Headcount downsizes attributed largely due to increased automation

There has been an acceleration in the adoption of new technology and many clients are migrating to the Cloud,” said CP Gurnani, chief executive of Tech Mahindra. The technology modernization cycle continues to gather pace and our positioning of creating experiences through Nxt.

There are new deal worth $455 million during the quarter, not including renewals, which are back to pre-Covid-19 levels. Tech Mahindra’s total headcount at the end of the quarter was 121,901, down by 2,357 over the previous quarter, attributed largely due to increased automation in the business process management business.

There is also huge demand for human experience management solutions through Born group, a digital transformation firm it had acquired in 2019. The company has proposed a merger of Born Commerce and Tech Mahindra Business Services, both wholly owned subsidiaries.

The deal funnel is at an all-time high and the coming quarters are expected to show robust growth with increased adoption of Cloud and artificial intelligence-based solutions. With this Margin also have improved, largely on account of increased offshoring due to the work from anywhere model, which resulted in a fundamental change in delivery and operating models along with a higher utilisation rate of 87%.

Going forward, the company has identified 190 key skills for which it will look to hire experts as well as upskill employees. Tech Mahindra will also start a staggered rollout of salary increases from March, Gurnani said.