MUMBAI: Tech Mahindra expects its digital unit to contribute more than $500 million to revenue by 2015, as the company moves towards its goal of achieving a $5 billion top line by that time.
The markfor digital offerings is growing for IT service players as companies look to tap social media, mobility solutions, analytics and cloud-based deployment - grouped under the acronym SMAC - to gain insights and tailor services based on customer requirements.
Tech Mahindra's digital unit includes also technologies related to network, security and sensors that comprise the Internet of Things, an idea of connecting almost everything online. The company uses the acronym NMACS for these technologies. "When we put together the Vision 2015 project, we had a target for how much NMACS would contribute. There are monthly, yearly targets. I would say we would end up slightly ahead of our target," Rishi Bhatnagar, global head of Tech Mahindra's Digital Enterprise Services unit, told ET in an interview. He declined to divulge the unit's current revenue.
The company, which has targeted growing revenue to $5 billion by 2015, expects 10% of that coming from the NMACSfocused unit. Tech Mahindra reported revenue of just over $3 billion for fiscal year ending on March 31, 2014.
The unit employs 2,500 people trained in digital specialisation and has a consultantled approach. It has about 200 consultants who work with clients to chart out their digital strategy, Bhatnagar said.
Larger rivals like TCS, Wipro, Infosys and Accenture are working on expanding their share of the digital market. Accenture's digital unit has about 22,000 employees, while Wipro has assigned 12,000 employees to its digitalfocused subsidiary. TCS has said it expects its digital unit to be worth "a few billion dollars over the next few years".
While deal sizes in the space are small, Bhatnagar expects them to get larger as the market matures and pilot programmes become full blown deals.
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