IT firm Tech Mahindra expects its revenues from the Rest of the World (RoW) region to grow over 22 per cent this fiscal on the back of strong demand for outsourcing services across countries like Malaysia, China, Indonesia and Japan.
The country’s fifth largest software services firm saw 24 per cent of its total revenues of Rs. 5,058.1 crore coming from the RoW region in the fourth quarter ended March 2014.
“We are sharply focussed on this region. It has been growing significantly for us and its contribution to overall revenues has also been growing,” said Rohit Gandhi, Head Asia Pacific, India, Middle East and Africa (Enterprise), Tech Mahindra.
At the beginning of the fiscal, the region accounted for 22 per cent and in Q4, it has grown to 24 per cent, he added.
Americas accounted for 45 per cent of the revenues, while the remaining 31 per cent of the revenues during the quarter came from Europe.
“In the last two years, we have changed our strategy. We are now concentrating more on niche areas like engineering and have formed local partnerships to go deeper into the markets. Malaysia, Indonesia, China, Japan and African countries are some of the fastest growing markets for us,” he said.
Other countries which are strong revenue contributors include India, Australia and Singapore, which are also showing good growth rates, he added.
“These markets are growing fast. Overall, growth was about 21-22 per cent last quarter and we expect to grow higher than that this year,” Gandhi said.
The company is also bullish on newer geographies like South Korea, Saudi Arabia and other Middle East countries, where the Mahindra Group firm has recently forayed into.
“South Korea is a new market for us and areas like telecom, engineering services and manufacturing hold a lot of potential. Similarly, we are ramping up operations in Malaysia, China and Africa; and hiring locals to strengthen our presence,” he said.