Tech Mahindra, a leading IT services company, has announced its plans to invest between Rs 500-700 crore in its newly formed products and platforms unit over the next 2-3 years. The company expects the unit to become a $1 billion business in the same period. The products and platforms offered by Tech Mahindra will expand beyond the telecom sector, where Comviva, a company it acquired a few years ago, has been creating products and platforms. The new unit will also cater to sectors like insurance, banking, and financial services. The company plans to leverage existing customers to co-create products with them, which could improve its margins.
Tech Mahindra also intends to increase its revenue contribution from its partner ecosystem from the current 30% to 40% in a year. The company plans to work better with its leading 10 partners, which include SAP, Microsoft, Amazon, Oracle, and Google, to achieve this goal. Additionally, the company is co-creating an offering for the auto sector in Japan-based Sumitomo.
Tech Mahindra has been focused on improving its margin play for some time now. The company plans to focus on organic growth, margin expansion, and driving portfolio synergies in the future. The move to invest in its products and platforms unit is in line with the company’s strategy to diversify its business and expand its offerings beyond the telecom sector. The investment could also help Tech Mahindra compete with its peers and gain a competitive edge in the market.
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