Tech Mahindra, the country’s fifth-largest software services firm, will focus on building platforms and developing its intellectual property to gain an advantage over its competitors. According to the senior leaders of the corporation, this will be accomplished through a combination of internal development and acquisitions.
Tech Mahindra acquired CTC and two insurtech platforms in January, bolstering its position as a provider of digital engineering services to insurance companies.
Tech Mahindra’s CEO, CP Gurnani, said the company was now taking a more systematic and analytical approach to acquisitions, emphasizing adding either engineering or domain capability.
“We will do it more to build our engineering capabilities. Or we will acquire businesses where we are now going to do a double click on some of the verticals,” Gurnani said.
“These give us stickiness and a competitive advantage that’s integral, and that’s how we see the industry evolving,” said Vivek Agarwal, president – banking, financial services, insurance and HLS, and corporate development. He explained that this was a combination of technology-enabled platforms and new business models. And the firm will continue to make significant investments in this arena.
“As we look at our strategy going forward, it is going to be a combination of creating platforms internally, as well as making selective acquisitions,” said Agarwal.
According to Emkay Global Financial Services, the CTC acquisition would strengthen TechM’s digital transformation capabilities and expand its offerings to high-end digital engineering services for some of the world’s leading insurance, reinsurance, and financial services companies.
The company’s primary goal is to acquire smaller businesses with unique capabilities to grow up. According to Agarwal, revenue size is an important metric that the organization considers.
