Tech Mahindra aims to significantly expand its presence in the Banking, Financial Services, and Insurance (BFSI) sector, a strategic move spearheaded by CEO Mohit Joshi. As of 2024, BFSI contributes approximately 16% to the company’s revenue mix. Joshi’s goal is to raise this share to 25% by March 2027, aligning Tech Mahindra with its peers in the Indian IT sector.
Focus on BFSI to drive growth
Mohit Joshi, who joined Tech Mahindra in December 2023 after a two-decade tenure at Infosys, is leveraging his expertise in financial services to steer this transformation. Unlike its competitors, Tech Mahindra has historically relied on telecom clients for revenue growth. With BFSI emerging as the single largest spender in tech services, Joshi is prioritizing core banking, payments, asset management, and insurance to capture a larger market share.
“We still have a lot of room to catch up,” said Joshi. “Large banks typically spend over $10 billion annually on technology, and it’s essential for us to play aggressively in this space.”
Generative AI: A catalyst, not a threat
Another pillar of Tech Mahindra’s strategy is its adoption of generative artificial intelligence (GenAI). Joshi views GenAI as a transformative tool rather than a threat, emphasizing its role in accelerating tech spending across industries.
“GenAI is the best spokesperson for why we need more investment in technology,” Joshi explained, dismissing fears of reduced demand for software developers. Instead, he foresees increased opportunities as businesses adopt advanced AI tools.
He also downplayed concerns about GenAI replacing human-driven customer service roles, noting, “When it comes to critical issues, people still prefer speaking to human beings.”
Scaling leadership and market presence
To achieve these ambitious goals, Tech Mahindra has bolstered its BFSI leadership team and is focusing on delivering specialized services in areas like wealth management and custodian services. By 2027, the company aims to stand as a strong competitor in the lucrative BFSI segment, solidifying its position in India’s $254 billion IT industry.
As Tech Mahindra aims to bridge the gap with its peers, its focus on BFSI and GenAI reflects a forward-thinking approach to staying competitive in the evolving tech landscape.
