Mastech Digital expects faster growth from digital transformation business

Firm plans to expand office space in Chennai, as part of its endeavour to achieve larger goals for future

Mastech Digital Inc, the information technology (IT) staffing and digital transformation company which was spun out of iGate in 2008, is expecting its digital transformation services business to grow faster than its staffing business in future.

The company, which has acquired the Canada-based data management and analytics company InfoTrellis Inc, is looking at expanding its office in Chennai, as part of its efforts to achieve larger goals, said a senior management official.

"We want to be recognised as a digital transformation services company that offers projects and staffing services over a period of time," said Vivek Gupta, president and CEO of Mastech Digital.

He added that the acquisition of InfoTrellis, where operations were stalled earlier this year, has increased the margins of the company and a greater focus on digital transformation, data management and analytics will provide the firm better margins in the near future.

At present, the company has around 1,500 employees, a majority of whom are based in the United States (US). In Chennai, where it has a staff strength of 150 under its Mastech InfoTrellis business, there are plans to look for a larger office space to accommodate over 200 employees in future. 

Currently, its IT staffing business has around 200 employees based in Noida and around 30-40 workers in Canada. The remaining chunk of its workforce is in the US.

Gupta’s takeover of company’s management around one-and-a-half years back marked the dawn of Mastech Digital’s renewed focus on its digital segment. During the initial few months, the firm spent considerable time in focusing on addressing some of the existing issues in their ongoing business. Later, the focus was shifted to its digital business, leading to an increase in its digital-led revenues from 18 per cent to 35 per cent of the overall revenues.

Gupta further expects revenue earnings to go up to 40 per cent in the immediate future. The company has also seen improvement in its EBITDA earnings, besides witnessing an increase in its shareholder value, he added.

Globally, the big data and analytics market stands at around $130 billion at present and is growing at an annual rate of 12 per cent, leading to expectations of surpassing the $200-billion mark by 2020.