• Home
  • Opinion
  • Politics
  • World
  • Business
  • Science & Tech
Wednesday, May 18, 2022
No Result
View All Result
SUBSCRIBE
The Outlooker
27 °c
Delhi
  • Home
  • Opinion
  • Politics
  • World
  • Business
  • Science & Tech
  • Home
  • Opinion
  • Politics
  • World
  • Business
  • Science & Tech
No Result
View All Result
The Outlooker
No Result
View All Result
  • National
  • Politics
  • Opinion
  • Business
  • Science
  • World
  • Health
Home Business

‘Buy’ TechM as outlook for biz is healthy post Covid

by The Outlooker Web Desk
December 16, 2020
in Business
0
‘Buy’ TechM as outlook for biz is healthy post Covid
1.8k
SHARES
12.9k
VIEWS
Share on FacebookShare on Twitter

The company augments senior delivery with hiring of industry veterans who bring in strong domain knowledge and experience.

We interacted with Alok Palsikar, TM’s head of engineering services in a freewheeling discussion, here are the key highlights. TM has strong expertise in automotive and aerospace verticals. Outlook for the business is healthy post Covid and led by adoption of new technologies across verticals. TM is taking steps to increase participation in the fast-growing digital engineering space. 5G opportunity, uptick in enterprise growth and margin expansion underpin our positive view. ‘Buy’.

Tech Mahindra’s (TM) engineering services business contributes ~US$700m of revenues accounting for ~13-14% of overall revenues. Automotive is the largest vertical followed by aerospace. The company has strong capabilities in both the verticals. In automotive, the company delivers end-to-end design (from conceptualisation to drafting) capabilities besides body engineering, powertrain, infotainment systems, ADAS and safety systems to name a few. In aerospace, TM has marquee clients such as Airbus and works in areas of cabin engineering, aero structures, avionics and component design.

The company is also strong in telecom with capabilities in device engineering, testing and next generation network. TM has a presence in other areas of manufacturing, rail transportation and medical devices. Service capabilities are comprehensive and include mechanical, embedded, chip design, digital and device engineering.

Engineering services is organised as a strategic business unit (SBU) within TechM. The unit has 14-15k engineers with majority having over five years of experience. Onsite accounts for 20- 25% of effort with the rest executed at offshore/nearshore locations. The company has onsite presence in Europe, North America, Latin America and China. Delivery is led by senior architects with 20-25 years of experience.

The company augments senior delivery with hiring of industry veterans who bring in strong domain knowledge and experience. The sales process is managed through account managers of TM and supported by solutions experts of the engineering team. Learning and development is a focus area for TM.

The company indicated that freshers in engineering services need longer periods of training compared to IT services due to complexity in domain and tools/equipment. The company provides training in new simulation software and new technologies such as IoT, and cross training in cloud engineering, hardware design and software design to develop talent catering to new industry requirements.

TM indicated that growth in engineering services business was impacted over the past few years due to factors such as muted demand in automotive, slowdown of projects in aerospace and delay in 5G rollout. There are several growth opportunities in the next three years.

For instance the shift towards electric vehicles, connected and autonomous cars provides new opportunities in automotive. Health and medical devices is another vertical with strong growth opportunities. The company noted that except aerospace most other verticals are recovering well in the aftermath of Covid impact.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

The Outlooker is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

The Outlooker Web Desk

The Outlooker Web Desk

Next Post
ISRO To Launch Communication Satellite CMS-01 Today

ISRO To Launch Communication Satellite CMS-01 Today

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Kotak Alternate Assets to raise up to Rs 2,000 cr from private credit fund
Business

Kotak Alternate Assets to raise up to Rs 2,000 cr from private credit fund

May 18, 2022
Supreme Court allows OBC quota in MP local body polls, directs poll notification in a week
Politics

Supreme Court allows OBC quota in MP local body polls, directs poll notification in a week

May 18, 2022
Rajasthan Congress to resume public hearing sessions from May 23
Politics

Rajasthan Congress to resume public hearing sessions from May 23

May 18, 2022
Punjab Chief Minister Bhagwant Mann To Meet Protesting Farmer Leaders
National

Punjab Chief Minister Bhagwant Mann To Meet Protesting Farmer Leaders

May 18, 2022

Connect with us

No Result
View All Result

Archives

  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020

Category

  • Artistic
  • Business
  • Crypto
  • Design
  • Entertainment
  • Fashion
  • featured
  • Food
  • Gaming
  • Health
  • Human
  • Lifestyle
  • Movie
  • Music
  • National
  • Opinion
  • Politics
  • Science
  • Spaces
  • Sports
  • Tech
  • Travel
  • Uncategorized
  • World

Recent Posts

  • Kotak Alternate Assets to raise up to Rs 2,000 cr from private credit fund
  • Supreme Court allows OBC quota in MP local body polls, directs poll notification in a week
  • Rajasthan Congress to resume public hearing sessions from May 23

About Us

The Outlooker

The Outlooker is your source of authentic, hand-picked news, stories, analysis from India & the World.

  • Terms Of Service
  • Privacy Policy
  • About us
  • Submit your story
  • Contact

© 2019-2021 The Outlooker. All rights reserved.

No Result
View All Result
  • Home
  • Politics
  • World
  • Business
  • Science
  • National
  • Entertainment
  • Gaming
  • Movie
  • Music
  • Sports
  • Fashion
  • Lifestyle
  • Travel
  • Tech
  • Health
  • Food

© 2019-2021 The Outlooker. All rights reserved.