India's fifth largest software exporter recently reported a 7.4 percent increase in its fiscal third quarter ended 31 December 2011. Tech Mahindra attributed the year-on-year increase to continuous wins and partnerships from across the globe, even from financially-challenged Europe.
Tech Mahindra posted revenues of US$289 million in the quarter and operating profit of US$46 million, an increase of 2.3 percent quarter-on-quarter.
Vineet Nayyar, vice chairman, MD and CEO, Tech Mahindra, said the company's investments in growth markets and in emerging technologies have paid off, and they will continue their focus despite the "uncertain economic environment".
And in that "uncertain economic environment" called Europe, Tech Mahindra continues to do business. Tech Mahindra said an unnamed telecom service provider has signed up with them for a multi-year contract for the implementation of business intelligence services and managed services.
Tech Mahindra also scored a deal with an unnamed multi-service cable operator from the Benelux region. The company said it would develop new systems for the new customer, and integrate and manage their services.
For the third quarter, Europe was the top revenue earner, with a 54 percent share, followed by North America at 32 percent.
Tech Mahindra said it also scored deals in the Americas - with a "major" media company in Latin America and a Tier 1 telecom operator in North America. For the media company, Tech Mahindra will provide maintenance and support to the client's legacy applications in telecom billing, telecoms being one of the strong markets on Tech Mahindra. For the North American client, Tech Mahindra will provide network support for wi-fi services, and will provide managed public and private networking services for the wi-fi network and the customers of the telecom operator.
But Tech Mahindra is also doing good business closer to home. In India, Tech Mahindra forged partnerships to expand its market. With Sitronics India, Tech Mahindra will jointly promote OSS/BSS-solutions, and with CanvasM and Polaris Wireless, Tech Mahindra will focus on the network and wireless networks solutions.
Meanwhile, security solutions provider Kaspersky Lab has signed up with both Tech Mahindra and Mahindra Satyam to jointly promote and develop mobile and cloud security solutions.
Another Asian partner is TATA DOCOMO with which Tech Mahindra will offer mobile VAS solution from CanvasM.
Ajit Velankar, vice president, Southeast Asia and North Asia, said the Asia Pacific region business performed as expected, highlighted by two significant wins with key telcos in the Philippines and China.
"Our focus on large managed services across IT and the network last quarter in the region has paid rich dividends. Specifically within North Asia, our focus on strong partnerships with Equipment Vendors is yielding good growth. In the coming quarter, we will continue to see solid engagement with telecom service providers as well as network vendors. We will continue to make further investments into the region as we see significant growth opportunities coming in the telecom sector," said Velankar.
The AP region is included in Tech Mahindra's market referred to as "rest of the world", which contributed 14 percent to overall revenues gained in the third quarter.
Sign up for MIS Asia eNewsletters.