“There has been an acceleration in the adoption of new technology and many clients are migrating to the Cloud,” said CP Gurnani, chief executive of
“The technology modernization cycle continues to gather pace and our positioning of creating experiences through Nxt.Now has seen us gain significant traction in the marketplace,” he added.
Net new deal wins were worth $455 million during the quarter, not including renewals, which are back to pre-Covid-19 levels.
The deal funnel is at an all-time high and the coming quarters are expected to show robust growth with increased adoption of Cloud and artificial intelligence-based solutions, the company said.
Margins improved, largely on account of increased offshoring due to the work from anywhere model, which resulted in a fundamental change in delivery and operating models along with a higher utilisation rate of 87%.
“Our focus on operational excellence has again yielded results as we structurally change our delivery model. We are seeing consistent improvement in our operating metrics and we are confident of continuing on this transformation journey in the coming quarters,” said Manoj Bhat, chief financial officer, Tech Mahindra.
Gurnani said the 5G services had been slow to take off but was starting to pick up and that the company had signed up with a telco in the UK for 5G rollout.
There is also huge demand for human experience management solutions through Born group, a digital transformation firm it had acquired in 2019.
The company has proposed a merger of Born Commerce and Tech Mahindra Business Services, both wholly owned subsidiaries.
Tech Mahindra’s total headcount at the end of the quarter was 121,901, down by 2,357 over the previous quarter, attributed largely due to increased automation in the business process management business.
Going forward, the company has identified 190 key skills for which it will look to hire experts as well as upskill employees.
Tech Mahindra will also start a staggered rollout of salary increases from March, Gurnani said.