DBT Insights
The US-based Techwave is a leading global software solutions company with offerings in Enterprise Digital Services, Enterprise Applications, and Engineering services segments. The company, which has a significant presence in India as a key delivery centre, has around 3,000 employees, spread across five continents. In a conversation with Debasis Mohapatra of the Data Biz Times, Techwave’s CEO & Cofounder, Raj Gummadapu said that the company has seen growing adoption of its offerings among clients despite a tepid demand environment in the US. He said that there lies a significant upside potential in the SAP services as nearly 65%+ of existing SAP customers have yet to initiate their S4 journey. He also said that telecom and utilities players are investing in infrastructure modernisation, indicating the growth potential in coming years.
Can you please provide a brief overview of Techwave’s operations?
Techwave is a global digital transformation partner offering a wide range of services across IT, engineering, and enterprise business solutions. With over 3,000 employees on 5 continents, we focus on delivering comprehensive solutions that enable our clients to achieve their business objectives as part of their digital journey. Since our founding in 2004, we have evolved to a global services integrator with delivery capabilities in North America, Eastern Europe, India and Australia. Techwave prides itself on its CMMI level 5 certification, emphasizing quality in enterprise applications and digital transformation.
How do you see the current demand environment in the technology industry globally? Has Techwave’s growth been impacted due to subdued demand environment in the US in recent years?
Globally, while the tech sector has seen fluctuations in demand, especially in the US due to economic factors, I believe the broader digitalization push across industries has mitigated its impact. Techwave has maintained a steady growth by focusing on global markets including Europe, APAC, and Australian regions, where demand for digital transformation remains strong. While many US-based enterprises are being cautious, many are enthusiastically investing in automation, cloud, and enterprise solutions to become more resilient, which has continued to fuel demand for our services.
Which is the biggest vertical of Techwave in revenue terms? How do you see growth prospects in your largest vertical?
Our revenue is balanced across our portfolio of services which mitigates downward risk to revenue. Overall, digital services continue to remain strong in demand but sales cycles have become extended. We see significant upside potential in the SAP services as nearly 65%+ of existing SAP customers have yet to initiate their S4 journey. Demand for engineering services in Telecom and Utilities continues to fluctuate based on capital available but we see continued as telecom and utility operators are investing in modernizing their infrastructure operations to be resilient in increasing digital demands in these respective industries.
Engineering services have been a growth story in recent years. Have you benefited from a sound-demand environment?
Yes, engineering services have indeed been a pivotal area of growth for Techwave. The surge in demand for digital infrastructure, particularly in telecommunications, utilities, and manufacturing, has enabled us to leverage our engineering expertise to deliver end-end engineering services for our clients. Our ability to provide cutting-edge solutions in fiber-optic deployments and smart city projects positions us well to capitalize on the ongoing digital revolution.
What kind of solutions/platforms of Techwave are in high demand?
We continue to see high demand in engineering services and as we look forward to 2025, we anticipate significant growth in SAP services as companies initiate their S4 journey.
Spending on digital services has been down for the last two years. How has your growth story been in the Enterprises Digital Services space?
Despite the overall reduction in digital service spending, Techwave has seen consistent growth in the Digital Business Transformation space. This is largely due to our focus on mission-critical services, including cloud migration, data security and AI, which remain top priorities for many businesses. Moreover, as organizations increasingly recognize the importance of digital transformation for future resilience, we’ve experienced an uptick in projects related to data governance, data migration, and automation.
How are you leveraging Generative AI to offer new solutions to your clients? Will GenAI be a disruptor for you or a revenue enhancer?
Generative AI has been a significant revenue enhancer for Techwave. We are actively integrating GenAI into our solutions to automate content creation, enhance customer experiences, and improve predictive analytics. By incorporating AI-driven insights into our cloud and data platforms, we have been offering our clients innovative tools that enhance personalization and efficiency in their operations. As demand for AI continues to rise, we see this as a powerful growth area.
Do you see the growth revival in the US towards the end of this year? Are you pinning your hopes on the US Fed’s interest rate cut moves?
We are cautiously optimistic about potential interest rate cuts by the Federal Reserve, but more importantly, we are focused on delivering value through automation and digital solutions, which continue to drive growth irrespective of short-term economic conditions. Despite the inflationary challenges we have experienced these last several years, investment in technology and engineering services has remained relatively strong. While positive, we do not anticipate that potential rate cuts will have material impact to the demand of services that we offer to our clients.
How important is India as a delivery centre? Are you planning to hire more people in the current fiscal (FY25) and beyond?
India remains a critical delivery centre for the delivery of services to our clients. However, we have the capability to deliver from across the globe with regional deliver centres spread across North America, Europe, and Australia. While we will continue to expand our delivery capability in India, we will also expand in other regions as we focus on our close-to-customer strategy.
Any other insights, you want to share?
One of Techwave’s key differentiators is our client-centric approach. We’re constantly investing in research and innovations to stay ahead of the curve and bring the latest technological solutions to our client’s ever-evolving business challenges. As we continue to grow, sustainability and inclusivity are core to our mission, ensuring that we not only drive digital innovation but also create a positive impact on society and the environment.
