Tech Mahindra's BFSI Strategy

By Haripriya Suresh
BENGALURU (Reuters)

India's Tech Mahindra (NS:TEML) is expanding its focus on the banking, financial services, and insurance (BFSI) sector. Its CEO, Mohit Joshi, aims to increase the BFSI revenue share from about 16% to 25% by March 2027.

Joshi, who assumed leadership of the company in December 2023 following a long tenure at Infosys (NS:INFY), recognized the need to catch up with larger peers that generate up to a third of their revenue from BFSI.

"We still have a lot of room to catch up," Joshi remarked, emphasizing that the increase will occur organically. Historically, Tech Mahindra has leaned on telecom clients for revenue but plans to utilize Joshi's banking experience to shift the focus.

"BFSI is the single largest spender from a tech services perspective. It's crucial for us to engage aggressively in this space. Large banks typically spend over $10 billion a year on technology," Joshi noted. The company intends to prioritize core banking, payments, asset management, wealth management, custodian services, and insurance.

Generative AI in BFSI

Joshi views generative artificial intelligence as beneficial for the industry, suggesting that it highlights the necessity for increased technology spending. He believes the demand for developers will remain strong, citing the growing amount of work needed.

He expressed doubts about the complete replacement of customer service roles with generative AI, as customers often prefer to speak with humans for critical issues.