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    Home » Testing News » TECHM EARMARKS $150 MILLION FOR CONNECTED IT SOLUTIONS

    TECHM EARMARKS $150 MILLION FOR CONNECTED IT SOLUTIONS

    A D V E R T I S E M E N T


    Tech Mahindra plans to invest $150 million (Rs 933 crore) over the next three to four years in creating innovative solutions, both in-house and with other partners, as well as to fund acquisitions, as the company focuses on developing next-generation technologies.

    The IT business of the agri business-to-automobiles Mahindra Group has recently formed a unit, Global Strategy & Growth Factories, under former mobility services head Jagdish Mitra to push newer technologies and engagement with startups. A major chunk of the investment will be used to fund this unit.

    With a committed investment of $150 million, TechM will accelerate its transition to create "an explosion of connected IT solutions" in the next few years, chief executive CP Gurnani said. It is also aiming to promote enabling technologies or "innovation accelerators," each bolstered with an opportunity for "a VC-like funding," he said.

    The move comes at a time when TechM, like bigger rivals TCS, Infosys and Wipro, is actively promoting new ideas and technologies as it targets annual revenue of $5 billion � it had posted revenue in excess of $3 billion in fiscal 2013-14. The company has struck at least three deals, including two acquisitions and a joint venture, in the recent past. One of its new focus areas is Internet of Things � the idea of connecting almost everything online.

    TechM is also making other changes. Its mobility business will now be merged with Mahindra Comviva, headed by Manoranjan Mohapatra. In an other change, TechM's device testing business will be combined with the Integrated Engineering Services group, headed by Karthikeyan Natarajan. According to Gurnani, areas to watch out for are gamification, cognitive computing, artificial intelligence and self-healing platforms among others. Gamification applies game mechanics and design techniques to push people to achieve their goals, while cognitive computing is used for addressing situations that are characterized by ambiguity and uncertainty.

    Operations of the Growth Factories unit will be centered on identifying and developing direct-to-consumer business, digital solutions and platform-based offerings. "Everything will be digital in the coming years, Tech Mahindra is well placed to deliver in this environment and has already applied for payment bank licence," said Mitra. He said the new unit will incubate technologies of the future like gesture-based technology solutions and solutions bundled with devices.

    One of the consumer-focused products it is developing is a wrist band bundled with a safety solution for women. TechM is currently running a pilot project on the product, it but refused to divulge details.

    The company is closely watching talent and technologies in the Silicon Valley as well the rest of North America and Israel. Even within, TechM is pushing for people to come up with innovative solutions through its 'intrapreneur' programme. Under this, it helps incubate innovative concepts of employees into solutions that are tested and made commercially viable. Mitra will manage its startup fund.



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