech Mahindra CEO Says

The Indian information technology sector has turned the corner in the face of rapid technological advancements and a stronger U.S. economy. That’s the word coming in from CP Gurnani, chief executive officer of Tech Mahindra Ltd. which reported strong earnings in the September quarter after two quarters of muted growth.

According to Gurnani, the revival in Tech Mahindra’s business and in the IT sector in general has a lot to do with the state of the U.S. economy, that contributes nearly 50 percent to Tech Mahindra’s business. “With the U.S. macro indicators looking good now, the sector has moved past the apprehensions observed in the year beginning,” noted Gurnani.

Besides, the U.S. tax overhaul bill will provide leeway to the U.S. companies to increase their global spending, said Gurnani. This will serve as a key positive for the Indian IT sector as it is more digital and automated than its peers across globe, he added.

Indian IT companies are rebooting themselves and have realised that it’s not just the Trump effect that is bringing about change, but the technological consolidation globally that is changing businesses
CP Gurnani, CEO, Tech Mahindra

Commenting on the company’s “3-4-3” business model, Gurnani explained it as the three mega trends identified in the sector, four big bets that the company is eyeing and three key objectives to be worked on for delivering best results to the customers.

The mega trends are:

  • Explosion of connected devices
  • Power of new technologies
  • Exponentiality of content consumption

Big best are as follows:

  • Integrated digital device experience
  • Internet of Things
  • Software Transformation
  • Networks of future

Set objectives to be worked on are:

  • Run better
  • Change faster
  • Grow greater

Watch the full conversation here: