IT Services Provider Tech Mahindra expects 5G, home connectivity to drive business growth
According to the IT services provider Tech Mahindra, factors such as digitisation, 5G rollout, and demand for home connectivity will drive the growth of business in the coming days.
The IT major Mahindra expects short-term challenges for businesses owing to COVID-19 pandemic. However, it also believes that the telecom clients will support the business growth.
5G technology would be helpful in easing the pressure on networks, thereby improving connectivity, according to the company.
Notably, around 40% of Tech Mahindra’s revenue comes from the telecommunications segment.
“There will be some headwinds, and those headwinds will be common to everybody, but the company continues to innovate, continues to leverage every of my acquisition and certain businesses where the expansion is likely to happen faster, for example, digital, for example, healthcare, we are doing a double click or a double drilling,” Tech Mahindra MD and CEO CP Gurnani said.
Tech Mahindra expects 5G, home connectivity to drive growth
— Tech Mahindra (@tech_mahindra) May 10, 2020
At present, over 90% of employees in the company’s IT team and approximately 85% in the business process services are working from home, as per the details on the firm’s website.
“The new workspace is clearly shifting more towards the home and that is something telcos, particularly the large ones who have been incumbents, they are all going to be looking at that product mix and all looking at digitisation and strengthening the product mix with the home as the new access of growth,” Tech Mahindra CEO for Network Services Manish Vyas, said.
It is worth mentioning here that Tech Mahindra’s quarterly profit fell as the outbreak of deadly Coronavirus stalled economic activities across the world. The IT company derives a significant part of its revenue from the BPO segment, which has been hit hard thanks to infrastructural constraints.