Tech Mahindra eyes up to 60% revenue from US in the next four years

US is going to see a muted growth, not recession in 2023-24: Tech Mahindra

Information technology (IT) services firm Tech Mahindra on Friday said that the firm expects to increase US’ share in its total revenue to 60 per cent in the next four years, from around 47.9 per cent currently.

The firm added it is in the process of hiring more people, and that the US is going to see a 'muted growth and not recession' in 2023-24.

Lakshmanan Chidambaram, President (Americas), told Business Standard the company also expects its revenue to grow by 8.8-9 per cent during the current financial year, driven by a rise in total contract value.  “Our prediction is that there will not be a recession. The growth will be muted, but there will not be a recession. In the event of a recession, I think the Fed will continue to keep the interest rates up, and once inflation is under control, things will start loosening up,” Chidambaram said.  

He added that the share of Americas in the total revenue of the company is set to go up in the coming years. “Our outlook is that the Americas business should go to around 60 per cent. This will be a multi-year process, probably in the next four years,” he added.  

Revenue from the US was 47.9 per cent in last fiscal (FY22), compared to 47.5 per cent in FY21. Revenue attributable to Europe was 26.2 per cent during the same period, compared to 26 per cent in the previous year. Revenue from rest of the world (including India) as a percentage of total revenue was 25.8 per cent during the period, down from 26.6 per cent in 2020-21. Its revenue increased to Rs 34,726 crore during the previous financial year.

Chidambaram said that while big companies are going for job cuts, Tech Mahindra will be hiring more people in 2023-24. It was facing a higher attrition rate last year. “Overall sentiment in terms of talent acquisition had gone crazy a year and a half ago. Things have come down on the attrition front. We will be hiring more as our business is growing,” Chidambaram added.