Krishna, who is betting big on IBM’s hybrid cloud business after he announced carving of the services and infrastructure business separately, will personally drive the partnership that entails IBM collaborating with Tech Mahindra to set up centres of excellence in the latter’s campuses, first in Bengaluru and expand into other cities, and build use cases that they can take to customers globally.
Tech Mahindra expects 40% of the joint work to be on 5G, a domain it is strong as half of its business comes from telecom customers such as AT&T and BT Plc.
“It’s a win for the client, because they get access to more technology and more capability and more expertise. It’s a win for the partner because their business expands. And it’s a win for us because our business expands,” Krishna told a virtual conference. “If you’re getting a billion dollars of revenue (each), look at our profit margins, even at a 20% margin, that means you’re spending 80% of that each year on employees”.
Indian IT firms are partnering cloud providers such as Google, Amazon Web Services, Microsoft and IBM, to help shift client applications to the cloud. This also helps clients shift their IT expenses to an operational model, and be more flexible to deal with shifts such as remote working that has been accelerated due to the pandemic. The shift to cloud also enables IT firms to use tools such as Artificial Intelligence and analytics to improve their clients business.
“We will be adding a lot of value to each other as we build almost a billion-dollar ecosystem for each other. We are building this on the success of the customers by solving some of their critical challenges,” said C P Gurnani, CEO of Tech Mahindra.
Both executives said that the pandemic accelerated the adoption of technology by companies, individuals and countries and is set to continue as technology enables improvement in the quality of life in people.
“My belief is that the future of technology, the future of businesses, the future of governments have now got a lot more intertwined. And that is where I think you would see a bigger thirst from companies like us because we believe it is no longer IBM’s old rally cry smart plan and it has now become a smart home, smart individual and smart city,” Gurnani said.
Krishna said that technology can be a great equalizer to bridge social inequality.
“By providing great access to markets to people where otherwise such access may be almost impossible to get. And it keeps you up because you have to solve glaring inequality in access at a global level in order to further progress GDP and the standard of living,” he said