Dubai: Tech Mahindra, India’s fifth largest software services company, recorded more than 20 per cent year-on-year increase in first-quarter (April-June) revenues from the Middle East, a top company official told Gulf News.

“The first-quarter results are pretty encouraging as we were able to close large deals in the region. We are seeing a momentum picking up in industries like airways, airports, oil & gas and public sectors,” said G.B. Kumar, Vice-President and Geo Head — Middle East, Africa and Turkey at Tech Mahindra.

“We have signed up multiple contracts where we are seeing customers asking for resources to be staffed up to build their own their own IT pool of resources. So, we are supporting customers to be successful and that is one of the main trend we are observing in the Middle East IT market,” he said.

He said that Tech Mahindra with telecom as a horizontal differentiator augurs well with the customers in this potentially disruptive landscape.

“We are invited to larger opportunities more and more from the region,” Kumar said.

The group is expecting a 20 per cent growth in second-quarter revenues with the signing of a joint venture deal with Midad Holding, a subsidiary of Al Fozan in Saudi Arabia, and an agreement that was signed with Dubai Economic Council (DEC) for providing IT solutions to help achieve the ‘Smart City’ status and for Expo 2020 initiatives.

Kumar said that Saudi Arabia is a huge and the biggest market in the Middle East but our share of the market is very small. With this joint venture, “we are hopeful to gain traction in the kingdom and win some big projects in the oil & gas, utility and banking segments.”

 

Open to opportunities

On whether similar joint ventures will be signed in the other parts of the region, he said that Tech Mahindra is open to opportunities.

“We are also looking towards expanding our presence in the region and establish the company as a leading player in providing IT and ITeS solutions, not only for the purpose of revenue and profits but to also offer career opportunities for the talented men and women in the Middle East,” he said.

“Our differentiating strengths in networking, mobility, analytics, cloud and security will be of key importance in bringing value to Saudi customers,” he added.

For the quarter ended June 30, global revenues rose 18.1 per cent year on year to $855 million while the company’s consolidated profit after tax rose 4.3 per cent sequentially to $105 million.