Anindita Nayak
Bhubaneswar, 28 June 2024
Tech Mahindra Chairman, Anand Mahindra said the rise of artificial intelligence (AI) will significantly impact IT services and the mid-tier IT firm is poised to “leap into the new orbit.” Mahindra outlined the company’s three-year plan to revitalize its business amid the AI surge.
“As organisations strive to stay ahead in the digital race, IT services will play a pivotal role in enhancing that Golden Thread by integrating AI seamlessly into the core business functions. From extracting data-driven insights to solving industry-specific problems to revolutionising customer engagement, the synergy between IT and AI will enable a new era of technological prowess. It will require higher-order work. It will call for upskilling. Even without a crystal ball, I can venture to predict that Tech Mahindra, under its new leadership, is well-positioned to leap into this new orbit,” said Anand Mahindra in company’s annual report.
Mahindra stated that the company has adopted “speed at scale” as their promise and rallying cry. The three-year plan for achieving profitable growth, which addresses every aspect of the organization including structure, strategy, technology, client focus, skill development, talent management, and performance enhancement, has been communicated to investors.
“The future landscape is clearly mapped out, and actions are clearly communicated. Given Tech Mahindra’s past record, the enormous experience that the new leadership brings to the table, and this high degree of preparation, I am confident of efficient execution. I believe that the rumours that the advent of AI will be the death of IT services, are grossly exaggerated. AI will push these services towards a new frontier, into directions that were hitherto unimaginable – and Tech Mahindra will be in the vanguard,” Mahindra added further.
After taking over, CEO and MD Mohit Joshi has crafted a three-part plan to boost revenue and improve margin of the company by FY27. The strategy focuses on growth, operations, and organization. In the annual report, Joshi stated that FY25 will be a turnaround year for Tech Mahindra, with new investments in key accounts and service lines. FY26 will focus on continuing this progress and completing the integration of portfolio companies.
“We will drive the integration of our portfolio companies, focus on our largest clients, and prioritise cost optimisation. By FY27, we expect to reach an optimised state with an improved structural mix and a pyramid,” he said.
