Less manpower is goal, says Tech Mahindra's Vineet Nayyar

Interview with the vice-chairman of TechM

Information technology firm Tech Mahindra’s vice-chairman, Vineet Nayyar, tells Romita Majumdar how his firm is planning to increase productivity. Edited Excerpts:

What are the cost-optimisation measures that have helped you improve margins?

We look at the number of people, productivity. We are looking at increasing productivity through a number of measures and relative reduction of manpower. Same quantum of work with less manpower is the goal. 

There has been a decline in software headcount by about 3,400. Is this a part of the same measure?

You can see that there is a greater turnover (revenue) with fewer people. We may still not be close (to optimum productivity) though. At the moment, the objective is to see more automation taking place, not requiring human intervention at every level and that is the way technology is shaping up.

Can political volatility in US surrounding health care have a major impact on the IT sector here, given that the IT sector here has major stakes there?

Frankly, I don't see that. We really don't know what will happen. Obamacare was (earlier) there and (continues) to be there. The question is how it will be funded finally. The US is a developed society; you can't just let them abandon health care.

What kind of impact has the communication, specifically telecommunications, been witnessing across the globe, especially with increasing business in Africa?

Communication across the world has undergone a major change. I would not go by the old definition of communication and it is required in every sector. 

Your peers have seen an overall growth in European business. What is your outlook for the same?

Broadly speaking, Brexit apart, most economies in Europe are doing better than expected. It is clearly a positive growth. Decision-making and revenue growth in that region have moved the fastest over the past three years. There will always be some quarters where revenue may or may not grow. The revenue mix from there is among the largest but we always remain very bullish about growth prospects there.