Major Indian software company Mahindra Satyam is set to offer its engineering services to customers in the Middle East for the first time.
“Middle East and North Africa are clearly the emerging markets that are crucial for our growth,” quoted Krishna Gopal, Vice President, MENA Sales for the IT outsourcing company Tech Mahindra.
Analysts believe the ICT industry of the region does provide a goldmine of opportunity for industrious capitalists such as Tech Mahindra, a fact proven when the company revealed its penetration levels within the GCC markets now exceed 100%.
The network and software solutions provider further posted a 15.4% surge in its annual growth, while also declaring global revenues of about $298.8 million for the first quarter of this fiscal year, which marks a 4.1% rise in its quarter-to-quarter growth.
Tech Mahindra?s announcement of its illustrious fiscal performance comes as a prominent indicator of the enormous potential of the technological industry within the MENA region, even as it lies vastly unexplored.
A 2009 forecast by the Dubai Chamber of Commerce projected the ICT sector within the UAE to expand to as much as $4.7 billion by 2013, a growth of nearly 50% from then market value of $3.2 billion.
The figure illustrated the immense potential of the UAE, a rapidly developing economy in the Middle East region, and fast becoming a hotbed for technological progress. This striking opportunity has quickly garnered keen interest among capitalists far and wide, further prompting the UAE government to announce an investment of Dhs. 80 million within the sector last month to spur its growth and development.
However, quickest to rise to the occasion were the keen opportunity-seeking entrepreneurs of the nearby subcontinent, particularly those from India whose rapid economic expansion is largely based on the development of its IT sector, of which Tech Mahindra is a core part.
The outstanding potential of the industry within the GCC is a result of drastically surging demand for modern ICT services, especially as economic activity continually expands and the need to remain competitive presses harder for a stronger IT infrastructure in the region.
Tech-Mahindra, formerly known as Satyam and a subsidiary of the Mahindra group of industries, is an example of a crop of companies that are in a hot pursuit to exploit the wide gap and establish themselves firmly within the emerging industry.
The company has been gradually expanding the range of services it has to offer and the scope of its operations in the MENA region in order to establish itself as a one-stop solution for IT services for businesses, while ensuring its services and products remain cost-effective to its increasingly cost-conscious customers.
“We continue to build our business portfolio at a measured pace, despite low discretionary spending in the telecom vertical. This has been enabled by our diversification into new geographies and customers,” said Anand Mahindra, Chairman of Tech-Mahindra.
Recent strategic moves by the company include innovative developments in its e-security and the Business Process Outsourcing (BPO) services – the most promising submarkets within the sector, besides the inauguration of its Nigerian office that shall serve as its headquarters in the African continent.
The company?s innovation-driven vision, marked by the recent opening of its new state-of-the-art Mobile Innovation Lab in Bellevue, was further facilitated by its strategic acquisition of the Satyam Computer Services in 2009. The acquired company, now known as ?Mahindra Satyam? was India?s fourth-largest outsourcer by revenue before a scathing scandal caused the company to be put up for sale.
Sources: Emirates24/7,? AME info