A very warm and bright good morning to all of you. We last met in November 2021 when we were still in the hybrid mode. It's really, really nice to see such a large turnout today. Yeah, thank you so much for traveling from wherever you are, your offices, homes. Welcome once again. We truly appreciate your presence here. A big, big thank you to all of you who've joined us online as well. I'm told there's a huge gathering there as well. Thank you so much. Stay tuned, stay connected, because you've got a lot to hear from the Tech M leadership today. Before we begin, a few routine instructions. The agenda, I'm sure all of you have it. It's in your folders.
Please note we have a Q&A at the end of the session, so do hold on to your questions till then. All presentations, as always, will be uploaded on the investor site, so you may download them from there. We have an experience zone right outside. Some of you may have already visited it. If you haven't, do join us there during lunch. We've got some cool solutions and immersive technologies for you to experience. Yes, last but not the least, I would request all of you to take a couple of seconds to put your phones on silent. Yeah. The last 1,000 days have been a true test of human resilience and human kindness. We fought on one hand and cared for on the other. Today we believe it's time to go beyond.
Our theme this year is about rising beyond, and the Tech M leadership today will share with you how we are doing that for our customers and our customers' customers, making them more resilient, more relevant. Without further ado, let me invite our MD and CEO, CP Gurnani, for the opening remarks.
Thank you. I don't know. It's I've clicked it so many times, it has probably gone to the last slide. That's what you really wanted, right? Okay. Hi, good morning, everybody. Good morning.
You know, in a lot of ways, I'm gonna start by answering one of the questions that Yogesh had asked me yesterday night. It was almost like, you know, he wanted me to do Vicky Kaushal and answer his question: How is the josh? That was Yogesh in his euphoric style. Kamaljit in his usual reserved but very direct, "Where do you think economy is headed?" I knew that next question is, "Where is Tech Mahindra headed?" Kamaljit, I get all the messages, and I will only repeat what I said yesterday, that I never seen so much certainty about uncertainty. The mood changes almost every morning, depending on whether it is Marc Benioff laying off yesterday or whether it is somebody else, you know, declaring an investment somewhere.
You know, I've been in three conferences in the last two months. January end was in the World Economic Forum. Most of you read the newspapers that Europe was not negative. Most of you read the newspapers, and it said US fear of recession could be not so, you know, bad. Then I went into a conference in Saudi Arabia called LEAP. I mean, I've never been to a conference where a visitor was asked not to come in because the conference, the whole exhibition center was full. They sent verbal notices. There were 170,000 people in that conference, which is not the most popular conference in the world. 170,000 visitors and, I mean, again, trillions and billions of announcement. The third conference was, I mean, some of us, I mean, just barely made it.
If Manish Mangal is sleeping, I mean, please don't blame him. He hasn't slept for the past five days. Because that was at Mobile World Congress. Again, record turnout, record enthusiasm, people continuing to You know, come up with, you know, more industry future-ready solutions. I think in a lot of ways, the backdrop as I see it is there could be a, you know, some impact because ultimately, one day there is an organization which lays off, the second day the organization does not sign a large contract. In my opinion, this delay, and I'm gonna take feedback from all of you, that this could mean a delay, this could mean a pause button. Overall, our experience interacting with customers around the world is innovation, digital, and business transformation is still a very huge conversation.
More and more we engage, we realize that the corporates around the world will continue on that agenda. In this backdrop, as you all know that for us, rise means rise for an equal world, which includes diversity, which includes inclusiveness. Rise for us also means rise to be future-ready. As you see through the day, you would realize that Tech Mahindra has been becoming bolder about being future-ready every day. You would see that some of the bold bets that we are taking, whether it is product and platforms, or whether it is co-creation of, with the customers, it is all about being bolder and being future-ready. Think about it. All those acquisitions that we did, ultimately, they became part of the digital fabric that has served our customers.
I'm sure as the day unfolds, you will meet a few of those entrepreneurs who created those companies, and they're gonna talk about how they've integrated into the Tech Mahindra service offerings. Clearly, for us, the biggest strength of the company is 1,279 customers, 1,279 people that we engage with, and we help them rise beyond all this doom and gloom, all this from resilience to continuously being relevant to their customer base. That's what drives us. That's what engages 158,000 employees around 90 countries and around the world who are energized to continuously deliver value to our customers. Just a quick reflection. I think it's been a great year. I think the last few years have been good. I'm fully aware that in certain areas, there is a lot more to be done.
None of us is complacent here. When I look back, again, as I told you, it is not only 1,279 customers, it is not only 158,000 employees. We probably have one of the most stable, energetic leadership teams in the whole industry. We have one of the best culture when it comes to... Some of you should talk to people like Hasit Trivedi, who is the head of our AI practice, who joined us from another company. Dilip Keshu, who came from Mars, no, Moon. I don't know. Dilip came from somewhere, right? I mean, he calls himself BORN. Mark, who is from BORN.
I mean, please do talk to them because clearly the culture, the desire to do better, desire to openly talk about the fault lines, I think that's what makes me proud because all of us have built a beautiful company, and these results are just an indication. I mean, I know CTL and Jagdish will take you through more of this and about the enterprise business. That Q3 for us was $1 billion. Vivek will share with you during the day on how the acquisitions have brought in a strength for us to deliver $1 billion per quarter in enterprise. Similarly, you know, when I was with Manish Vyas and M&M, Manish and Mangal also.
Manish Vyas and Manish Mangal, we started talking to a few people at MWC, and they actually came in and complimented us that, "Guys, do you realize while 5G is still work in progress, you guys are delivering almost $1 billion per year from the 5G ecosystem or the 5G services that you have." Again, clearly, we continue to do well. In a way, shareholders are also being rewarded because beginning of the year, exactly a year ago, I had shared with you that we are going to take a pause on acquisitions, not because we didn't want to. We have not changed our strategy. It is just that in this uncertain market, the valuations would have been unrealistic, and there was no point in going and making that effort in that choppy market. We had also shared with you our capital allocation policy.
To demonstrate that, the board authorized me to declare INR 18 interim dividend. Company continues to be conscious of capital allocation, their acquisition policy, and very determined about improving our profitability and operations. On the growth side, we are doing reasonably well, and I'll share that with you in a minute. You know, this is a chart which I borrowed from one of you. I mean, clearly, they have come in and shared with me that we are not doing that great because we are number third in the growth matrix. You know, as I told you, the Tech Mahindra leadership team is determined. We are going strong. We had hit a few speed breakers. Most of you know the reason of the speed breakers. The Tech Mahindra was primarily in telecom.
In telecom, we ended up in 90 countries because our customers were in 90 countries. We didn't have that much of a base at that point of time. When you address the top 2 or top 3 telcos in each country, you're constantly working with an industry which has had its own challenges also. I'm, I think, I mean, over a period of time, we have changed the portfolio mix. We have been working very diligently. We have already brought the portfolio mix to 41% of telecom and the balance 60% approximately from enterprise business. More important is, I think what you would see is that the company continues to grow strong because to some extent they built in a resilience also.
The resilience that we built in is for our customers, that they will benefit when they want to do global expansion, because we are in 90 countries. They will benefit because that reach that we got through telecom into an Africa or a Latin America, some days I can tell you it, that currency fluctuations does bother me. It's not that, we are always that happy or gung ho about all these countries. We are obviously optimizing on that area also. We are also becoming. We are asking a lot more questions. Again, Rohit will share with you that while investments and growth is on the agenda, divestment is also on the agenda. Again, top three, happy that my technology team, I don't know whether where's the birthday boy. Nikhil Malhotra, is he here?
Anyway, the Head of Innovation, Nikhil, Haset, Rajesh Dudu, all these guys, I mean, they have made sure that we continue to focus on our technology. We have taken bets in the past, and I'm gonna share with you or rather the panel will share with you a lot more what has made Tech Mahindra so successful. Just a pause here. A pause is we spoke about what brought us to this point. The pause is now to say, what is it that we need to watch out? What is it that we need to know? How do we take into account the top industry trends? What is Tech Mahindra response to all of this? When we didn't ask ChatGPT, we asked this question to ourselves, what is the future of tech services?
It became very, very clear that one of the areas we could do better is on focusing a lot more on alliances and partnership. Our revenue, which is influenced by alliances and partners, is approximately 30%. Industry average is at 40%. When these five future trends came in, we immediately knew which area we need to focus in. it's no secret, I mean, 30%-40%, where is the delta gonna come from? Focusing on hyperscalers, focusing on cloud, focusing on cybersecurity. Again, I'm gonna encourage you to talk to Maninder, go and talk to Vineeth Rajagopal. Both these guys are here. They will share their experiences and how 30%-40% journey would take place.
On the business transformation, as you go through the experience zone and when you talk to Kunal, he would remind all of us, Kunal is officiating as the Chief Digital Officer of the company. I mean, he has had four designations, chief of one office, Chief Build Officer, Chief Solution Officer, that he is now. At the moment, he says, "All right. If there is a solution, you want me and I'll make it happen." Thank you, Kunal, for being part of the management team. The point here was very simple, that we looked at our business portfolio. A lot of our business was cost transformation. The portfolio started shifting towards digital transformation.
This is where, you know, people like Manish Vyas and Jagdish Mitra came in and said, "If the proposal does not have AI inside, if the proposal does not have..." Again, I'm telling you this is a pre-generative AI format, which is, I call it AI linear growth and now AI exponential growth. They had come up with this, that every proposal, every customer engagement, we will look at AI inside. We have our own platforms. We have developed platforms which are. We have also worked in partnership with others. The point was very simple. Digital transformation to us always had an element of data sciences, always had an element of cloud edge computing, always had an element of AI. The question was, how do you do business transformation? This is where I have to give credit to Dilip.
Dilip, actually a year and a half ago, we were talking to a very large prospect in Dallas. Dilip said, you know, just before the presentation was being made, he said, "Can I turn the whole presentation upside down? Can I convert this pitch not to the IT folks, and can I make this pitch to the CEO and CFO? Can we all look at the CEO, CFO insights and then start the presentation?" I said, "Little ballsy, little gutsy." I mean, we're talking to the CIO, and we are saying is we are going to do a CEO presentation. We are not going to talk technology. We are going to talk business to them.
The fact is, CTL who is leading that pursuit from our side would remember today it is going to be our top 10 clients or it will become top 10 clients for us globally because we discussed business transformation. That is what is now becoming a habit, where you start relating to the business benefits. When you start relating to how a business would be transformed. Similarly, Kunal was in front of a pitch in Nordics. A physical security company now changing their business mix, where the business is going to change from not only physical security, but to various other parts of the securities, which is perimeter as well as digital. That transformation, we are doing it with the client. I think, again, a lot of focus on these emerging trends, we try to self-score ourselves.
I think we are in a good shape. I'm constantly reminded by my own leadership that one of the areas that we probably need to do differently. Obviously, the need to do differently is more on operational metrics and yield management. What you're seeing, a slide, is more like an internal slide where focus is on execution, focus is on operations, focus is on productivity, focus is on efficiency. The reason we are doing it is very simple, that when we look at geo mix on one day, we are very proud. The other day we also say, "These geos, are they relevant?" When we look at sometimes some of our service offering mix, we start questioning, is it subscale? Is it relevant? Sometimes when we look at our own, you know, outreach programs, then we start questioning.
The basic point that I want to reassure each one of you is we are conscious of the vertical, we're conscious of subvertical. We have now got analytics at almost like the top 600 account level, where we know how do we make our customer successful and how do we make ourselves successful in that whole paradigm. The strategy-wise, whether it is people strategy or technology bets, I think we are doing reasonably good. Where we are going to put extraordinary focus is on productivity and efficiency. All four go together. There is nothing which says one part is exclusive. It has to be focused on people. It has to be focused on process, technology. We have put all of this together. We have a chief transformation officer.
Atit is here, and he has put all these four together, and we have definitive goals and a definitive direction. Next. Now. Why not yesterday? I know you've been hearing me for a little while, so I'm gonna now request a few others to come in and join me here. I mean, guys, I'm not trying to surprise all of you. Some of you are definitely being surprised. I'll tell you the reason I'm putting it is many of you have asked me this question last night. What is the future of BPS? Because we have a very strong BPS practice. Does this generative AI change the way BPS will execute? Some of you have asked this question. What is XDS? What is the role of BORN in XDS? Will it continue to remain a growth engine when there is a slowdown?
Third one asked me that you invested in networks. You invested in 5G experience labs. You set up labs for 5G. You are the first one who went and acquired a software SDN company called LTO Start. How does that pan out for you? I think now what I'm gonna do is I'm gonna quickly invite Biren, Dilip, Manish Mangal, and the engineering practice, again, a key focus area, Abhiroop. I mean, you guys can come up on the stage. Why don't you share your perspective on some of the questions that were asked to me yesterday night? Is that okay, Biren, Abhiroop, Dilip? Why don't we start with Dilip? Dilip, as I told you, I was there for a very short while yesterday for the dinner. I'm sure you picked up more conversation.
We have been talking about BORN and XDS, being one of the most successful acquisitions and how it has helped Tech Mahindra serve existing customers of Tech Mahindra also. Maybe you wanna give your perspective.
Yeah, it'd be a pleasure. My name is Dilip Keshu, as you know. I'm not from Mars. I live in Austin, Texas. It's been an incredible year. We have about 1,000 Tech Mahindra clients, and the big question was, can we sell to them? Because these clients have worked with Tech Mahindra to build and run systems. I've seen proof that they'll work with us to imagine a future through innovation. I'll give you a couple of statistics that might impress you. Two of the largest luxury brands in the world are now signed with us this year. Four of the largest retailers in the world have signed with us. Two of the largest telcos have signed with us. We won 30 awards this year. Four Webbys, which is like the Oscars.
We have created a studio to do VFX Metaverse transformations, and we won our first contract with one of the largest studios in the world in L.A. It's been a spectacular year. Our work has been amazing. I like to say, one last thing, you know, we are like the yeast that you put in flour, and if the economy gets strong, the warmth of that growth will make us like bread, and I think everyone will want to eat our bread. Watch out for this space. Watch out for XDS. You'll see our growth. Thank you.
Manish, 5G networks. I'm sure you remember the analyst calls. I'm sure the questions you know, and this is the first time, the only exam where you know the questions beforehand.
Thank you, CP. Good morning, everyone. My name is Manish Mangal. I run the network business in Tech M. As CP earlier said, I just landed from Barcelona this morning. We met with at least 100+ CXOs in there. There are three fundamental things that is on top of each one of their mind. Number one is this whole idea of 5G and open networks is real. They are invested and mandated to do that now. Second is they really want to drive an automation as their primary narrative. The third is 5G and the monetization of 5G and how they can do it. I'm very happy to share that almost every one of them have said that they see Tech Mahindra as a very critical partner in every one of their network initiative.
That's not because it has been by accident. It's because we have been very systematically evolving our portfolio. If you remember, we were kind of a field services company before. Now we have evolved into a full stack services company for all of these CSPs. We serve more than 100 telcos globally. Last year itself, we added 42 new logos, especially in the enterprises, because of the necessity for 5G monetization by the CSPs. Very happy to share that the investments in 5G and experience that we have been doing is paying off for us. As we look at the future, really, us becoming a critical part of each one of their network initiative, I'm just excited about that one, and I think growth is tremendous because connectivity for them has become like an oxygen, and now everyone is investing into that one. CP, with that, back to you.
Thank you, Manish. Biren, as most of you would remember from the various interactions we have had together, BPS has been my strongest growth engine in the last 2.5 years. Even the last quarter, they grew about 9% quarter-over-quarter. Clearly, the question that some of you wanted Biren and me to answer was, is there a speed breaker somewhere? I'll let Biren handle this.
Thank you, CP. Thanks for the kind words. I think, we've had a good run. In fact, if I just reflect on the last eight quarters, we've added more business in these eight quarters than the eight preceding years. Last 12, year to date, we've added, $700 million in TCV, which has been the highest ever. I think, there's still headroom for growth, right? I, as of date, I have three verticals within BPS which are above the $100 million run rate mark. There are two that are knocking the door, so there's obviously scope for expansion there. We're leading with CX, all the other portfolios are growing. I think, I'll come back on the stage later and talk a little bit about them.
If I just look at the top 200 accounts, I think my presence is only in 50% of them, so there's a lot of work to be done there. Yeah, very proud that, you know, we've been considered one of the fastest growing BPO businesses in the world. Regarding ChatGPT in specific and generative AI, I think, you know, I was explaining it to somebody that we have to consider generative AI as a 6-year-old. It has a lot to learn, and it'll learn from humans. By the time it comes to, you know, define the future of societies, future of work, as well as future of businesses, I think there's some time to go.
In the near term, I don't see major impact on our business, particularly on the BPS side. In fact, there's an upside because, as I said, most of the generative AI investments right now require human in the loop, which means the bots need to be trained, monitored, corrected, disciplined. A small step here and there can result in, you know, large market cap vanishing as you must have read in the news. In fact, we're already seeing traction on the high-tech side because we are engaging with large service providers who want to train their bots. Yeah, I'll come back later. Thank you for the question.
Biren, a quick follow-up question. You acquired a few companies. How well are you integrated, and what is the punch you are getting in your go-to market?
Oh, yes. Let me cover off all of them one by one. We acquired Perigord Life Sciences, which is an artwork and labeling management company. I'm happy to say that, you know, earlier in the month, I announced that actually that team is taking over my entire Life Sciences business. And that's the vertical which is, you know, heading towards the $100 million mark next. What we've done since the acquisition is expanded the service offerings significantly, and are cross-selling that both to Tech Mahindra customers as well as Perigord customers, right? Similarly, we acquired a work-at-home company called Eventus, same time last year.
They've grown at almost 3x the industry rate in the last 12 months, particularly driven by synergies because their work-at-home practices as well as platform, we've taken it to our existing customers as well as opened new logos there. On Eventus, which is a CX tech company, we've again seen a large amount of synergies because they were primarily U.S.-focused and our customer base is in the rest of the world have actually benefited from their offerings. At the same time, there's been a large downstream benefit where we've been able to convert their consulting customers into our managed services customers. Really happy with the traction, but there's a lot of work yet to be done, CP.
Thank you. Thank you, Biren. I know, we have in the past shared with you for us acquisition is not only for capabilities, but it is also to extend our family to serve our customers. Biren came in as part of the acquisition, and today he handles the largest amount of human capital for the company. Thank you, Biren. One of the prime focus areas for us is engineering services. We have taken a lot of bold calls in that area, both in product native engineering and in digital engineering. I'm gonna invite Abhiroop to share his two-minute perspective on where we are headed.
Thank you. Thank you, CP. Hi, everyone. My name is Abhiroop, I'm from the magical world of engineering services. We come to office with one simple goal in mind: how do I help my customers to design their products and platforms better and quicker? Whether it's the car that you drive or the aircrafts that you fly in or the health bands strapped on your wrist or the fancy dispensers that you use for your favorite soft drink, the mobile handsets that you use, or even the consumer products that you use at home for your daily chores, there is a little bit and more of Tech Mahindra in each and every one of them. In fact, 85% of the 5G devices in U.S. are now assured by Tech Mahindra.
We helped a leading European OEM to register 250% growth in the India APAC region through seven blockbuster programs that were engineered end-to-end from this very campus that you are in. We beat all the COVID disruptions and made sure that our customer launched on time. That's an incredible feat which I'm very proud of. We are a force in the industry, a recognized force, we have the higher rankings within the industry, whether it's the Everest Top 20 or the Zinnov Top 10 digital engineering company or the leaders of IoT as per HFS & ISG, we are a credible force to reckon with. The past few months have been very interesting for us because we expanded our global, you know, delivery channels. We expanded our Fortune 10 clientele.
We won the first metaverse development engineering program. We started our first software-defined vehicle journey with Automotive Silicon Consortium. We deployed our large fleet management software with a commercial fleet in North America. We are now engineering the first cognitive city of the world. You know, our group is very uniquely positioned. You know, there are three forces at play. On one hand, we have these decades rich experience on verticalized domain technology for physical product building, you know, the actual products that we use. We have our, you know, expansive knowledge in terms of connectivity, 5G, connected platforms, and all that we do for the connected experience. Now we have our AI, our cognitive thinking, and all the skills that we have on the future technologies. Now imagine all these three forces playing together.
We are at the confluence of a sweet spot that through which we can create the perfect phygital experience for our customer. Physical plus digital, and this is what our customers are looking for. For FY 2024, it will all be about how we deliver these phygital experiences to our customer in the best way possible. We see growth in 5G, in video processing, in autonomous systems, in electrification, and several more. We are gonna work with PBAC sales, and we're gonna do more of portfolio synergy, and we are definitely gonna expand more on the entire partnership ecosystem to make sure that we have a wonderful canvas to play on. The future is very bright, and I can assure you that we are ready to rise. We're absolutely ready. Thank you, CP.
Wonderful. Thank you again. Thank you, everybody. You know, what I just did was that I reversed, since Bhairavi had said she's gonna do Q&A at the end of the day, I just anticipated a few questions, and I brought our leaders in. What I want to do again for bring you back to this slide, that Tech Mahindra leadership, based on your feedback, is now focused on improving our execution index. The many small changes that are happening to make that happen, on one side you saw the leadership, the other side you will see the one office, which means bringing all the portfolio companies, all the acquisitions, all the competencies, bringing them together into one office and being more unified face in front of our clients. Obviously, we survive, we do well.
As you all know, all our success stories have always been Manish Vyas starting a part of his US journey or rather most of his US journey, by serving only one customer. One office, one customer focus, bringing and rallying each one of us together, that is what has changed in the company. I know when Rohit takes you through some of the metrics, he will be able to show you that those metrics, why they would work and why they are working. I'm gonna actually skip a bit because I had a lot of help by other people to help me on a few slides. Again, just to summarize it, for Tech Mahindra, we are committed to remain customer-centric, client-focused, bringing all the competencies and acquisitions together so that we can give them more relevant, more meaningful solutions.
We are definitely going to create two new streams of business. None of them is new. They all work in progress, but we're going to share with you in great detail today what we are doing on products and platforms. We are gonna share with you in great detail what the bold bets we are going to take on co-creation with the customers. As I said, they've been work in progress for the past few months. In a way, when CTL comes and talks to you about co-creation with customers, he is going to share with you where we are headed, what we have achieved. Similarly, Manish Vyas is going to cover on product and platforms. I know a few of you have given me views that a services company has no business to be in product and platform, and we will answer that question also.
Clearly we do know that this feedback has come to us. We have always been listening. We are not doing anything in a desperate hurry, but we are definitely determined to take four bold bets because Tech Mahindra is poised to be a better company, continuously driven by our five Ps, which is the purpose, passion, care for the planet. We have a separate session on sustainability. Now, the two other Ps that we have added, which is performance driven and products and platforms. Thank you, guys. Thank you. It's been a beautiful morning, and thank you for coming here.
Thank you. Thank you, CP, for that. I now request, our CFO, Rohit Anand, to give an update on our company performance and, followed by Vivek Agrawal's session. Thank you. On our acquired companies.
Thank you, Vrinda. Thank you, CP, for the lovely start to the day. Good morning, everybody. Glad to be here. It's very, very nice to see so many people turn up. It's our first, I would say, big event where, you know, we're sitting in front of each other without a mask, so good to see everybody's faces here. You know, I'll just talk a bit about how, you know what? Start with the report card. Maybe that's the first thing. Somebody can put the slides on. Yeah, thank you. By the way, Manish is here. Yeah. Australia won. Okay.
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Use that screen.
Where is the? You'll have to point, huh? What I'll do is talk about our financial update, operation, progress we've made on the operations side, as well as I'll invite Vivek Agarwal to talk about the M&A journey. We've shared that with you last year as well as an annual process, given the investment we'd had. We want to make sure we give you latest update on the performance on the M&A side. You know, starting off with report card, right? Which is favorite from a finance perspective. What did we tell you last year when we'd met and through the year? These are the few things that we'd articulated.
We'd said, we had made certain investment in the business, in our large deal capability, be it on some of the competencies we got inorganically, some of the organic competencies, and the investment we did on the solutioning side, right? Based on that, we said we're gonna up our run rate on the large deals. We're gonna be a $700 million to $1 billion range. We were earlier at a $300 million-$400 million range on a quarterly basis. This is something we thought is sustainable, looking at the pipeline and the processes that we had. As you have seen the year gone by, we've achieved, you know, this metric and been in the range throughout the year. That's been the positive.
On the revenue side, we'd said, you know, we'll be double-digit plus. You know, we'd given indication around how the growth will look like for us. When you look at the journey, it's been in that direction. Last couple of months or quarter has been more influenced by the macro environment. You see some sluggish, you know, growth there. Overall, when you look at the year, look at YTD, we're in the ballpark that we'd mentioned. Positive in terms of what we said. EBIT is one area where, you know, we've. I'll talk more about it, why, where we are and what were the reasons. Some of these are conscious investments we did for the long term.
Some are market trends that impacted much more than we anticipated, and hence I'll give you a walk on that. That's one area where we need to improve. In terms of our M&A journey, we had communicated to you, if you recall, end of FY22, we'd invested close to $1 billion in multiple acquisitions to build our competencies. We'd said that our focus for this year is gonna be integrating all those competencies, right? We've kept our focus there. In terms of allocating capital to anything new, we said we'll stay away from it, as CP explained, and focus, given the huge investment, on integrating all of this, right? That's something we've continued to be on trend.
Capital returns, CP spoke about it on the interim dividend, but generally we'd articulated to all of you that our policy is whatever we generate in cash minus the M&A, we'll return back in terms of dividend to our shareholders, right? Given not much investment in terms of M&A over the last 12 months, we continue to look at that math and make sure that we follow the policy as we move forward. Again, an area that we are on track on what we'd communicated to you. What I'll do is talk a little bit more on all of this and how we got there, where are we headed in the next few pages, so that I can elaborate more.
You know, when you look at last year, what we said, we were also looking at how the trend has been for us. If you look at some of these metrics, maybe I'll go one by one. I already spoke about large deal TCV. We were averaging around $400 million-$450 million over the last four to five years when we analyzed the data. There were some ups, there were some down. As a systemic process, like we've executed in the last eight quarters, we have been in the range we'd articulated. we've almost upped that run rate 1.8 times, right? What we were. Below that, there's a lot of investment that's happened.
You know, competency investment that we did, solutioning investment, our investment in refreshing the sales commercial team across different geographies, all of that is the underlying reason why we got here. That's one big piece. Second, when we look at our quarterly, you know, kind of growth rates, CQGR, and compare that with FY 2016 and 2020, which is the blue graph, with what's been attained in the last eight quarters, you see that it's grown from 1.4% to 3.2%. Some of it is also reflective in the market, but it also required for us to inherently rehaul a lot of areas within the organization. That's what's reflecting in this growth number. EBIT is one area I spoke to you about. We've improved, but there's still lot to do, and I'll take you through the walk.
When you look at the payout from an FCF to PAT perspective, what we're generating from the business, we continue to drive that better. From a payout perspective, when we compare five years number to last two years' financial year, we've increased our payout ratio from 49% to almost 88%, right? That's a significant uptake. Then from an ROC perspective, you see an expansion of 60 basis point in the two data periods, right? From a metrics perspective, we are looking at this constantly. Our endeavor is to keep on getting better, and we will make sure that as we move forward, we show the progress on all of this. This is margin walk, right?
I just wanted to explain this a little bit because this has been a constant discussion and one metric where we want to explain more what's happened, right. When you look at our drop in margin from last year to this year, I kind of break it down into three buckets, right. The first bucket is where, you know, we articulated that we invested significantly in our competencies through M&A, through an organic route. Now that helps us a lot, and you can see that, right. Our large deal wins are better. Our discussions with the customer are more sticky. We're able to offer more differentiated value in terms of business transformation. All of that is helping us long term to build credibility.
Our competencies around cloud, digital engineering, Hi-Tech, BPS, XDS, is much more significant as it used to be. That investment, in short-term, and I explained it to some of you in our discussions, comes with some accounting charges, right? We have a customer relationship that gets amortized to the P&L. We have certain earn-out costs that gets charged to the P&L because of which we had an impact when you look at last year to this year financial, right? That's one part of the bucket. Second part of the investment that we did was we wanted to change the business from a long-term perspective. We wanted more sustainable long-term sticky revenue. We said one of the things that we gotta up is large deals, right? That's why you see so much investment that we did in our solutioning capability.
M&A is also helping us there. The whole commercial rehaul that I spoke to you about. With that, as you would know, a large deal typically comes with a cycle time where the first 18, 20 months requires a lot of investment, transition, transformation, and then the uptake on the margins happens. It's a, it's a nature of cycle, if you will, that will start turning as we get matured on those deals and gives value, right? That's, that's an area, again, we decided as an investment we gotta do. The third bucket is something where we call it a value gap, where last year it was unprecedented times, right? The supply side market was very, very hot. You saw wages rising like anything.
You would, you know, have a replacement which will come at a 30%-50% more expensive rate than a person leaving. When you look at wage increases on inflation, typically you would see the trend to be 1%, 1.2%, 1.3%. That almost doubled or more than doubled, right? Last year for most of the peers, including us. We made a lot of effort to offset it. We spoke to you about our initiatives on pricing. We ran that like a war room. We got significant price uptakes. We drove a lot of productivity measures, and I'll talk about some of those productivity metrics to you. But between both of them, we couldn't still offset the impact on wage and inflation, right? It was not enough.
That was the third bucket where we had a value gap erosion. Between the three of these areas, two of them which is long-term investments and one which was driven by the way market was, our margins got reflected in what you see from a reporting standpoint, right? The way to look at this is, the first two buckets will come back as we move forward, and as we talk about our journey in the future, they will be the drivers to expand margin. We'll continue to look at productivity as we move forward, and I'll talk about the long-term work for you. This is a way at least we internally discuss, and we make sure that we keep on looking at these levers.
Now again, when you look at operating metrics, which is the last bucket I showed to you in the previous page, these are some of the areas that, you know, from a last year to this year perspective we've performed on. Utilization, if you recall, we'd said we'd done some investment in hiring freshers last year. Our utilization will ramp up as we move through the year. From 83%, we executed or we are at 83%-86% now, right? That's an area we continue to improve on. From an offshoring perspective, we continue to make a lot of significant inroads in getting more and more offshoring. As you do more and more large deals, it comes with typically high on-site population.
As you execute them, as you get the large deals in a maturity state, which is what I explained to you in the margin walk, this will also keep on improving more, right? Versus what you really see here. In terms of attrition, this has been a tremendous effort. Last year, if you recall, we were getting into a phase of inflation across the industry, ranging from 25% to 30%, 32% for peers. This is one area where we made a lot of internal investments, efforts, initiatives, and now the attrition for us is in terms of leader of the peer group. We are at 70%, and this will continue to go down. The market is also easing now. I think this is one area where we are really, really happy with the way we've made internal efforts.
In terms of subcontractor, this is again a metric which we'd articulated to all of you guys. Because of COVID, various other reasons, we had exceeded where we want to be from a comfort zone perspective. We feel we can get a substantial reduction in this as we move forward. This will continue to be a lever for us to drive margin expansion in the next four or five quarters to come. In terms of way forward from here, this was, you know, what happened in the past, how we did last year. Now the question is, what's the strategy for us as we move forward to execute our critical go forward metrics? If you look at, you know, very simple four pillars of our strategy. Drive organic growth, that's what we're gonna focus on.
We're gonna drive margin expansion, and I'll show you how. We spoke about the value that the portfolio is creating in terms of synergy. I'll just invite Vivek to talk three or four pages to share our journey in the last twelve months and even 2019 onwards, how our M&A strategy is working for us, right? What's in store in the future. Just, you know, I'll take it one by one. From an organics growth standpoint, and we'll do a little bit de-detailed session on some of that. CP already mentioned to you, CTL will talk about customer co-creation projects, which is the new growth areas. We will talk about, you know, large deal wins through our panel discussions that we have, as well as account expansion. Broadly, these are the themes that we have.
We'll continue to execute our large deal wins. We'll continue to penetrate deeper in our accounts that we have. CP spoke to you about the 1,200 plus accounts we have. We have a differentiated strategy for each of them. We have more competencies to offer. If a particular account is being catered predominantly by ID services, we have a very strong practice on XTS, we have a very strong practice on network, we have a very strong practice on BPS. We have multiple competencies to now offer the same customer. Those customers anyway trust us with what we've delivered with them, and hence there's easier pitch for them to get more and more business and more wallet share. That will continue to be important strategy as we move forward.
We'll also talk about the new growth areas, product and platform Manish will talk about, and then CTL on customer co-creation. You know, in alignment with our growth strategy, one thing we've done internally, we've increased. We did a lot of investments through M&A in 2022. As we look into 2023, we've increased our share of internal investments. As we look forward, we'll continue to drive that more in terms of investing in the competencies and changing nature of the business. If you look at the pie chart, you know, it just shows you where were we spending money on, and these are more internal investments. We were building competencies, we were doing a little bit of investments in product, and then co-investment with customers were a smaller share.
As we move forward, FY 2023, FY 2024, you know, we continue to do more and more work, which is very, very interesting, with our customers. You know, these are very, very innovative areas, very advanced areas where we're investing, you know, in co-creation. We'll talk more about that. Similarly, the whole potential we have in product and platform business is tremendous. We have already a established practice. As we invest more in that, we'll show you the path, what is in store, from a growth perspective. These are two messages here. One, internal investments increasing overall, so that long-term nature of the business gets, you know, more sustainable. Second, a mix in investment into newer areas so that we are more aligned with the new digital strategy.
This is the margin walk I'd shown in the last discussion also. What drives and what potential we have. We already spoken about FY 2022/2023, so I won't talk about that. As we look forward into the next year and the year forward, you see, you know, we have a lot of levers to work on. CP spoke to you about one element which is where we'll continue to invest in the business. We will also make sure that we're divesting areas which are non-strategic, which are not giving us the value and don't cut the return metrics for us, right? We will divest to further invest in the business so that we create headroom for us, right? From a growth perspective.
We already spoke about some areas we discontinued, FY 2023 in Q2, and we have a similar pipeline which we'll continue to act on and constantly update you. We have a lot of headroom on operating efficiency. You saw some of the metrics I spoke about on subcontracting, offshoring. A lot of automation opportunity in all of the deals, you know, we already spoke about, CP mentioned. Kunal and the team is working on how do you get more automation each and every large deal that we bid, right? That's where the team is getting integrated to get the benefit. We'll continue to work on that. You know, some of the large deal transition will help us in terms of maturity as we get better.
From a long-term perspective, CP mentioned, we keep on looking at our geography mix, we keep on looking at our vertical mix, we keep on looking at our competency mix. Example, digital engineering, right? Digital engineering, we're investing more and more because we get better yields in that competency, right? As we grow more and more of that business, our margins will get better from a mix perspective. Again, you know, we have a roadmap for the next 2 to 3 years on expansion. We keep on looking at it every week, every month, every quarter, and we will continue to execute on these metrics, and update you on a regular basis. This is something that, as CP also mentioned, is the most important area for us, in terms of driving better operations.
You know, on M&A strategy, I'd like to invite Vivek. He'll give you a round-up in continuation of last year. We spoke to you about our investment. We'll talk about how these companies are doing overall as a portfolio, as well as maybe talk about top two or three investments and how they specifically are behaving. Vivek, request you to take next few pages.
Thanks, Rohit. As you know, all of you know, CP and Rohit have spoken about that last 1 year or about 1 year, we haven't done new acquisitions. We've been focused on performance, integration. Next few pages, I'm gonna walk you through what we're doing right now. This is a slide which is very similar to what we shared last year. Our acquisitions are based on certain themes where we've tried developing and scaling our capability across high growth areas. That also aligns with how we've integrated these businesses within the core of the company. The integration has been at many levels. It's been around integration of client accounts, account teams, how we go to market, back office, and systems and processes integration.
Lastly, and most importantly, we've been focused on portfolio integration, which is on saying what does the combination of these businesses with our core create additional incremental value for our customers. As we walk through these slides, these are some numbers, very similar to what we shared at the last event. We've deployed about $1.2 billion of capital in our acquisitions over the last five years. This is cumulative numbers over the last five fiscal years. Just from a performance perspective, since the time we've acquired these businesses, and these are standalone numbers only, and I'll talk about synergies separately.
These businesses have continued to grow at, you know, 4.3% CQGR, which is close to 20% annualized growth rate, which is reflective of the capabilities and the service offerings which came into our portfolio as part of these acquisitions. We've expanded our margin since acquisition of 90 basis points. Largely, when we put our business cases together, as a portfolio, both from a revenue growth perspective and margin, the $1.2 billion of investment which we've made, is on track to deliver the returns which we anticipated on the acquisitions. A very quick update on the three biggest transactions we did in the last couple of years.
This has been the most significant capital allocation from our perspective. It's about 50% of what we've invested in. This is... I'm not going to read all of it, because the slides will be available, but just I wanted to largely stay on revenue growth, synergy, and our integration. We are on plan. There have been hiccups. I don't want to call out, especially, the largest acquisition we did was Citisoft. If you recall, the business had an operation in Belarus, and because of the war in the region, we had to shutter that operation very early after our acquisition. I think we've gotten behind that.
focused on not only growing organically, and I think we are on track to deliver its top-line numbers. Short-term impact on profitability, which is behind us, because of the war and the needing to shut down a set of operations. We are driving global synergy. We are driving synergy in the insurance space. And more importantly, we are driving synergy from our global clients for digital engineering solutions delivered in that part of the market. DigitalOnUs and Elias, two other acquisitions in the digital space and the high-tech industry. One helped build and scale our cloud capability and our global delivery capability around cloud.
The second one is focused on hyperscalers and helps deliver engineering solutions for the high-tech industry. On plan, except a little bit of slowdown in the high-tech industry, is impacting the Elias synergy revenues. On a standalone basis, we're doing well. I think the only other point I want to remind is all our acquisitions and our business cases are based on standalone, and I think anything we create on synergy is additional value creation in our evaluation. This is largely, you know, the process we've been following, consistent, standardized playbook and approach on how we are going about integrating our acquisitions.
Synergy, big, big, big focus area for us in terms of how we look at it. There is a lot of joint account planning across our existing clients which come through the acquired businesses, and a significant amount of focus in creating the right solutions with a combination of capabilities. What you will see in a number of sessions later today is real examples of how that synergy is working and where we've brought capabilities together. I'm not going to talk about specific examples here. A large part of our large deals, what the numbers you saw from Rohit and CP spoke about it, now have a significant combination of and contribution from the capabilities through our acquired businesses in all our proposals. Rohit?
Thank you, Vivek. We keep this part which Vivek just spoke to you about as a regular feature of briefing you, at least during this event, 'cause we wanna make sure that, you know, from our capital committed perspective, you get a flavor of how this is going, right? This is very important. You know, just to wrap it up, from our perspective, the fourth area, which is capital return, we're committed to it. We will continue to stick onto the policy we've communicated. You know, I'll reiterate, any free cash flow that we generate minus the M&A goes back in terms of capital return to shareholders. That's what we've articulated. Over a period of last 3 to 4 years, the ratio has been, you know, 60%-64% has been returned back.
The rest has been invested in M&A. That's the indicative range we've given as well. When you look at comparison of last few years to last 2 financial year, you see our payout ratio is up from 50 to almost 87%. Our interim dividend CP mentioned about was up from INR 15 to INR 18 per share. We'll make sure that, you know, our cash required for the business is optimized and everything beyond that is as per this policy.
All in all, wrapping it up in terms of our recap of strategy, we'll focus on organic growth, drive margin expansion, drive value from our investments, on inorganic side so that we get the right synergy, and then make sure that we stick on to our capital, return policy that we've communicated to you. Thanks for the time, Vrinda. Thank you.
Thank you, Rohit. Thank you, Vivek, for those insightful number crunching. For our next session, you may all recall that we've been constantly innovating and investing in our platform strategy. We've had tremendous success in the last 12 months, and we're making a big pivot around the strategy. I would now like to invite Manish Vyas, who for the past 12 months has been spearheading operations for most of our service lines like BPS, Networks, Engineering Services, BORN XDS, and Comviva besides, of course, the CME. He will share our learnings on how all these capabilities come together, and, more importantly, our plans around platforms and products. Thanks. Over to you, Manish.
Thank you, Vrinda. Morning, everybody. Good to see you all. Thank you so much for being here. Yes, we will indeed talk about CME business also. I know we've had chats yesterday evening, all of us do want to talk about how are we doing, particularly with the telecom business. When Jagdish comes on stage later with our vertical heads like Dhanashree, we will indeed talk about that. We will also speak about little bit more during the breaks, we've already had some chats. One word, yes, we are extremely excited about that business. To Vrinda's point and how CP pointed out earlier, over the last 12 to 14 months, CP entrusted in me the responsibility to assist and supervise and help our lines of services.
BPS with Biren, BORN XDS with Dilip, Comviva, our product business with Mao, network services, of course, with Manish Mangal, our engineering business, most of it. I'll tell you what I did. I just did two things. One, because of the... You heard some of those leaders here, the rock stars and stalwart that they are and their businesses are, I just left them alone. The second thing I did is I just learned from it, particularly on how these businesses were innovating every single day in their own unique, innate way to try and add value to their respective customers through our own IP, right? That was very essential as a, as a learning through that process. CP stood here and asked and said that we'll be addressing a question that why should we be in the platform business.
I hope at the end of these 20, 30 minutes and during the conversations that we will have, we'll be able to hopefully move the needle on the convincing aspect on one or two things. One, I don't think it's an option. It's a mandatory thing. It's a huge differentiator for a company like us to continue to innovate on our IP, on our platforms, our product business, and we continue to invest in that. Number one. Number two, I think we owe it to our customers. For 30 years, we've been working with these customers, now over 1,250 odd customers.
The amount of learnings we get from them, we derive from them, the value that we have delivered over a period of time, there is unbelievable amount of IP that we have collected, that we need to take advantage of and provide value back to the same customers that we work with. The third, I think as the pandemic may have induced this, you know, whatever you call it, the talent war, right? The pandemic also induced one more thing. I think it's clearly that this, the new normal model of delivering service, I think is here and will continue to stay, right? It's a nonlinear model. It's a model where you know, some might even argue it's more like a service that will be delivered like a software and not software as a service as well.
More of that, as we, you know, unveil and look at our overall approach, our strategy, and most importantly, our success in what we have achieved in the platform strategy over the last 12 months. Hence, why should we all be very excited as we go and dive deeper into this business? First and foremost, I truly believe that this is indeed a nonlinear growth opportunity for us. Some of the statistics that, or the advisory words that we keep hearing from people that we talk to in industry, are pretty, you know, compelling. It's very clear that companies that have continued to invest in platforms have a much better chance to grow at a faster clip.
Number two, one thing that we have always been doing is we have always said we are two mile you know, wide and ten mile deep, and that's all about creating that stickiness with each of our customers. Platforms and our ability to work very closely with them at a core IP level improves our chances, this industry's chances to continue to get a much higher degree of repeat buys. Third and foremost, I mean, Rohit stood here and spoke about that little cross in terms of improvement in EBIT. Well, clearly this is not going to. This is not the only lever that we have. Obviously, it's, you know, you need lot more. This is one lever and one area which clearly can drive a better yield, because this is all about doing lot more with lot less, right?
That's why the platform business is equally strategic. As far as our right to win is concerned, it's very clear, right? The 1,250... Sumit, this may be an older slide. You may want to take a look at it. You wanna change it? Else I can keep going. 'Cause the change was just there. I think the key... You know, before we look at what we have achieved and how we go from here, I think let's try and understand what exactly is a platform and, you know, what are the building blocks of a platform? Why do we call this a platform and then a product strategy? That, you know, we are not leaving any of you confused about what our strategy is.
Our platform strategy is built on a large swath of code base that we call as our innovation hub. Think of this as 1 single massive piece of software that is centrally sitting and helping the entire company, all our customers, all industry sectors, all competency units, all pillars and business units that you saw, it helps them drive their IP development here on that 1 particular code base. What that innovation hub really has are about 4 layers, right. It has lot of utilities, whether it is managing, how do we integrate with cloud, how do we integrate with, from a DevSecOps, from a security secure code-based standpoint, how do we build data and insights, right.
At a very foundational level, how do we ensure that there is a very common experience layer in terms of managing all channels of engagement for our customers with their respective customers, and of course, drive very basic use cases in terms of personalization, and hyper automation. The fourth important thing that we have is a set of capabilities that we have built that are essentially around things that can be repeatedly used multiple times across different. So you take one industry vertical, you take a set of capabilities that solve a very specific functional problem or a very specific technology problem. So just to go back to this slide so that I explain this better. We do not sell what you see as layer one and layer four. That's not monetized.
We don't sell that as a license. We don't ever tell the customer that, you know, this is what you're buying. That is what we build all our products on top of. What we sell is what you see at the right at the top, which is the modular platforms. That's monetizable. How we monetize that and why those are differentiated is based on the four layers at the bottom. I hope that's very clear. The question is, what are those, you know, the top layer really that you see, which is the modular platforms as we call them? This is what it is. Essentially, our platform strategy is all about empowering the C-suite of any enterprise in any industry sector, right? All the verticals that we serve to solve three primary problems, right?
We spoke about MWC, all we heard from the customers there, all innovation that we saw and what we presented were also in these 3 areas. When CTL comes later or when Jagdish and teams and Kunal come here, ask them this question, they will also be talking about the same thing, and that is to solve 3 fundamental inherent problems. Number one is to continue to automate and help take cost out and simplify the operation. there is IP that essentially will help us to try and take cost out, improve the optimization, improve the efficiencies of any operation, whether it's a CIO or a COO for that matter. Two, it's about building the new stack much faster. I was telling somebody last night that 10 years ago, to put a new BSS system in telecom alone would have taken 18 months.
We just finished a rollout in Singapore. It took us seven months, and mind you, we lost two months, the very first two months because of some change in the organization on the customer side. In essence, it was done in five months time. What has changed? What has changed is because the underlying software that is available with us now. We were able to bridge that gap from time to market, time to realize the potential of that software much, much faster, right. The third is all about monetizing the assets or participating in the revenue cycle for the customers.
When we look at platforms, when we look at our product strategy, when we work on top of those four layers of innovative software that we have, it is in a sense to drive value for our customers in these three segments, right? I hope that makes sense. Let's try and unpeel this onion a little bit and try and look at what we have done over the last 12 months before we take a step forward, right? It's been a phenomenal year from the progress that we have made with each of these individual products and the modular platforms that we have built on top of the underlying architecture, right? Let's take netOps.ai. It's still a story that has, you know, that is evolving. We just won about seven customers at this point.
7 of our existing customers are now on the netOps.ai platform. We announced 1 such deal only last week or 2 weeks ago, on 23rd of February, where the entire network automation for rolling out and for managing the maintenance of an existing installed base of a network is going to be driven through the netOps.ai platform, right? It's all about shifting left from reactive, preventive, maybe predictive maintenance, more towards cognitive, right? Blue Marble is a sense, you know, after a long time, we finally have a brilliant story of creating a SaaS-based BSS platform to take the industry bigwigs head on in this space, right? It's about 18 live customers as we speak. Outside in the experience zone, you will see 1 platform called UDxP, which is a unified experience platform, where we have combined capabilities of 3 things that we have.
Blue Marble, MobiLytix, which is a CVM platform, and BORN XDS's capability from a user experience standpoint. Have created an entirely different outcome for a challenger telco, right, in one part of the world. I mean, the capabilities that these platforms now bring, I think are second to none in the industry, but the best news is we've just begun. Our journey has just about begun. On the sustainability side, and Sandeep Chandna is here, we can all talk to him a little later. We believe that from the whole sustainability and ESG standpoint, the addressable market is still evolving, still large at this point in time.
We have started working very, very closely by leveraging our Data AI abilities of that, of that foundation hub and starting to address and work with some of our key customers, you know, from a smart data acquisition standpoint. This is where the platforms and our capabilities come to, you know, come into force pretty nicely. If you were to ask me that, who addresses the network field force, automation, the instant answer can be network services. Yet it is Biren and his team that basically looked at the data science that we were producing inside the BPO business and created Yantra.AI to disrupt how the field is automated, not just in one industry like telecom. You can imagine any industry out there, whether it's the healthcare industry, the logistics, distribution, doesn't matter. Anybody who has a field.
We just launched it about five-six months ago, this platform, and already have three live customers very early. The biggest right to win we have is the fact that that access right that we have to the customers and the proximity that we have with them, relationship-wise, we can always go and say, "Hey, take a look at this. This potentially solves a problem and can solve this problem on a very repeatable, very consistent basis again and again and again." In the core cloud infrastructure space, I think what we have done over a period of time is we have created this technology and platform called Cloud BlazeTech. The addressable market for this is just massive. Again, our lens is very specific.
We are looking at our existing customer base going and attacking each of them in improving the speed at which we will be able to help migrate the workloads faster, the speed at which we'll be able to help them discover and do the assessments of what should go on cloud, what should not go on cloud much, much faster, right? We already have 30 customers, like I said, 1,250 odd customers, 30 on this platform. I mean, I wouldn't be surprised if by end of, you know, this year, next time we all meet, we won't have another 100 customers on this platform. Affinities, I think is a, you know, you may have heard of something called warranties in the past. We've now created a more generic industry-wide program that supports largely manufacturing in the aftermarket space.
In a sense, the core, the code base that we have can be used for any other use case where you're talking about solving problems of aftermarket support to any existing customer, whether it's an electronic, automotive or any other, you know, any other product that sits inside a premise for a consumer or a customer at that. A few more. MobiLytix, I think, is an award-winning platform that we have created around our customer value management. Right? I mean, this is something which is just evolving so nicely now. We have had CEOs of enterprises coming and telling us that they derive maximum consumer value or customer lifecycle value through MobiLytix as a platform. Right? I think that story continues to evolve extremely well for us.
A very young story for us is YABEX, in the cloud lending and the savings area. We've just hit about 1 million unique customers recently. Like I said, maybe the speed at which we are growing every single quarter, every three months, hopefully we will be at about, you know, $10 million-$15 million ARR by end of this year. Small stories, but the potential that each of them have is absolutely phenomenal. Mobiquity is an older story for us, but now evolving quite nicely as the next phase of the software that we are writing on it from a digital payment standpoint, right?
You know, somebody in MWC came over from Africa and said, "Do you realize that 70% of our GDP runs through the Mobiquity platform?" Because that country, that small African country, relies a lot more on the mobile payment as a method of payments, you know, in their community. The impact that each of these innovations in the past and going forward will make on our customers and our ability to add service layer on top of this platform and this modular product level, I think is just absolutely phenomenal. If I say that platform going forward is an essential element to how we will differentiate as a company across industries, across our lines of businesses, I think it is something which is being derived based on the success that we have had in the last 12 months.
We believe this business is poised to continue to grow, you know, much faster, about 2x, at least in the next three years, maybe more, right? I believe I'm being conservative here when I say that, because our base is not that small and yet not that big enough yet in terms of the impact that it will make. Most importantly, I think we have figured the conundrum. After a few years of R&D and experimentation in this space, we have now understood what does it take to build a world-class platform and then world-class of product sitting on top of them.
We have figured what problems do we need to solve, you know, as far as looking at all the databases that we have in terms of what are the projects, thousands of projects that we deliver, what do we derive from there. This is a new medicine that we are giving to an evolving set of problems as we go forward. Last but not the least, very soon, in about a month from now, sometime in April, we will also be launching our Comviva 2.0 plan, because in a sense, the Comviva platform will own the entire platform strategy for the company. That does not mean that all product business will be done inside Comviva. We'll do it everywhere. But the core platform and the engineering capability for driving this initiative will be housed under that.
We already have added significant leadership to that unit, right? I mean, Vineet is sitting here. He's adding the strategy piece to the platform strategy. He's come from one of the acquisitions that we did called DigitalOnUs. We've already acquired a chief growth officer sitting in Texas to run the global sales for our platform and product business. We'll continue to look at that. It's very clear. The overall technology roadmap of our platform strategy is very, very clear to us now. The success that we have had in the last 12 months gives us enough confidence that we know what it takes to continue to develop this. It's also very clear that given the fact that the customers are asking us very pointed questions in terms of speed of delivery, cost of delivery, and the business outcomes.
I think for that very repeatable and very consistent patterns of results, I think it's important to lead off IP, lead off our product, not just through our people and processes. I think this is a technology, led, IP-led effort to essentially solve the same problem. Hence, if any of you still believe that this is a business that we should not be in, I think we need to understand Tech Mahindra at a very core innate level, and this industry at large. It's not just a Tech Mahindra story in my view, right? I hope that was helpful. We can have more conversations on this as we go forward. Thank you.
Thank you, Manish. Our next session is a fantastic peek into the factories of the future, cities of the future, and value creation of the future. I invite CTL, who's President, Enterprise Americas, to share with us how we are scaling via strategic partnerships with our customers and leveraging digital technologies to enable our customers to win in the marketplace. Thank you, CTL.
Thank you, Vrinda. Good morning, ladies and gentlemen. Interchangeably, Lakshman and CTL, both is me, so don't get confused. Delighted to be with all of you here today. Wanted to talk to you about how Tech Mahindra is co-creating with our customers and our partners, and sometimes both, to do 2 things. 1 is to address important industry problems which have a huge replicability across the enterprise. The other is to identify trends that are emerging, which we believe have a huge growth potential and ability to tap into it. The idea is there are strengths that we bring to the table, and then there are complementary strengths that our partners and customers bring to the table. How do we combine 1 plus 1 to make 11 happen? That's the story today.
I'm going to talk to you about Factory of the Future, which falls under the Industry 4.0 classification. Before that, I want to talk to you about a couple of important industry trends that are taking place. The first one is the Western world has woken up to the fact that we are over-dependent on China from a manufacturing perspective. There's a customer of ours, the single largest market of the U.S., 92% of the sourcing, mark my words, 92% of the sourcing is China. We did the work with them where we moved $1 billion worth of manufacturing outside to Mexico, India, Vietnam, all these places. The Western world now says that we'll have to move, which means there'll be a whole lot of change in the supply chain, new factories coming up in multiple different places.
We hope India is going to. The first three decades, last three, four decades IT, the next three, four decades, we believe could be manufacturing. The second is President got the infrastructure bill passed. It's going to be a $1 trillion investment into the U.S. economy. Obviously, bridges, but they are also gonna focus on moving manufacturing capability into the U.S. You must have all heard Intel is putting up a chip manufacturing plant in Ohio. A Taiwanese company is putting a chip manufacturing plant in Phoenix. There's going to be a lot of government support to bring some amount of manufacturing back into the U.S. We believe that that's another important macroeconomic trend that we need to keep in mind. The third is what digital technologies have done. They've just swept the landscape in the last few years, AI, AR, VR, now Metaverse, quantum computing.
It's making it easy for us to put together solutions that we couldn't have imagined we could do in the past, right? With that, I'll go into the Factory of the Future. This is a partnership with a large automotive OE. We've implemented. Whatever I'm talking about, it's a living lab at Chakan, and we've implemented this. It's working for all of you to see. We've implemented, you know, leveraging the telecom strengths that we have. We've implemented 5G in the Chakan plant, right? I'm going to take you to different parts of the plant. Just follow me as I walk through the plant. The first place is the paint shop, right? As you go in, there is a XUV700 that's been painted, and the new vehicle that's coming in is a Scorpio.
There's computer vision in the plant hooked onto the 5G LTE network. The computer vision will now know that as the XUV700 goes and Scorpio comes in, this is a Scorpio. It'll change the paint settings automatically so that the new vehicle gets painted and gets out. The second thing is flexibility. Everything about an auto OEM is going to be about flexibility. If you go to a body shop, you don't have dedicated plants now running each vehicle. It's flexible. You have XUV700 followed by a Scorpio, followed by something else. Here again, computer vision is at work. It figures out which is the product that's coming in. Now to add to the complexity, all of you guys have become discerning buyers now.
You can customize your own vehicle, which means if that customization comes, as the vehicle is rolling in on the assembly line, parts that are required at different parts of the assembly line automatically come in. The third concept that I want to talk to you about is called no fault forward. You have conveyor belts. These conveyor belts are interlocked with hand tools. Assume that I'm a worker in the factory, and I'm tightening nuts, and I've not applied enough torque. The conveyor belt will come to a halt until I rectify or whoever is the worker on the shop floor rectifies the fault. These are intelligent lines, error-free lines. What it has done to productivity is just amazing. Earlier, used to be tested by tuning on the engine for 25 minutes. Every engine for 25 minutes. Just imagine the gasoline that's getting burnt.
Today, because of this, they've stopped testing engines altogether. It's not required because you're so sure that what you're rolling out is fantastic. as you look at the factory, the idea is to come out with a single platform which will provide services. with computer vision, if someone has to wear a hard hat in a particular place and they take the hard hat off, immediately computer vision send a message across, a warning so that incident gets corrected. you're making the plant a safer place. You're making the plant a more productive space. You're making the more cognitive space. It's just amazing what digital technologies are doing to transform this operation. from a tech perspective, we have always been very comfortable connecting the shop floor to the top floor.
You have SAP systems, you have MES systems, you connect the wire all and make it. That's been our sweet spot. In collaboration with the automotive OEM, what we are now doing is we are moving into the plant. We are using our technologies, edge computing, a whole lot of manufacturing operations end to end, right? We are very thrilled about, you know, what we are seeing, what people here to make production lines flexible and automated. Look at the market potential here. This is estimate will spend. My colleague Abhiroop said, we know the physical world. We love operating at the intersection, which is phygital, right? This is an example, you know, of how we can make this happen. Look at the value creation here. It's just amazing. Zero defect. There's a 70%.
Now, the beauty of digital technologies is sitting in thin air. You're putting statistics, right? Why we believe that everyone will adopt it is simply because this pays for itself. Pays more. In this plant, they are using less energy to manufacture an SUV than they did five years ago. That's the statistics, right? The other thing is you see the last item here, 2,000 machines which are connected. You have sensors. The sensors are bringing data in. They're doing advanced analytics in the background, and the machine is talking to you 24 by seven. It's telling you, "I'm not well." You provide intervention services. You lengthen the life of parts. This is a great sustainability story. What happens here? You provide preventive maintenance, predictive maintenance. What is the end result? Productivity goes up.
All this, ladies and gentlemen, is not a PowerPoint. It's a living lab at Chakan, you know, Rohit Anand can arrange a tour for you to visit the plant to see all of these. The next thing that I want to talk to you about is how we are co-creating with an automotive OEM from an electric vehicles perspective. You take automotive OEM. I'm talking not just automotive, heavy trucks, everybody. There's an explosion happening on the electric vehicle front. As we talk, there are factories that have been set up, both brownfield and greenfield, for manufacturing EVs, for manufacturing batteries. We believe that we are in a. You know, you heard Abhiroop talk about what we are doing in the electric vehicle space.
I would strongly encourage all of you to visit our booth here, where they brought the eAxle for you to see. Right? We are, I think in, when this explosion on EV is happening, I believe that we are very well-placed. Right? Very well-placed how? We can do this entire value chain. Top hat design. You know, we acquired Pininfarina, which is one of the leading industrial design houses, automotive design house, right? Top hat design, you know, then moving on to manufacturing and supply chain. Is a very complex space, and Tech Mahindra has deep expertise. We've got control. You know, we invested in a company called iTech, which does RFIDs. If you go into a warehouse, you know, managing the warehouse, interconnected to RFID, having a control dashboard, these are all assets we've already created, right?
Then, you know, doing the interior design and then the platform. The eAxle in particular. This is at the heart of EV propulsion. We have, you know, configurable eAxles from 50 kilowatts to 150 kilowatts. We believe that we can bring everything on this platform tightly come, you know, coupled together to deliver, you know, great results. Now, I want to go into how we are co- Engineering pro-construction space, right? As I told you that, in setting up in Ohio. me to this up for them. Can you hear me now?
Yeah.
This is what, you know, these people are doing, right? They set up complex plants. The way they operate today is it takes multiple years for them to get a huge LNG plant or a data center for Google or something like that set up, and they hand it over and walk away. The value prop here is how can TechM and this EPC major come together to deliver a range of high-end digital services like I described in the Factory of the Future, right? We get into this plant and provide this entire range of services, providing preventive maintenance, predictive maintenance, safety, everything that I talked to you about. Create high-end digital revenue, which comes at good margins. Stay embedded within these projects for years. Why this partnership?
Because the automotive space doing the OT work, not the IT work, the OT work, that is what the partner, the automotive OEM major we are working with, they are bringing in that expertise, and we are learning along with them. This EPC major is a big player in the oil and gas space, so they're going to bring the domain expertise from an OT perspective, right? Combined with our expertise, right? Different industries, we go into process every other industry. Develop Factory of the Future and just amplify it, take it further, deeper, right? The advantage is this is a firm that's been in business for 100 years. It's got a blue chip customer base, and we have complete access to this customer base. It reduces our time to market. I tell you why it's so important. We...
Someone asked me if, you know, if Tech Mahindra is a runner, what kind of a runner are you? Do you run sprints or do you run marathons? We run marathons. For us, a new deal could take eight to nine months to 12 months to open up. We would spend $1 million in pursuit. If you have a great solution like the Factory of the Future, then you tie up with this EPC major and open up their customer base, reduce their time to market, while parallelly every day as you talk about the Factory of the Future, you're investing in it. You're learning, and you're getting better and better and better. The distance between you and competition is getting wider and wider and wider. That's what excites me most about this space.
I'm going to talk to you about another exciting thing. I just love this technology. Augmented reality, virtual reality is going to transform the way we live and work, the way our children go to school, The way education is going to come. I'm so excited with this technology. It's affordable, it's easily mountable, and I'm gonna talk to you about how it's transforming the way an automotive customer of ours delivers service. This happened during the pandemic. You buy a car. The car develops a problem. You take it to the mechanic, the mechanic would replace whatever, you drive back, right? That's the fairy tale. In 2%, 3% of the cases, the problem in your car is so complex that the dealer mechanic can't solve it.
At that time, the automotive OEM has to have a subject matter expert fly in to fix the problem. The car has to be shipped back to a central place. Just imagine the cost, the pain. The pandemic, people were not able to travel. What we did here was to put a solution together where the dealer mechanic. The concept is I see. I see what you see. That's the concept, right? The SME sitting wherever would wear this glass and the dealer mechanic would be wearing, you know, the intelligent glass, you know, upfront. Sitting remote, the subject matter expert can guide the dealer mechanic to fix the problem. Hands are free. They can bring up spreadsheets, they can bring up diagrams and guide the dealer mechanic to resolve. 80% first time resolution.
That's the impact of this technology. When you do this successfully... We did it with 15 dealers first. 15 dealers. Today, this is deployed with 4,000 dealers worldwide. China, Taiwan, Europe, U.S., everywhere. I just looked back and said, "My God, what is the scope of this business?" The scope of this business is in the U.S. there are 1 lakh 87,000 technicians. 1.4 million repair jobs where tickets are open today. That is the potential. You don't stop with this. You can sell... This solution can be taken across all our verticals. Just imagine there's a logistics company in the warehouse. You go into the warehouse. I talk to you about our supply chain solution where we have a control tower. We have, you know, we have this RFID solution. Link to all this can be AR/VR.
Anywhere where someone has to maintain a machine hands-free, this solution will work, right? I'm going to ask you a trivia question, so pay attention. We today have customers where we are billing $20 million a year on this service. Multiple customers. We started with one auto OEM. Today, multiple auto OEMs have bought it, and with every auto OEM, new features are coming in. One of the newest features that have been implemented is so exciting. When your car has a problem, there's a defective part, and when the defective part is taken out, they use this technology to validate whether the part can be repaired or has to be scrapped. The part gets shipped back to the OEM in whatever fashion, right? There's a whole lot of costs incurred in transportation. All that will be avoided completely.
The SME sitting in the central can say, "Don't even ship it. Scrap it right away." The trick question now: $20 million is the revenue. How many people do you think are delivering it? Take a guess. Pardon?
Five.
Five. You're at a different level. You're tougher than I am. Any other helpful second guesses?
Fifteen.
Okay. Thank you. 15 people are delivering this. 15 people are delivering $20 million worth of service. I can keep expanding that and the number of people I have to add. What I love about this business is we are disconnecting revenue from people deployed, and we are delivering margin, and every day we are getting better at this job. That's what excites the hell out of me.
Hello, everyone. My name is Bryan Jenkins, and I am the strategy manager for the Ford Technical Assistance Center. My team and I were tasked with developing and launching the See What I See program, better known as SWIS for short. We knew from the inception of this program that this would be a global process, and that we would need a partner that was capable of co-creating and launching a project that involved a high level of technical complexity, while also scaling across the majority of our global regions. Our collaboration with Tech Mahindra has been a key factor in the success of planning and deploying the SWIS project. Tech Mahindra has provided Ford with a comprehensive turnkey solution covering all aspects of the rollout, including dealer enrollments, shipping, logistics, along with dealer activation and onboarding, as well as dealer support.
Their partnership has enabled the Ford team to meet all of our expansion targets, and we truly value the working relationship that we have developed as a result of this partnership. We are looking forward to the continued collaboration and success of the SWIS project as new use cases and opportunities for this technology present themselves. Thank you.
Thank you. Thank you. I'll move on to a partnership that we have, and this is in the public domain. This is a joint venture with Sumitomo, which is one of the world's largest, most admired conglomerates. This joint venture with them is in the to address the Japan's engineering research and development market for automotive, which is expected to be about $50 billion. Why this partnership? You know, Japan is a unique market, cultural, language skills that are required, access to customers. Sumitomo brings all of that. I've already described the range of skills that Tech Mahindra brings to the table from an automotive engineering perspective, right? We believe that this is a great marriage of two partners who bring complementary skills to the table, right?
The deep, you know, talent base that we have to kind of scale and address the needs. Those are the reasons, you know, for this JV. We believe that both of us bring the right credentials, the market's ripe, and we are very excited about this. Finally, I wanna talk to you about a partnership that we have in creating, you know, a cognitive city. There are few cities that are being developed, and these are all a trillion-dollar projects, right? At the base level is a 5G plus, plus network that connects the whole city. Tourism spots, hospitals, you know, sports stadiums, residences, everything, right? Then a layer above is the data analytics layer, because once you connect, everything starts talking.
The ability to bring this data into a data lake, harness it, do advanced analytics, makes decision. On top of it is the AI layer, where it's cognitive, it can take intelligent decisions, right? That is conceptually what's happening within these intelligent cities that are being constructed end to end. Our digital engineering services, we'll bring everything that we have at Tech M. You know, our telco strength, our digital engineering strength, our edge computing, a whole lot of technology that goes into the background to create and make all of this happen, right? We are excited about this as well. This is my final slide. You can't do everything in life alone, right? We have to partner in order to, you know, get complementary skills together to be able to make magic happen.
30% of our customers have been with us for 5 years or more. In many cases, we know more about the customer in parts than the customer knows themselves. We are now tapping into that strength to understand, you know, what else can we do? Our customers know exactly what the problems are. You know, the Ford solution that you saw, both of us brought it together. There was a problem, we sat down, we discussed. We have access to a huge knowledge base, both with our employees and with our customers. We're going to tap this. All this that I talked to you about just now, I think we are scratching the tip of the iceberg. There's so much more to come, and I'm excited. Thank you again for this opportunity.
Thank you, CTL, for that insightful session. We'll now break for lunch, and we'll be back sharp 2:00 P.M. As I told you earlier, there's an immersive experience zone outside. Request all of you to please visit it and, kind of, you know, look at the solutions that we have for you. Thank you all so much.
The drive to build a sustainable future is within us and all around us. At Tech Mahindra, we cemented our commitment to creating that future, establishing sustainability in practice, goals, and outlook many years ago. In the last decade and more, we've come to understand that being sustainable is about leading by example, whether it is in the list of global companies with high ESG scores or in setting the standard for best practices by connecting ESG efforts to strategy, financial metrics, and reporting at global standards. From board oversight on internal sustainability issues to the zeal for increasing renewable energy mix to 50% by 2025, becoming carbon neutral by 2030.
Reaching net zero by 2035 and in setting personal best in internal carbon price, climate change scope, emission reduction, rainwater harvesting, and waste management. Tech Mahindra has made leading by example a way of life. We're carving out a decarbonization pathway by prioritizing renewable energy, IoT-led efficiency, commute optimization, and more. Extending sustainability to supply chain management through governance, ethical business conduct, and environmental stewardship. Protecting and promoting biodiversity by adopting circular economy principles and making sustainability personal for our employees, empowering them to be Green Marshals with over 5,300 hours of participation in the last year. Sustainability is a calling within each of us, driving us to reach for higher, greater goals and enabling a truly sustainable business to create a better world and an imperishable future for all.
This is a time of rapid change. Businesses know that going digital is the only way to stay ahead and stay competitive. Even now, less than 30% of digital transformations are successful. The biggest challenge is fragmentation in the market, leading to transformation in silos with solutions and strategies that are not aligned and results that can't match expectations. At Tech Mahindra Business Process Services, we are all about breaking the silos. Ours is a holistic approach to enterprise transformation, going all the way from hiring the right talent, training them to be at their best, to performance optimization and management, and ensuring operational excellence. Driven by data, delivered with complete transparency to bring you closer to your business objectives. Think industry-leading CX solutions. Think plug-and-play platforms, comprehensive digital transformation services, and streamlined enterprise back-office operations.
Powered by our next gen AAC approach, combining analytics, automation, and consulting. For you, this means data-driven customer insights, engaging and connected customer experiences, automated business processes built on AI. Effective decision-making for better return on investment. It's all about helping you run your business efficiently, adapt faster, and discover new revenue streams while harnessing technology to elevate the human experience. Today, we stand at the threshold of the next paradigm shift, ready to shape the enterprise world of tomorrow. The future is now, we have the vision, expertise, and ingenuity to keep you at the forefront of the digital revolution.
The technological evolution triggered by 5G, hyperautomation, artificial intelligence, machine learning, and cloud adoption is opening new opportunities for communication service providers and enterprises around the world to monetize their infrastructure assets, innovate services to meet their customer needs. Tech Mahindra, the world's largest independent network services provider, is unlocking the value of the network for our customers for over 25 years. Tech Mahindra is on the journey to simplify complex operations, modernizing the technology stack, and monetize network assets, building a strong foundation with our end-to-end solutions, services, and frameworks. Introducing TechM NxT of Networks. Tech Mahindra's end-to-end network transformation solutions with focused next gen managed services and hyperautomated platforms are continuously enhancing customer experience and generating additional revenue streams.
Our comprehensive portfolio of network services enables our customers to address multi-domain network transformation across radio and fiber networks, end-to-end network cloud and automation, operations tools and support systems, managed cognitive network operations, enterprise network as a service. We are also creating the network of the future with labs across the world. What's in it for your business? With a global footprint in over 90 countries, Tech Mahindra's Next of Network has helped 300+ customers in their network transformation journey, including tier one telcos network transformation projects globally. With our strong partner ecosystem and in-house solutions, we are ready to simplify, modernize, and monetize your network with Tech Mahindra's Next of Networks. Are you ready for the network of the future?
As customers are moving from digital transformation to a more cognitive approach with ecosystem stakeholders, we're here to develop solutions for them that enable creating business outcomes. How? We assist enterprises in developing innovative business models. We do this by leveraging AI, platforms, and enterprise applications. We provide businesses with relevant insights. We enable businesses to create immersive experiences with our innovative Metaverse offerings. We create a leaner core using APIs and enterprise applications to connect with channel partners. By facilitating cloud transformation for enterprises, we boost scalability and speed up product rollout in the marketplace. We simplify our portfolio with business platforms, SaaS services, and ADMS NXT.NOW for easy navigation. All of this allows enterprises to seamlessly integrate applications, infrastructure, and undertake cloud migration, ensuring cybersecurity, big data management, and analytics along with visualization. This facilitates faster decision-making and governance.
In addition, we offer our industry-proven consulting services that enable enterprises to become more sustainable, marketplace-driven, and customer-centric in their outlook. The next decade promises exciting advancements as enterprises embrace cognitive digital transformation. Our next-gen technologies portfolio is designed to provide comprehensive support for enterprises. Join us to experience the future today.
As the world progresses towards a green and more culturally inclusive future, sustainability and corporate responsibility are becoming increasingly important. ESG investing is exponentially gaining popularity as carbon neutrality, sustainable practices and renewable energy, and gender diversity and inclusivity become integral to business strategy. Energy management is one of those aspects crucial to operational efficiency. By adopting cleaner energy alternatives and energy-efficient technology, companies can operate sustainably and reduce their environmental impact. With sustainability becoming an imperative, organizations must prioritize transparency and accountability toward their green initiatives. The challenge of constantly changing regulations remains. ESG reporting is essential in solving that. iDocSustain, our unique reporting platform, allows companies to track their ESG performance metrics and navigate them easily to achieve ESG goals and drive positive results while staying compliant. While setting ambitious ESG goals is important, it is vital that potential risks be identified and analyzed.
We understand that ESG risks are challenging to monitor. Our risk assessment solution is a unified platform for enterprise risk management that helps identify risk hotspots for better control and mitigation. As financial institutions prepare to achieve net zero commitments by mobilizing funds towards green projects, they face significant hurdles. We designed a platform that assists banks and financial institutions to streamline the process of issuing a green loan and integrate ESG metrics into the loan evaluation process, and enables tracking and redirection of green funding to meet sustainability goals. At Tech Mahindra, we aim to provide technology solutions for the energy alternatives for the future. We believe in finding harmony between sustainability and business health to create a lasting and positive impact on our planet.
Engineering is everywhere, creating new possibilities for making our world smart, secure, and connected. The future is filled with exciting possibilities, engineering helps us transform these plans and turn visions into reality. At Tech Mahindra Engineering Services, we're driven by this mission. For over 25 years, our engineering DNA has pushed us to dream big and turn our customers' ideas into reality. We partner with companies that share our vision, and together, we're engineering your Next Now. Cerium Systems to offer integrated circuit and embedded software design services. Pininfarina and Bio to deliver design engineering and digital transformation services. Sumitomo, a Japanese leader in automotive engineering services. From medical equipment to automobiles, industries to cities, we are engineering a future for everyone. Automotive: passenger car design and development for a large global OEM, enabling ADAS and electrification solutions for multiple global automotive tier ones.
Pharmaceuticals: real-time monitoring of vaccine production. 5G: fast-track the launch of a 5G MiFi device over two of North America's largest carrier networks. Aviation: safer and reliable air travel with our aircraft health management solution. Retail: develop the new resilient anti-fragile supply chain for a global industrial major. Smart city: transform cities across APAC into smart cities. What drives us to achieve the impossible? It is our relentless pursuit of perfection in everything we do and the combination of three essential qualities in our DNA: accelerate, invent, transform. The future is what we build for ourselves. It's time to engineer your NxT.NOW.
Be it life or business, there is surely one thing worth chasing: growth, 'cause that's how we're all wired. Growth can happen in many ways, but for maximum growth, there are a few certain ways. We call them the 3 facets of growth: simplification, transformation, experienceification. We help you simplify growth by modernizing systems and platforms, accelerating time to market, and monetizing 5G with Digitech solutions. We help you experience growth by uplifting customer experience with personalization and loyalty, deploying AI and machine learning, and boosting revenues with Martech solutions. We help you transform growth by building highly scalable financial offerings and monetizing data with Fintech solutions. At Comviva, with our ideas ignited culture called Ideology, our deep understanding of business and consumer needs for over 20 years, our experience working with top global telcos and other enterprises.
We help you simplify tech complexities into growth, simplifying the entire life cycle with just one motto: maximize growth for you. Comviva Growth Maximized Complexity Simplified.
In today's hyper-connected world, businesses looking to innovate and gain a competitive edge must harness the power of the cloud.
As customers are moving from digital transformation to a more cognitive approach with ecosystem stakeholders, we're here to develop solutions for them that enable creative governance. How? We assist enterprises in developing innovative business models. We do this by leveraging AI, platforms, and enterprise applications. We provide businesses with relevant insights. We enable businesses to create immersive experiences with our innovative Metaverse offerings. We create a leaner core using APIs and enterprise applications to connect with channel partners. By facilitating cloud transformation for enterprises, we boost scalability and speed up product rollout in the marketplace. We simplify our portfolio with business platforms, SaaS services, and ADMS NXT.NOW for easy navigation. All of this allows enterprises to seemingly integrate applications, infrastructure, and undertake cloud migration, ensuring cybersecurity, big data management, and analytics, along with visualization. This facilitates faster decision-making and governance.
We offer our industry-proven consulting services that enable enterprises to become more sustainable, marketplace-driven, and customer-centric in their outlook. The next decade promises exciting advancements as enterprises embrace cognitive digital transformation.
Our next-gen technologies portfolio is designed to provide comprehensive support for enterprises. Join us to experience the future today.
As the world progresses towards a green and more culturally inclusive future, sustainability and corporate responsibility are becoming increasingly important. ESG investing is exponentially gaining popularity as carbon neutrality, sustainable practices, renewable energy, and gender diversity and inclusivity become integral to business strategy. Energy management is one of those aspects crucial to operational efficiency. By adopting cleaner energy alternatives and energy-efficient technology, companies can operate sustainably and reduce their environmental impact. With sustainability becoming imperative, organizations must prioritize transparency, accountability toward their green initiatives. The challenge of constantly changing regulations remains. ESG reporting is essential in solving that. iDocSustain, our unique reporting platform, allows companies to track their ESG performance metrics and navigate them easily to achieve ESG goals and drive positive results while staying compliant. Setting ambitious ESG goals is important, it is vital that potential risks be identified and analyzed.
We understand that ESG risks are challenging to monitor. Our risk assessment solution is a unified platform for enterprise risk management that helps identify risk hotspots for better control and mitigation. As financial institutions prepare to achieve net zero commitments by mobilizing funds towards green projects, they face significant hurdles. We designed a platform that assists banks and financial institutions to streamline the process of issuing a green loan and integrate ESG metrics into the loan evaluation process and enables tracking and redirection of green funding to meet sustainability goals. At Tech Mahindra, we aim to provide technology solutions for the energy alternatives for the future. We believe in finding harmony between sustainability and business health to create a lasting and positive impact on our planet.
Engineering is everywhere, creating new possibilities for making our world smart, secure, and connected. The future is filled with exciting possibilities. Engineering helps us transform these plans and turn visions into reality. At Tech Mahindra Engineering Services, we're driven by this mission. For over 25 years, our engineering DNA has pushed us to dream big and turn our customers' ideas into reality. We've partnered with companies that share our vision. Together, we're engineering your next now. Cerium Systems to offer integrated circuit and embedded software design services. Pininfarina and Bio to deliver design engineering and digital transformation services. Sumitomo, a Japanese leader in automotive engineering services. From medical equipment to automobiles, industries to cities, we are engineering a future for everyone. Automotive. Passenger car design and development for a large global OEM, enabling ADAS and electrification solutions for multiple global automotive tier ones. Pharmaceuticals.
Real-time monitoring of vaccine production. 5G. Fast-track the launch of a 5G MiFi device over 2 of North America's largest carrier networks.
Aviation. Safer and reliable air travel with our aircraft health management solution. Retail. Develop a new resilient anti-fragile supply chain for a global industrial major. Smart cities. Transform cities across APAC into smart cities. What drives us to achieve the impossible? It is our relentless pursuit of perfection in everything we do and the combination of three essential qualities in our DNA. Accelerate, invent, transform. The future is what we build for ourselves. It's time to engineer your next now. Be it life or business, there is surely one thing worth chasing: growth, 'cause that's how we're all wired. Growth can happen in many ways, but for maximum growth, there are a few certain ways. We call them the three facets of growth: simplification, transformation, experienceification. We help you simplify growth by modernizing systems and platforms, accelerating time to market, and monetizing 5G with Digitech solutions.
We help you experience growth by uplifting customer experience with personalization and loyalty, deploying AI and machine learning, and boosting revenues with MarTech solutions. We help you transform growth by building highly scalable financial ops and monetizing data with fintech solutions. At Comviva, with our ideas ignited culture called Ideology, our deep understanding of business and consumer needs for over 20 years, our experience working with top global telcos and other enterprises, we help you simplify tech complexities into growth, simplifying the entire life cycle with just one motto: maximize growth for you. Comviva growth maximized, simplified. In today's hyper-connected world, businesses looking to innovate and gain a competitive edge must harness the power of the cloud. Digital adoption is taking a quantum leap, urging CXOs to realign existing cloud strategies to attain faster time-to-market and foster innovation.
To achieve this, leading analyst firms suggest partnering with strategic cloud services providers to attain greater business agility, boost revenue impact services, and create deeper, more meaningful links between your IT and business processes so you can make intelligent choices on cloud. Tech Mahindra Cloud BlazeTech practices cloud adoption and legacy modernization, helping you become lean, agile, and cost-efficient. An integrated platform for end-to-end optimization, Cloud BlazeTech combines assessment, consulting, migration, and managed services, supports value transformation with an integrated cloud migration factory, automation, and a self-healing governance model helping enterprises accelerate to a cloud-native world. This unified platform is uncompromising in performance and security and covers all phases of cloud journey.
Whether it is a traditional lift and shift, cloud-native engineering and modernization, or vertical cloud solution leading to new revenue streams, CloudBlaze Tech helps businesses harness ready-to-deploy solutions to power your hybrid cloud environment, streamline implementation with artificial intelligence and machine learning capabilities, and derive deeper insights with proactive and predictive analytics so they can accelerate time to value with our modular design framework, improve migration time by 30%, and save up to 20% costs on tools and technologies by integrating with existing infrastructure. Powered by our advanced engineering capabilities, hyperscaler integration and partner ecosystems across industries and our promise of unlocking the next in cloud services and delivering it now. Shift gears on innovation and blaze the trail toward your digital future with Tech Mahindra CloudBlaze Tech. The drive to build a sustainable future is within us and all around us.
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This is a time of rapid change, businesses know that going digital is the only way to stay ahead and stay competitive. Even now, less than 30% of digital transformations are successful. The biggest challenge is fragmentation in the market, leading to transformation in silos with solutions and strategies that are not aligned and results that can't match expectations. At Tech Mahindra Business Process Services, we are all about breaking the silos. Ours is a holistic approach to enterprise transformation, going all the way from hiring the right talent, training them to be at their best, to performance optimization and management, and ensuring operational excellence. Driven by data, delivered with complete transparency to bring you closer to your business objectives. Think industry-leading CX solutions.
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As customers are moving from digital transformation to a more cognitive approach with ecosystem stakeholders, we are here to... How? We assist enterprises in developing innovative business models. We do this by leveraging AI platforms and enterprise applications. We provide businesses with relevant insights. We enable businesses to create immersive experiences with our innovative Metaverse offerings. We create a leaner core using APIs and enterprise applications to connect with channel partners. By facilitating cloud transformation for enterprises, we boost scalability and speed up product rollout in the marketplace. We simplify our portfolio with business platforms, SaaS services, and ADMS NXT.NOW for easy navigation. All of this allows enterprises to seemingly integrate applications, infrastructure, and undertake cloud migration, ensuring cybersecurity, big data management, and analytics, along with visualization. This facilitates faster decision-making and governance.
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As the world progresses towards a green and more culturally inclusive future, sustainability and corporate responsibility are becoming increasingly important. ESG investing is exponentially gaining popularity as carbon neutrality, sustainable practices, renewable energy, and gender diversity and inclusivity become integral to business strategy. Energy management is one of those aspects crucial to operational efficiency. By adopting cleaner energy alternatives and energy-efficient technology, companies can operate sustainably and reduce their environmental impact. With sustainability becoming an imperative, organizations must prioritize transparency and accountability toward their green initiatives. The challenge of constantly changing regulations remains. ESG reporting is essential in solving that. iDocSustain, our unique reporting platform, allows companies to track their ESG performance metrics and navigate them easily to achieve ESG goals and drive positive results while staying compliant. While setting ambitious ESG goals is important, it is vital that potential risks be identified and analyzed.
We understand that ESG risks are challenging to monitor. Our risk assessment solution is a unified platform for enterprise risk managers that helps identify risk hotspots for better control and mitigation. As financial institutions prepare to achieve net zero commitments by mobilizing funds towards green projects, they face significant hurdles. We designed a platform that assists banks and financial institutions to streamline the process of issuing a green loan and integrate ESG metrics into the loan evaluation process, and enables tracking and redirection of green funding to meet sustainability goals. At Tech Mahindra, we aim to provide technology solutions for the energy alternatives for the future. We believe in finding harmony between sustainability and business health to create a lasting and positive impact on our planet.
Welcome back once again to the post-lunch session, which usually is a little difficult session because of the food that we've eaten, and I hope all of you have eaten as well. Those watching us online, hope you managed to grab your lunches as well. Yes, while the sessions normally are difficult, I promise you today's session is gonna be different, because what they're gonna be talking about is certainly gonna keep you all engaged, excited, and, yes, hopefully enthralled. Five letters we've heard a lot today, C-E-C-E-S. We've heard a lot about them, right? Now, our next panel is gonna demystify these words. Shilpa Dhavale, our Head of India Sales, is gonna lead the moderation. Requesting Shilpa to take over.
Thank you, Vrinda. Good afternoon. I know this is the post-lunch session, as Vrinda said, I promise that everyone sitting here on the stage is going to make it very insightful and interesting. I'm Shilpa Dhavale, Head of Sales, India, it's my pleasure to welcome you to this wonderful panel discussion on Tech M's investments on emerging technologies. It's my pleasure to also welcome the gentlemen who are sitting on the stage. Birendra Sen, Business Head, BPS, onto my left. Manish Mangal, Global Business Head, 5G and NS. Kunal Purohit, Chief Digital Services Officer. Mark Allardice, Global Chief Creative Officer, BORN and XDS. Sandeep Chandna, Chief Sustainability Officer.
Before we understand more about each of these emerging technologies and the investments in them, let us go around the panel to get some expert insights on the markets that they all belong to, their respective domains and the markets. Let us start with Mark. If you could, Mark, share as part of the XDS group, what are the emerging trends that you think we are setting in 2023? Why will understanding that play a very important role for us, for our growth?
Thanks, Shilpa. I think one of the things we've seen or happening to evolve is CX is really evolving to what we say is human-centered, purpose-driven experiences. This is where I think during the pandemic, we saw that our clients and businesses have essentially. You know, they've had to focus on suppliers, they've had to focus on employees. It's not just been customers that they've had to look for. I think this is where, for us, it's vital that we really understand the data to really make informed decisions with that data to create experiences. You know, what are we building? How is that data supporting it?
I think it's definitely a trend that we'll see in terms of, I guess, yeah, more human-centric, you know, designing for the human, less is more. I think simplifying some of the, I guess, quite, you know, challenging processes or apps or websites. I think you really have to think about the human at the end of the day that's using it. I think the next one is what we call hyper-personalization. This is essentially where a lot of brands, and again, especially during COVID, they wanted to allow certain things that would happen either in store or in a car or automotive showroom and allow customers to configure these.
It meant that, you know, products were actually changing in terms of manufacturing so that a customer could go onto a site, they could essentially choose their color, they could choose the dial of a watch, for example. They could lay out the interior for a car, for example. I think more and more, I think, you know, consumers, you know, they want to be unique, and they want to have that ability to adapt and change, and, you know, create something for them themselves. Another piece is we do a lot more and, you know, as an agency or BORN XDS, an important part for us is actually the storytelling.
As part of that, if you're, you know, buying a product again that you might do in store, for example, you know, where a sales associate may explain the product, explain the car and the values of that, it's very hard online. This is where we're creating content that's educating the customer, that's really surfaced at the right time to enable them to drive conversion and go through their site. Similar with immersive journeys. You know, I think Apple do a very good job when they launch a product, for example, of taking you from that email through this, you know, beautiful experience online as you're going through the site. I think more and more of our clients and customers, they're wanting to do something similar.
You know, you should have that surprise and delight as you're going through a customer. Then the last one is data science and insights. You know, data has become key for us as a business to really transform and make informed decisions with that data. It can make a huge difference. I'll touch on upon a couple of case studies where we've, you know, taken that data and really analyzed it and made a huge difference for that client. Here's an example for a large US manufacturer where they were essentially marketing to a very much male dominated market. Through the data, we actually uncovered that actually one of the key influencers was women.
It meant that we could actually change their whole marketing strategy, change, all of the content that went through. This made a huge difference for them because essentially it's increasing revenue from just that key piece of data that they never thought about or had never analyzed before. The next one, very similarly, this is quite a famous, luxury skincare brand, predominantly marketed again to women. What they really missed and hadn't done throughout their online and digital journey is really thought about the male customer, the gifter. I mean, this is a really expensive product, you know, even, you know, $1,000 for a cream.
You know, the fact that you can actually make so much revenue from someone gifting a particular product, and then we are able to actually change the whole architecture, the structure, everything from navigation to, you know, to really enable that male category, that male segment that they'd never really thought about before. They provided us loads of obviously research data, but it was only through the content that we discovered it. Thank you.
Great. The luxury skincare brand does seem very interesting to me, of course. Moving on, Kunal, over to you. What are your views on the changing trends in the digital services, and how do you think that is gonna be in terms of the market that we have?
Sure. Absolutely. You know, I think my answer manifests itself through the many demo showcases that you very passionately participated in the last couple of hours. You know, thank you for your time, inputs, you know, feedback on all the demos that you saw. I think we have over the last year, we have written significant amount of new code to create new solutions. You know, as an example, 1.6 million lines of new code written, which is 3 times more than what we have written in the last two years before that. We have got inputs from market.
We've took inputs from customers as part of the customer advisory board that ensured that the solutions that we are creating enables them to transform and create business outcomes rather than solutions which are not going into production environment. That's the sum and substance of where we are investing significantly. Many of those examples you saw in those demos. Essentially a few you know, summary items are on the large cloud opportunity, we are not just helping enterprises, you know, migrate, modernize, and monetize, you know, across the cloud stack, but we are also moving into industry cloud solutions.
Which means that we are able to bring technology components from discrete technology together to create a single, you know, a business outcome for customer in terms of either great customer experience, as Mark mentioned, or significant cost takeouts. We have also demonstrated a BlazeTech suite of offerings which also help customers manage costs better. Our FinOptico solution is, perhaps, you know, one of the leading-edge solutions in that domain. That's on the cloud side. On AI, data AI and generative AI, quite a bit of discussion has happened since morning. A few things. We have created our own suite of offerings called Amplify that help deliver amplified business outcomes for customers.
Many customers have said that they, you know, they would like to move away from creating business creating models to making sure that they are, you know, managed, deployed at an enterprise-grade level. Therefore, our platforms like DataMime, GigWorks, helps create democratization of AI across the enterprise and scale AI. On the generative AI side, we have created a platform that helps you not just understand the power of what generative AI could bring into the enterprise, but also experiment, create use cases and, you know, across aspects of document, video, image, you know, and explore business cases that can improve productivity from 20%-40%. I'm sure you would have seen some of those demos as well, right? The third and more critical one is cybersecurity.
We have moved away from looking at cybersecurity as an enterprise security to focusing as the cyber, you know, cybersecurity market broadly. You know, focusing on threat intel, response to cyberattacks, and also the enterprise side with, you know, significant new solutions. CP mentioned the partnership scale-up. This is one area where we have significantly scaled our solutions with our partners and have been able to go to market significantly faster, creating higher, you know, value. Creating secure enterprises, enabling enterprises to move to the DevSecOps model. Last but not the least, which is the emerging technologies, where we are significantly investing in, you know, technologies like metaverse, blockchain, quantum. We have a lab that enables enterprises to, you know, create use cases and then deploy them for scale in the enterprise.
I think one example that we saw outside was how a large real estate company is using metaverse to demonstrate a sample flat in the metaverse so that buyers don't have to go to see a physical sample flat. That demonstrate how the business model has changed. They can help potential buyers take decisions faster, compared to, you know, actually going and seeing a physical sample flat. That's an example of where sorry, leading-edge technologies are coming together as, for us for, solutions.
Great. That's a wide range of offerings that we have under this bucket, Kunal. Thank you so much for this. Moving on, Biren, BPS has been a huge success story for us this year, and as it continues to grow. What would be the market trends or the market behavior that you are actually anticipating, and how is it gonna impact our growth for the coming years?
Sure, Shilpa. Thank you. I think that's a consistent theme you'll see across all the sections where we are betting big on CX. Even for the BPS business, I think, you know, we lead with CX, and so continue to demonstrate leadership there. If you look at analyst reports, et cetera, we're positioned as leaders. What we've done through acquisitions and through our internal investments is stitched an end-to-end capability right from design of new CX journeys to, you know, if you have one, how do you transform that for better outcomes as well as, you know, operating them end to end in a machine-first way so that, you know, it's not just about putting more and more people to run your operations but using technology in a big way.
We'll continue to do that investment. That business is almost half of our portfolio right now. What we've done very smartly is while CX is growing ahead of the industry, we've diversified our portfolio. We've done that in a very, very smart way. One, follow the money, so you know, technologies like Metaverse and now generative AI, for example, we're going after the picks and shovels that are required to make Metaverse happen. That's a lot of human in the loop kind of work that we are picking up along with, you know, technology-enabled business.
Similarly, you know, not many people know that, you know, almost 10% of the portfolio is actually consulting and CX tech implementation for our customers, which is extremely important as customers move their contact center and customer operations technology onto the cloud. Finally, I think what customers are looking for more of is, you know, a partner like us having a skin in the game when it comes to business outcomes, and that's been one of the key drivers for us, both in terms of, you know, de-risking the customer's movement from one supplier to the other, but at the same time, giving us opportunity to actually earn more margin as we deliver better outcomes for customers. I think those trends will continue.
We, you know, reasonably confident that we'll be ahead of industry growth in the coming years.
Great. Thank you. Thanks for that, Biren. I am for sure looking forward to leveraging all our BPS offerings as we focus on our India market and Indian customers. We'll keep coming to you for that. Over to you, Manish. You're just back from our Mobile World Congress, at Barcelona, and really keen to know your thoughts on our, on the impact of 5G, on the markets, on our business and growth strategy, as we move forward and head into the new year.
Thank you. Thank you, Shilpa. Good afternoon, everyone. Let me share my insights from the lens of CXOs, whether it's a CFO, CNO or a CTO. We have met with more than 300 of them in the last six months. Fundamentally, they bring down three priorities for themselves, and this is what they are challenging us to do. This is what they are focusing internally as well. Number 1 is simplify. Simplify operations. There is a tremendous amount of complexity that has been built into the network over the period of time. Hence, if you really want to scale the future, scale new applications, enable the monetization, it's very important to simplify the network and its operations today.
That's number one priority, help simplify the network operations, take the cost out of that so that we have the ability to invest. Second thing is modernize the tech stack. While we continue to look for ways to simplify the entire tech stack from 5G, which is not just about a radio or a core network technology anymore, it's also about how those networks are managed. It's also about how digital stack is created on top of it to enable the experience for the customer. 5G is really an entire stack from the bottom to the customer experience. Hence, modernization of the full stack is a very, very important priority for everybody. The third one is how do I monetize the investments that I'm making in 5G?
That's been number one theme across MWC recently, which basically suggests that while I continue to invest in 5G to create better customer experience for my consumers, how do I take 5G investments and generate new revenue opportunities towards enterprises? We are very excited about these three themes because these three themes have been at the center of how we have been looking at our business as well, which means that what can we do to help take the network operations, build in AI tools to drive less people-centric operations, more automation and tool-centric operations? How do we help them bring 5G to life, not only just to build a network, but also build the kind of use cases that allow them to monetize and take it to the enterprises? You have seen some of that experience center outside.
There is a whole lot behind that as well. As I look at, again, Shilpa, you asked the question: What does it mean? What they're looking to do is every CXO is looking to unlock the value of their network asset, which is there. They have made tremendous amount of investments by simplifying, modernizing, and monetizing. We are right in the center of those three initiatives by them.
Wonderful, Manish. I think the three themes that you talked about absolutely resonate with what we've been hearing has been happening at the Mobile World Congress as well, and what everyone has been talking about. That's great to know. Sandeep, over to you. What do you see as the market potential for our ESG and sustainability solutions? How are customers really reacting to all of this, and how is the market looking like?
Yeah, thanks, Shilpa, very good afternoon, everyone. Shilpa, before I go to your question and answer that, see, there are two or three facts which are really coming out. One is there was a perception that we would never see a climate change in our lifetime, so there was no urgency which was seen. Your city, Pune, if you remember 18th of October last year, you saw the floods. We were discussing that. The place where I come from, Gurgaon or, you know, Delhi, we saw 49 degrees or 50 degrees around. Imagine if it is around 50, 55. What would be the things? The perception across has changed that climate change has to be part of the board discussions, have to be part in terms of urgency, what the companies are doing. Same is happening in terms of regulations.
We have seen EU regulations coming in, SFDR. We have seen Indian regulation. Most of you would be aware that BRSR is now very important for all of us. While as a Tech Mahindra, as a chief sustainability officer, we were doing a lot of jobs internally, a lot of stuff internally, which was recognized by the world. Most of our customers came back and said that whatever you're doing, Tech Mahindra, whatever you're doing, can you do that for us? That's the time when we thought that let's get into this. We saw an opportunity. We simplified our offerings, and on 22nd September 2022, we launched our offerings. This is specifically on ESG. Simple. No, no complications here. We said, first step is baselining. We have put up a consulting offering there.
Saying that we will baseline, help the customers do their roadmap. Now, when you have the roadmaps, you would also look at what are the solutions that will help customers meet those targets in the roadmap. It would be net zero, it would be social aspects, it will be governance aspects. We have put up IoT-based solutions like energy management. We have put renewable energy management systems. Second bucket, which you are looking here is the solutions which are helping customers meet their targets. Norms getting very difficult, reporting becoming complex day by day. We said Tech Mahindra is the only company in the world which is reporting on 4 or 5 frameworks. That is TCFD, GRI, SASB, SDGs, IR. We said, let's leverage that. We said we'll help our customers even with the reporting.
That's a last offering that we said. The deals have started flowing in. We have started working for a leading American bank. We are working for a government railway company that's for energy management. Like this, lot of these deals are really coming in on a regular basis. As I see the market potential, which is there on the, which is almost, I think, say for the consulting itself, about $43.2 by 2026. The last note, the very important aspect is around sustainable finance. That is the number which world is really looking at today. That is looking at almost about $23,000 billion by 2030. That's a number what we are really looking as an opportunity, and we are all geared up for it.
Thank you, Sandeep. The market potential does look huge, and I think we certainly have to have sustainability in every discussion or every important decision that we are gonna take. Thank you. Thank you for that. Let's move ahead now to understand the investments that we are really looking at in each respective domain that you've talked about and how it'll really impact the go-forward journey of the emerging technologies that we've just talked about. Starting with you, Kunal, any insight on the key areas where we are looking to invest under your wide array of offerings and solutions, and how are we creating a differentiation in the digital business as per that?
Sure. Sure, Shilpa. I think that defined the challenge quite well, that when you have a wide array of offerings and solutions that you take to a customer, you also need to ensure that in the delivery or execution side, we kind of bring it together to create simplicity of execution, as Manish mentioned, and therefore the customer can then, you know, have enterprise agility. Therefore, our investments, deep investments in building solutions is across two axes. Axis number one is what we, you know, discussed a few minutes back, which is solutions that tackle a business problem, whether it is using AI to solve a certain amount of business model challenges or using cybersecurity solutions to make enterprise more secure.
Axis number two, however, is how do we bring all of these together in a delivery framework, in an execution framework that helps enterprises not just reimagine their new business processes to delivering them at scale, managing platforms at scale, and not only that, re-removing redundancy and redundant processes to cut costs, make IT technology more leaner for the enterprise. We created this framework which helps us look at enterprises and opportunities across two axes. Number one is the ability of the customer to be innovative versus looking at it from a standardization of processes perspective. Is an enterprise more innovative, more agile? How frequently are they looking at new ideas versus are they looking at scale, standardization, globalization? The second axis was how frequently do they, you know, release products to market?
Are they doing it every week, every fortnight, every month versus, you know, they're looking at a quarterly, six-monthly release. Based on that, we've created solutions that enable them to either do fast prototyping through our Makers Lab, that helps them form a view of what's coming new, what could be tested. It doesn't necessarily go into production, but it helps them understand the power of new technology to solve complex problems. From there on, you kind of build, you know, agile platforms to help, you know, business processes or enterprise scalably. Last but not the least, the ability to merge IT, merge redundant processes and make IT more leaner through automation, through, you know, better quality control and things like that. This is bringing all of this together.
It also manifests itself in training, you know, our people, our engineers to understand what phase of the application or platform life cycle, development cycle to participate in and therefore, you know, what's the approach to emphasizing on the customer problem statement. This helped us, you know, improve customer satisfaction levels by 20% year-on-year. Gives us more enterprise agility, and therefore we continue to invest in number of solutions because of the framework to deliver, tools to deliver faster and, you know, enable better collaboration across the enterprise, the squads and, the teams that work together.
Great. Thank you. Thank you, Kunal. This seems to be the go forward framework that we will just continue to execute. Biren, over to you. Would you like to share some insights on the investments that you're looking to do as you continue the wonderful success that's been, you know, witnessing?
Yeah, sure, Shilpa. I think the journey continues in terms of diversification. Earlier in the day, I mentioned I've got three verticals of scale above a $100 million run rate. two are, two which, you know, if you look at the addressable market, they are almost 40% of the BPO addressable market, which is banking, financial services and healthcare. I'm pleased to, you know, share that we've over this fiscal, we've won a large deal in each one of those verticals. I'm going to continue to diversify and invest in those. At the same time, one of the key opportunities we are seeing is productization of services.
The same service line being provided to multiple verticals, and we are creating products out of that so that we can deploy it at scale, at speed, as well as deliver it efficiently for customers with much more predictable outcomes, right. Generative AI, I think, I see two big opportunities for us, and that has already hit, you know, our pipeline as well as, you know, what we are converting already. One is that all the partners on the conversation side, conversation tech side, are adopting large language models. We help our customers implement those platforms and so, that opportunity is coming as more and more customers adopt large language models. ChatGPT could be one of them. There are multiple others.
The second one is, you know, with the excitement around ChatGPT, all generative AI companies actually have sped up investments as well as, you know, their targets for go-to market. That means the bots need to be trained quite a lot. They need to be trained, they need to be moderated, they need to be safe to consume, they need to give the right answers. That's a human in the loop process, which again, is already a part of our operation and growing fairly fast. I just want to share that we've been doing that for two years, but just that the acceleration in the market is quite huge and we want to bank in on that.
Data operations, you know, I touched a little bit about that, but say for example, you know, whether it is building the Metaverse or launching new products or services, data from users is becoming a very key ingredient to how do enterprises improve their services and products. We have a large data practice and I'm aiming to actually, you know, make sure that we lead with that, particularly with customers on the West Coast. Finally, Manish spoke about Yantra.AI. That's just one of the examples of the BPAS kind of solutions that we are taking to market where we're first putting a platform or machine to solve a business problem, which is, you know, business outcomes for customers using machines.
If there is a service at the end of that, that is offered as a bundle on a consumption basis to our customers. You'll see more of that coming in, and that's where the investments are going. I think the general theme, even in the BPS business, is about how do we generate non-linearity and not link it to the number of people we have, but at the same time go after picks and shovels and really use speed as a differentiator because that's what customers are looking for. Shilpa, hopefully that answers your question.
That's absolutely interesting. Acceleration and speed seems to be the mantra after the Yantra is what I can say. Great. Thank you. Thank you, Biren. Sandeep, over to you. If you can share, you did address the markets that we are looking at from sustainability perspective. What kind of investments are we really looking at when we continue to build the momentum around this?
What we exactly did was that we looked at what could be the future aspects of ESG. Okay? I mentioned about SFDR, the EU regulations becoming very mandated. BRSR, very important. Most of the companies in India are still looking for platforms or how the data would be collated, how the data will be reported. In fact, most of the CFOs and specifically the company secretaries are the ones who are really getting impacted by this one. For that, what we thought was a platform like iSustain, which Manish also mentioned in his presentation today. That we thought was a major one. Now, that platform is gonna capture the ESG data
Do the reporting, it will be used for net zero data modeling, it will be used for sensitivity analysis, it will be used for scenario planning. It will be an end-to-end tool for ESG for a particular company. The second other aspect, which was really coming from a regulatory perspective, is around climate risks. There's a framework called TCFD, Task Force on Climate-related Disclosures. The risks which are coming for a company, those have to be disclosed for a company in a way where the strategy will become an important aspect. What we have done is that we have thought this well through, and this i.Riskman, which we'll be launching in next two quarters, would look at the ESG aspect and how it will impact the strategy of a company.
This will not only look at risks, it will also see that what are the probability of the risk, how those will be mitigated, and also what will be the financial impacts of those risks. I just mentioned in the start that the addressable market for sustainable finance is huge. Today, the platforms which are available for monitoring them are negligible or are not there. We have started that development, and that should be ready by next and by this year-end quarter. This platform will help the banks, the leading finance agencies to do the end-to-end monitoring of green finance. That is the most important aspect. Before I end, Shilpa, what I'm really gonna mention here is that today's digital, within next two years, is gonna be the ESG. Today, we are speaking about digital.
In next two years, you'll be speaking about ESG. Thank you.
Great. That was quite insightful and almost like an eye-opener. Making robust platforms is gonna be the way forward, and that's where the investment is gonna be, Sandeep, looks like. Thank you. Mark, over to you, if you want to share the experiences around XDS that are gonna be the go forward and the markets around it, and also if there are any investments or our focus that we will be doing.
Sure. Thanks, Shilpa. I think, from our side, I actually wanted to show some examples actually of our work. I think it was mentioned earlier this morning in terms of digital, sorry, physical to digital. I think this example here is where we've actually taken from a quite a famous luxury brand, and they wanted to take an experience that was in store that they've been doing for over 100 years. It was essentially for someone to go in and choose and buy an engagement ring. They could choose the metals, the material. They could learn about diamonds and the educational part, which is the four Cs that make up a diamond, which is cut and clarity.
I think what we did here is take that physical experience, and we recreated this online. I think, you know, they really push us as a business or BORN XDS to be innovative as much as we can. I think this really allowed us to create, yeah, this amazing, you know, experience for someone to go in, select, you know, choose and really enjoy it. I think the next one here is again where I talked a bit earlier about hyper-personalization. This is an example where, you know, a lot of brands now are actually having to change their product in terms of manufacturing. You can see here, you can select, you know, typical colors. It could be a strap.
Here, we're actually taking that next level, which is the hyper-personalization part, where you can actually go into engraving. It means that you can really do personalization, I think, online in a really lovely, engaging way that you would have as you walked into the store. I think things like you can see here in terms of the imagery and the rendering, you know, this is the content. You know, five, 10 years ago, you couldn't do this. I think now we're seeing technology where we can recreate products and imagery in such a, you know, an immersive and informative way. Okay.
That's wonderful. The personalization does seem very interesting and almost the day-to-day products that we are gonna use are gonna be personalized, looks like, going forward. Thank you. Lastly, Manish, over to you to really understand the kind of investments given our 5G journey. The market where we are headed, would be great to know what kind of investments are we looking at.
Certainly, Shilpa. I discussed earlier on the three priorities for the CxOs and what we are doing. We invest in three things as well. We invest in human capital, we invest in partnerships, and we invest in platforms that makes life easier and solutions available for our customers. We are directing our investments into solving these three priorities for the customers. In simplifying, we are really looking to help them shut down the legacy that they have been created for the long period of time. We still have a legacy systems that are sitting into infrastructures that actually need to get out and make way for operating life cycle to be much simpler. That's one of the areas where we focus on.
Second area is really around operations, where NOC, SOC, plan, design, build the entire life cycle of the network to really make that automation-centric and less people-centric, so that the agility of building new technology, what we are calling is the ideation to consumption from a customer perspective. An idea gets created somewhere, but by the time it gets consumed by the customer or the end consumer, we need to reduce and shrink that life cycle from 3 years, typically, which is what the telco is, to few months. That's what we really focus on when we talk about simplifying. Modernization is really bringing in the new technologies. You know, Open RAN.
Cloudification with a lot of cloud partners, bringing in the predictive AI and more tech stack that actually drives the new technology stack in the industry. We are investing in that area to create that capability to help our customers rapidly modernize the tech stack. The third is really modernization. Sorry, monetization, which take these capabilities of 5G and enable variety of industry-specific use cases so that the new industries can be created, new revenue opportunities can be created. We find ourselves at the front and center of that world because of our expertise, both with enterprises where we are very heavily engaged in their digital and business transformation, and at the same time we are engaged in their network transformation.
Bringing IT and OT together, we find ourselves in a very sweet spot to help our customers monetize, which are the CSPs as well as enterprises. I think if you look at how we are investing, we have invested into a platform called netOps.ai, which really enables the end-to-end life cycle of a network from plan, design, build, operate, maintain and run it on a day-to-day basis, make it very easy, nimble, so that it not only drives the cost out of a network, but also it helps take that smaller footprint, more nimble, more agile network towards the enterprises, give them a Wi-Fi like experience, but build an open architecture on which variety of new use cases can be created. That's what we are excited about.
We believe we have the most comprehensive set of offerings in the market, this is what we've been working on. The growth that we have seen this year and the last couple of years is a testimony of our investments into these offerings have been in the right place, we continue to look forward to do that in this as well.
Great. Great. Thank you so much, Manish, for giving these wonderful insights on investments, one of our key areas of course. This brings an end to our panel discussion here today, and it was absolutely interesting and thrilling to know the key areas that the market is moving towards, as well as the investments that we are really looking to do as we move forward in our journey for Rise and beyond. I hope all of you got a very good insight into the detailing that the gentlemen have presented here, and hope that this gives you a complete understanding of our journey in our emerging technologies beyond now and the next year. Thank you so much.
Thank you.
Thank you.
Time on stage is enough.
Thanks. Thanks, Shilpa and team, for the insightful session. 30 years ago, we could start our journey of Rise only because of the spirit of our people. 3 years ago, we could battle against all odds, again, because the spirit of our people. Some things fortunately never change. Even today, it's the audacious, resilient, optimistic spirit of our people that continue to make us proud and inspire us to rise and go beyond. I now invite Harsh, our Chief People Officer and Head of Marketing, to give us a glimpse of that journey.
Thank you, Vrinda. Thank you. Good afternoon, ladies and gentlemen. It's a pleasure to present to you the way we unleash the power of people. CP started by talking about the six Ps, and I think this is one of the most important ones. Our journey so far has been quite brilliant. If I rewind the year, there were many highs for us, but these three really stand out. The first one is engagement, and we touched a big high at 4.58, whereas previously, the highest score that we ever got was 4.04. Add to it the fact that our internal fulfillment that was really around the 50 mark is now at about 71%. Last quarter, ladies and gentlemen, we finished at about 65%. What did this result in?
Attrition. This is something we are so proud of. Lowest attrition in our peer set at 17.3% last quarter. That is the 12 months annualized, and 14.3% quarterly annualized. This truly is remarkable if you put in perspective that this has been coming down for the last eight quarters. Well, the world recognized our efforts, and it's not these awards that are really important. It's the fact that globally, people realized that we were doing something special. Whether it was creating a preferred workplace, we were the most preferred workplace in Asia. India's most trusted company, great places to work. If you look at diversity and inclusivity, the fact that we were fourth year in a row in the Bloomberg Gender Equality Index, the Avatar Inclusion Champions fourth year in a row.
awards on HR tech. They're special because these include the Stevie and Brandon Hall Awards of the U.S. and many more. The world really recognized how on the people front it was a 360-degree high. Obviously, the question that we are very proud to say is: What makes us different? What is it that clicks for us? There are primarily many things, but I'll talk about 3. The first one, ladies and gentlemen, is our culture. Unlike many other organizations, we have defined our culture in a 1-line statement. There is no ambiguity. There are no PPTs of 350 pages. Our culture is defined as driving positive change, celebrating each moment, and empowering all to rise. Essentially, it means we drive positive change in the lives of our customers and customers' customers.
We have fun, we like to celebrate, and we like to empower people on the ground. This, to me, has been a significant differentiator. The second one is our fundamental belief that while technology is an enabler, moments of truth are always human. At the end, we use technology in HR, in the people function, to deliver what we call a human experience. You've seen facial recognition, you've seen our chatbot, Yuva, in the past, our first marketplace of talent, that is Talex, and our first non-human employee humanoid, Ketu, that I have already shown last year. This time, I'm gonna give you a small glimpse of how we use metaverse for hiring. Incidentally, we've also taken into induction. Just a quick video on the hiring metaverse. Let's go back. Essentially, the idea is how do we use technology?
Sorry, sir, can you put the PPT back? Let me go back. How do we use technology to make a huge difference in a human-to-human interaction? Ladies and gentlemen, the third and the most important differentiator, I would say, is RISE. CP started by talking about RISE. Everybody followed, said, "How do we make RISE come alive?" Whether it is our three tenets of accepting no limits, alternative thinking, and driving positive change. The new refreshed version, which is more out there for the community, which is about rising for a more equal world. It includes climate change, inclusion, ethics. The last panel you heard Sandeep passionately talking about the fact that, you know, you're gonna be talking about climate change a lot more. RISE for be future ready. Tech, increasing the tech quotient is all about customer focus, technology, and innovation.
Finally, RISE to create scale, and all of you have been talking about it. It's about entrepreneurship, scale, and impact. This is truly a single most differentiator that we have. Apart from this, ladies and gentlemen, we also recognize the fact that the world around us is changing, that the future of work is changing. People expect different things. What do they expect? Number one, flexibility. Ladies and gentlemen, mind you, flexibility is not where you work from. It's, you know, it's been misunderstood saying, "Oh, flexibility is work from home and work from office." It's also when you work and how you work. Those choices today are immensely important for talent. It's also about fact that talent today is looking for purposeful and meaningful work. Brands are just not enough. Earlier, you used to join a big brand.
People say, "I want to do meaningful work." Thirdly, holistic well-being is important. Personalized career paths are important. We call it N is equal to 1 in Tech Mahindra, which basically means each individual has a personalized career path, which is so important. The last one is interesting. You know, we've been talking about human-centered experiences. Guess what? Human-centered experiences have moved on to what we call life-centered experiences. Sandeep, you'll be happy to know what life-centered experiences are nothing but inclusion of sustainability. All of that at Tech M helped us to create a very inclusive environment for all. When we started this journey 5 years ago, we said diversity and inclusivity will be a differentiator. Today, I'm proud to say that it has become not only a differentiator in the people function, but also in the business.
We've developed multiple women leaders. If you remember, even CTL mentioned that in his when he was speaking. We introduced many progressive policies. We are very proud to say that in India, the first sexual reassignment benefit has been availed this year, which is a huge step forward for diversity. We have 12 LGBT active communities across the world. We do a lot of hiring on impact sourcing and in BPS, about 90% localization in 23 countries. Our customers love this. It matches with what they want to do. We've got many testimonials. I'm gonna play one of them, which is right here.
Hello, I'm Sarah Venning, I'm Global Chief Digital Officer for Pret A Manger. Tech Mahindra hosted me on a recent visit to India. I had the pleasure of visiting the campuses in both Bangalore and Hyderabad. I was very impressed with the commitment that Tech Mahindra are showing to diversity and inclusion. I met talented people from different backgrounds on the account, in both leadership positions and throughout the account. I'm very supportive of your direction of travel and will be delighted to partner with you on this journey going forward.
Clearly you see that our customers are equally excited about what our journey has been. I started by saying three different things. Internal fulfillment ramped up from 46% to 71%, this has made an incredible difference internally, not only to the fact that we've managed to optimize our costs, but also effectiveness of the fact that we can replace a person much faster. How did we do it? Our internal first initiative in sales, delivery, and program management. Our policies which are progressive, like career acceleration policy, where we actually have a pull factor. Rather than pushing people for upskilling, we now incentivize them to come get upskilled. When they do join an a billing rate which is higher post their upskilling, they get a lot of benefits.
Talex, which is our marketplace of talent, which can match jobs and then push you into the job. The important thing is we realized that just upskilling wasn't enough, because when you upskill somebody, you also have to place that person in the new job, that is what you see here very successfully done. Of course, the whole agility around bench management. We started our Tier-2 cities a while ago. We shared this with you. It's really grown. Last year alone, we added 10,000 associates. Two interesting things happened. One, our customers now said, "We will adopt these Tier-2 cities." We have had various customers adopting these centers and saying, "Please hire for us in these centers." Made a huge difference. Finally, we also said, because there is academia around, we will establish centers of excellence in these cities. In...
These are niche skills. Imagine, while we were struggling for these niche skills earlier, we now go to these Tier Two towns and get the right skill at the right cost. When CP Gurnani started, talked about increasing the quotient of the company, he also talked about the fact that we want to have business transformation. Many, many program that we run around technology and business leadership. Future Shapers, which is with Harvard and MIT for our top management. MALT, which is with Carnegie Mellon. GLCs, which are really a program with fresh graduates, B-schools coming in. We have management training program, AIM, Ascend, which is to build strategy, to build sales and delivery roles. Also we have Tribe, which is really in building technical capability. My final slide. As we look ahead, what is our focus areas?
Our focus areas, ladies and gentlemen, are continuing to building delivery capabilities which are transformational. Our focus area, ladies and gentlemen, is enhancing productivity for the road ahead. A lot of us feel it's gonna be uncertain, and therefore, agility here is going to be key. Creating high-performance culture. Now, how do we do that? We will do from goal setting to measurement to governance. We have introduced many other tools for this. Improvement in fulfillment and using this further to optimize, you know, as we build to our customers. Finally, and most importantly, we continue our focus on retention and dropping attrition, on engagement, which will really continue to make us a differentiated employer of choice. Thank you, ladies and gentlemen, and I leave you with saying that this is coming from the fastest growing brand globally. Thank you very much. Thank you.
Thank you, Harsh. We now move on to our last session for the day. This is where, finally everything culminates. Yeah. Our industry or verticals is how we normally report our numbers. You know, each industry is going through change and transformation in their businesses as they compete to stay relevant. I will now invite Jagdish Mitra, our Chief Strategy Officer and Head of Growth, responsible for the enterprise business, to help talk through how and why we feel our industry service offering will continue to drive growth. Over to you, Jagdish.
Thank you. Thank you, Vrinda. Good afternoon. About 5 hours back, CP started the session for us. He asked the question saying, "How's the josh?" I'm assuming the josh is still very high. Guys?
Yes.
Okay, good. What we'll talk about today is really about bringing together what we are doing in the industry verticals as we report our numbers through the industry verticals. One of the interesting things happened yesterday, as we had a leading analyst here with us. Not an investment analyst, but a business analyst. His comment was more about how we've earned the right now to be able to tell our customers what is the direction they should be taking to be able to be relevant for their future, for their customers and for the needs that their customers have. Today, as we talk through this, we'll primarily talk about what that relevance is, how are we creating this, and what's the TechM way of doing it.
While we talk through that discussion, I think key discussions primarily going to be about what we talked to you last year when we presented our one plus four strategy. Our one plus four strategy is obviously built around the fact that CME, which is our largest vertical, plus the four key focused verticals that we are absolutely keenly investing in and building our growth strategy around. That discussion, as we had committed to you last time, was about scaling our leadership in CME even further. You'll be glad to know as we bring on the panel that the recognition now rounds across the world for a fourth time in a row from Gartner for us to be recognized as the topmost in that quadrant.
The other two we had committed to you was to make them a billion-dollar vertical, the manufacturing and BFSI part, and the other two that we are scaling up as a differentiated play, as you know, is primarily around high tech and healthcare and life sciences. This is our one plus four strategy, focused primarily on it. I'll let the numbers speak for themselves because they talk about the growth, they talk about the recognition, and they also talk about the leadership positions that we have achieved in each of these industries. As we move forward, we talked about our four key or five key areas on which we have built our capability on. Shilpa and the leaders talked about it. All our industry solutions are built around these five key areas: connectivity, engineering, cloud, experience, and sustainability.
This is the core of every solution that we build. This is at the core of driving business outcomes for our customers, this is the core of driving ultimately value that we bring to them to be relevant for the future. As we do that, what is the TechM way? What does TechM bring in its own process of delivering these solutions to the customer? How are they the trusted advisor? How are we the trusted advisor for our customers? That's the critical part of the discussion here. While you talk about everyone will talk about use cases, everyone will talk about business alignment and the other things like accelerators, working with hyperscalers across the board, the TechM way is the last column here, where we're bringing together cross-industry benefit. For example, we talked about Industry 4.0 and the solutions that CTL and Manish talked about.
What we do, it used to be primarily focused on the manufacturing area, but if you look at what Industry 4.0 does or the future of factory does, is actually applicable to CPG as much as it's applicable to pharma, as much as it's applicable to high-tech industry. From every aspect, we are trying to bring together the aspects of the vertical solutions that are horizontal in nature and are replicable. That's the only way we make sure that we are faster go-to-market, we have a better positioning in the customer base, and we're able to win much many more deals, which is what you saw in the last stage, where you saw the growth and the large deal wins that Tech Mahindra grew approximately about 40% year-on-year from what we were in our large deals to what we finished this year.
I want to bring together a panel on stage, which will primarily talk about how each of these industry verticals are driving the growth and what are they doing to be able to make sure they are relevant. What are they making sure to be able to choose the right industry areas? What we heard from you every time when we've spoken about this is, "Guys, you've got a wide portfolio of service offerings. Focus, zoom in on a few, and be the best." I think what you'll hear from us today is exactly what we've done. I'm going to call on stage our industry leaders, starting with Dhanashree Bhat for CME, Gautam Bhasin for BFSI, Seshan for healthcare and life sciences, Ajith Pai for High Tech, and Debashish Bisoi for manufacturing. I have...
They have actually requested that they stand rather than they sit, I'm going to let them follow their dreams, that they're going to rise, as they say, and not wait for it. The first one to you, Dhanashree, as the ladies go first.
Yes.
I think a couple of things that I thought we should probably highlight as we talk about CME is this hugely proud moment that we have about being recognized fourth time in a row. You know, our largest vertical continues to grow and demonstrate leadership. Dhanashree, while we do that, can you help us understand what's? We've done exceedingly well on 5G and our positioning there. What do you think is the future of that service offering? This is again coming from people who were there at dinner yesterday, and their questions were about you guys have done well, what's the future on 5G, and how do you see this take a turn for the year ahead, and what's the opportunity for us?
Sure. Sure, Jagdish. Can we go back to the last slide, earlier slide, Jagdish? I just want this to register to everyone, right? First thing is we are the dominant leaders in Communication Service Providers space, period. I mean, there's no competition today, at least for us. Second, I wanna thank on this slide the 50,000 people who deliver into this vertical. I wanna thank the 250-plus customers that we work with very closely, who actually give their surveys that actually puts us into the leadership quadrant. Thank you, internally, thank you externally, really, and that's what I wanted to take a minute to actually say thank you to everyone on this slide. Jagdish, I will answer your question.
You know, I'm reminded of one of the dialogues from one of the movies, Jab We Met, as everyone knows. You know, there's a dialogue where he says, "Kya seen hai boss," and it's like that. 5G is here. What's next, right? What are you guys doing? Really, you know, the base. Let me talk about how we've been growing to $1 billion that we are really in. It's not, it's not fluke. It's a methodical way that we've actually put together to grow to this place. How do we say that it is methodical, right? Is if you take lab as a service that we really started in Japan, we've now taken it to 15 different customers or even more.
It is a very thought-through process of replicating from a platform perspective and moving it into 15 different and more customers to come. If you talk about what we did from a digital stack transformation, we did it in Singapore, we did it in Germany, and we are taking it to another 8 or 10 customers beyond. If you talk about customer satisfaction, you must have seen at the booth that Parashar was really presenting, that's where we actually took a customer from 1.7 customer satisfaction rating to 4.8, highest ever in the industry and in Americas, actually. That's what we are saying we can take and replicate across. Tie this back to what we already said what 5G is. 5G for us is not just about networks.
Yes, it is an important part, but for us, it is about what we deliver to the communication service providers, what we deliver to the product vendors, which is those that manufacture 5G equipment, and what we finally also deliver to the enterprises. What we are trying to do is, through these platforms, really build reputable solutions, reputable platforms that can be taken from one to another. The industry part, right? What is the industry saying? The industry is saying that it's going to grow to about 5 billion to 8 billion subscriptions by 2025 in just two years. That means we've grown to 1 billion. Our growth path can actually be to how do we capitalize on this growth with the platform story that we have to actually now grow our revenue from 1 billion to XX that really we can grow to.
Let me tell you what we are also doing, right, for this growth. What we are doing is, you know, only three things, and I think since morning you must have heard this a few times. Simplify, modernize, monetize. No fourth thing. We will only do this. This is our story to our customers. We will help you simplify, we will help you modernize, because what you gain from simplification, we will put it into modernization, and we will work with you very closely to build industry solutions to monetize what you've already implemented from a modernization perspective. I think that's really our story, and that's what we are taking to market.
Thank you. Thank you, Dhanashree. I think one good answer I would have thought is also how many people here have a 5G service? I'm assuming none. That's the big opportunity that, you know, this, as the service starts to grow, there'll be a lot more solution offerings, there's a lot more service delivery, and there's a lot more we support to be able to provide. Thank you. Thank you, Dhanashree, for telling us that. Let's pick up to manufacturing. In each of those, as you know, for us, manufacturing has been a key vertical, and it's been one that's built in our DNA with the Mahindra Group and what we've been able to achieve. I think CTL talked about Chakan plant and the Factory of the Future and the enablement of 4G or LTE to be able to show automation and efficiency. I'll bring in Debashis.
Debashis Biswas, who heads the vertical for us to talk about manufacturing. Tell us, for example, Debashis, from your perspective, what's the future of manufacturing overall as an industry? For us as a part, big participant in it, how do you see this digitalization journey going through, and what's the right opportunity, and what's the big opportunity for Tech M?
Thank you, Jagdish. Good afternoon, everyone. In many ways, you know, these are the questions I was getting when I was interacting with some of our analyst friends yesterday evening and today during lunch. Largely similar questions, right? What is the outlook for the industry? How are you positioned? What is the prognosis for you, right? If I reflect on the last one year, I think for us at Tech Mahindra, we have delivered a very solid performance, a double-digit growth, a bonafide seat at a billion-dollar vertical club. If you break down what is visible at the surface, I think what is more important is that the quality of our revenue has actually improved significantly. We have grown our chip to cloud revenue at a very healthy rate.
Our logged in wheel rate has improved. What is even further important is that we have won large deals from existing customers, we have won large deals from new customers in equal measure, and interesting areas. This brings me to the fact that how are we positioned? When we selected and chose three areas where we want to stay invested, where we want to grow, we actually applied two filter criteria, if you will, right? The first filter criteria is that our customers should be investing in that domain, number one. Second, it should actually offer us an opportunity to co-create with the customers. Anything and everything that I will speak about today will be around these two topics.
Broadly, three areas we have chosen for ourselves, and in some ways you'll see a repetition of what was discussed in the morning. The first domain is called EV and electrification. I'm using a slightly broader definition here. EV stands for electric vehicle, and electrification stands for the chip to cloud area. The second domain is actually Industry 4.0 and resilient supply chain. This is yet another area where we see a lot of growth happening. The third area is kind of ubiquitous. It is sustainability. If I get some time, I'll talk more about what we are doing in sustainability for our customers.
Sure.
Thank you.
Sure, Ashish. That's an important part. I'll promise that we try and give you some more time. Gautam. Gautam is representing banking and financial services and insurance vertical for us. Over the last three years, this has been an extremely consistent and high growth business vertical for us. Has been recognized very well by the industry in terms of where we stand in this. You will all recollect that this amongst the top players is the biggest vertical for most. We were really a challenger. Challenger getting into this vertical, trying to get into or create a niche for ourselves. Our whole strategy on this has been to create a differentiated play. Gautam, this is one industry where digital transformation took a front seat.
We all know BFSI always at the cutting edge of trying to try out new technologies, touchless processes, transformation in models and so and so forth. What are the next frontiers of growth in BFSI, and how are we placed to be able to take advantage of that?
Sure. Thanks for that, Jagdish. At Tech Mahindra, the financial services vertical has shown fantastic growth over the last three years. We are one of the best performing industry verticals. It's a very crowded market space out there from a financial services standpoint. The reason why we have been able to show growth over the other, over others in the industry has been because we have focused on some very specific segments. We are focused on digital adoption, which is one of the big themes, and it's a theme which continues across the banks, last year, this year, and in the foreseeable future as well. And we have created very focused industry solutions which focus on the digital adoption. There are multiple themes that we have picked up around this, the overall digital space.
One of the key themes, and if I have to pick up one, has been, for instance, the digital channels. We have a lot of credentials on digital channels, and we have worked on among building one of the largest web and mobile experiences for a leading global bank. And that gives us depth, it gives us capability. It has gives us capability across retail banking, across corporate banking, across wealth management, and the channel adoption across that. How do we take this forward? How do we look at creating new channels for the banks? How do we look at creating market space and ecosystems, which is the new way the banks are engaging with the industry, is where we are currently working on.
With our different horizontal solutions which you have heard through the day, like XTS, we are doing that. Creating the entire branch experience on the metaverse has been a showcase engagement for us. While a lot of people talk about the metaverse, and a lot of us over the course of the day you would have heard us talking about the metaverse, but amongst the first engagements which Tech Mahindra did, and amongst the first banks which went out there and put the branch experience on the metaverse, Tech Mahindra was the proud partner of that. We are also very proud that we have won 3 industry awards since the last 3 months, since we launched that engagement. That's just 1 example, and there are multiple other examples probably which we can touch upon as we go along.
Sure. Sure. Thank you, Gautam. As we move on, I think I wanted to also bring in the fastest growing vertical for us. It grew about 34% YOY for us last year, and it's something that we are extremely proud of in terms of just not the growth, but also the recognition and the hugely tech talent competitive environment that this operates in. You're dealing with people who are absolutely deep in technology, and there you're trying to prove yourself in terms of your growth and their ability to be able to deliver it. Ajith Pai, who's our Global Head for the service delivery that we do for all our Hi-Tech clients, is going to take us from the journey that we've had. Ajith, thank you. For us, the Hi-Tech vertical is a very interesting place. It's not one area.
It's got three subsets that we work in: semiconns, software OEMs, and hardware vendors. This is the three sets of people that we operate with in this. How are we making sure we are relevant, and how are we making sure that the growth journey will continue?
Thanks, Jagdish, good afternoon, all. Firstly, I would like to update that in the last 24 plus months, we have spent, as a company, considerable amount of energy and effort in bringing together 360-degree partnership and relationship with one of our largest customers and hyperscalers. We see this paying us rich dividend as we move into the future. Secondly, we have been at the forefront of developing joint solutions at scale with most of our partners, the risky customers.
We see this playing out in a very big way, and we will continue to do this. With our key partner status that we enjoy with the three biggest customers that we have in Hi-Tech continues to be playing out a lot of traction. As we go into the future, the might of acquisitions that we have in the last 24 months, we continue to get high value-added work in the areas of semicon engineering, semicon ecosystem, gaming, which we've never had access to before. As an example, in the last three months, we've had an example of a large deal win that we have had, and we purely won this on the back of our unique differentiated solution on the XDS front. XDS is nothing but user experience design services.
Jagdish, we continue to do what we do best. I think our portfolio of companies that we have acquired continues to give us that edge. We can go deeper and deeper to get more value out of the relationships that we already have. I think that is how we are uniquely positioned in the industry.
Thank you. Thank you, Ajith. I think this is absolutely a critical vertical for us. We all are getting more and more included in the whole tech world of how every life part of our business runs, and so the people that we work with, pretty much our clients run our daily lives, and literally so. I'm gonna call in Seshan here to primarily talk about the fourth one plus four's fourth vertical, which is healthcare and life sciences. Again, this is an area that we've been strongly invested in over the last three to four years, and we've built capability in an area where we have seen tremendous potential, and therefore invested in because this was an area where there was quite crowded. For us, to win in this marketplace, we had to be very differentiated and get our feet inside.
I'm gonna talk to Seshan about it as we start to get in. Seshan, COVID has obviously transformed the way every part of this industry operates. You know, we've had patient experiences changing. Our pharma productivity and development because of the speed at which the research needs to be done using AI, et cetera, has changed. What's your view of where the industry is going, and how is Tech Mahindra confident to be able to win in this space?
Thanks, Jam. I think that's a great question. I wanna, you know, call out three or four keywords, right. I mean, nothing that you have not heard before. Virtual care, telemedicine, AI and ML, data and analytics, and these are things that existed even prior to COVID, right, in some way, shape, or form. COVID has actually forced the healthcare and life sciences industry to innovate. Innovate they did, right. I'm gonna talk about. I'll take two examples, right. The first is what we call care on demand, right. That's the first trend that's here to stay in a big way.
Jagdish, did you know that, you know, when we are talking about care on demand, I just wanna clarify, this is essentially nothing but shifting the care to patients, shifting the care, you know, of healthcare delivery closer to patients. Did you know that, you know, hospital systems today across the world are spending close to $220 billion-$225 billion on this, and this is expected to double in the next 7 years. There's a significant amount of spend that hospital systems are doing. In fact, one of our hospital systems, and I'll give you a live example. This is, I would say, U.S. second-largest, faith-based hospital systems. It's a missionary-run organization, nonprofit, et cetera, et cetera.
They came to us saying that, you know, they want to essentially build this, you know, what I would call system of engagement. We helped work with them. We built them micro clinics, and these are essentially 2-4-bed hospital rooms, right? They're called micro clinics, if you will. We helped set them up, right? What we are talking about is essentially rolling out an end-to-end EMR, EHR platform for micro clinics. Today, hospital systems have increasingly started to work with primary care providers, setting up micro clinics, all with the objective of taking that, you know, care closer to the patients. I'm gonna give one more life sciences example before I turn it over to you, right?
This is essentially the second trend, which is how do we use data and analytics, AI and ML towards, you know, elevating patient experiences, right? One of U.S.' largest, you know, biopharma companies, they came to us saying, "Hey, we are sitting on, you know, terabytes and petabytes of data," right? This is all patient data, drug data, and this was during COVID, right? They said, "Hey, we want you to take this data and analyze it." This is data from some 8,000 drugs. They said, "Hey, can you do a rapid analysis of this data and help us identify, you know, a much smaller subset of drugs that could potentially be candidates for COVID," right? That's exactly what we did. We have a platform. It's called Computational Drug Discovery. It's a set of AI algorithms.
It's a platform that we are building with today because that's essentially where the industry is headed. We help them whittle down those, you know, using the AI and ML and data, collaborating with Makers Lab, right? To bringing down those 8,000 drugs to about 17 drugs. Yet another example of another trend that's here to stay, Jagdish.
Thank you. Thank you, Seshan. This is, as we have always said, in our 1 plus 4 strategy, is a key vertical for us. We are invested in it. Like I was telling most people yesterday evening. That this is going to be a journey. Over the last 3 years, that journey has significantly grown for us. Thank you. Dhanashree, I'm gonna come back to you, as we get into the round 2 of this. We've talked about media and entertainment in our portfolio, but it almost gets overshadowed by the large communications business that we have. What's happening in our media and entertainment business, and what gives us confidence that we will grow at the speed that we've grown?
Yeah. Big question, right, Jagdish, and I will address 2 points really. One is let's address the media and entertainment question that we have. We said 3 things. Now we have 4 things that we will be doing for media and entertainment. Simple and very clear. A, we will sell whatever we are good at, which is our IT services into the media companies. Two, we've got an acquisition Lodestone. We've got a platform quality-as-a-service and framework. We are selling that into the media companies. Good news is, in some way, every one of you who's on social media is using it today. You are there. We are there, and we can grow that big.
Third thing that we will do is video engineering, so we capture the cable market very, very well. The fourth thing that we are doing, and Dilip alluded to it today morning, is studio part of it. We are actually creating seasons and episodes for animation for one of the largest production studio in the West Coast. Really, those are the four things that we are doing. Good thing is we've actually grown our revenue from last year to this year 2X. The proof of the pudding is in the growth that we've seen before we've grown, we've grown 2X over there. I wanna also address, you know, our transformation story, and since Jagdish, you put up this slide as well, for the telcos, right?
Overall our transformation story is keeping it simple, really. We're not going to do too many things. We'll keep it simple. One, we will, you know, we will make the telcos spend less. We don't want the telcos to spend more, but we will help them change faster. That's the first thing you know that we will remember. Second, what we will do is we will use a platform-based approach, and now I'm talking about CME as a vertical. We will always use a platform-based approach, you know, we will partner with the right people for the platforms that is there. All in all, what we are trying to say is we will take a greenfield approach, but we will have patches of brownfield approach.
The last part of it, which is the greatest part of it, is there are three new telcos that are actually implementing 5G first time. We are part of all three of them, one in Japan, one in Germany, and one in the U.S. The good thing is it's all resonating. Greenfield, brownfield, our transformation piece, everything is resonating. I thought I'd just answer everything over here, Jagdish.
Thank you. Thank you, Dhanashree. It, I think, is an important part of our largest vertical to drive the future investment growth areas, and thank you for highlighting that. Debashish, I'm gonna call you in. You talked about our focus on EV and electrification. We've captured that in the engineering services discussion that Abhiroop came and spoke about as well. How are we helping our customers, and how are we being relevant to this big investment area, sourcing and the allied area of the whole supply chain?
Sure. Thanks, Jagdish. Let me answer this segment of my, you know, response with some customer stories, right? In the first bucket, which is EV and electrification, we actually started working with a Japanese car company, which is a very, very popular name in India, under confidentiality, so I won't be able to go any further than that. They wanted to set up an ADAS solution center for all their cars being sold globally. Now, look at the magnitude of the complexity involved. It involves picking up the data from the car, tagging, and putting the analytics and algorithm on top. It was actually a leap of faith for the Jap customers to be able to start working with us. We were in the...
in R&D mode with them for about 18 months before we could actually formalize the relationship. Single source relationship, give us the that we could stay focused, invested in the EV and electrification domain, and more importantly, co-create. One example. The second example I want to is actually, you know, happening right here in India. In India as we speak, the EV revolution has already happened in the delivery vehicles or the utility vehicles domain. You see a lot of three-wheelers that actually carry a lot of load. They get to charge in the morning, and the biggest thing in their mind is whether they will make home in the evening, right? They don't have the luxury of light weighting carry load. Here again, and this is a solution which we have built with partners.
We have come up with a proprietary solution which monitors various conditions, condition battery, so on and so forth, the load factor, and extends the range of the vehicle. Very, very practical and real problem. The second domain, which is, the Industry 4.0 space, customers are going from... That is really what is happening. Why wasn't it happening before? There were two impediments. The cost of, let us say, storing the data, analyzing the data was actually prohibitive. This one. By virtue of being what they are, they are actually located in remote locations, so access and network was a challenge. This is where we are, you know, we have a vantage position, right? We solve the network problem through 5G. We solve the storage and analysis problem through cloud. A lot of interesting things happening here.
I'll just do a couple of examples, but these are very profound examples. During COVID, imagine this. 35 did not manufacture vaccines in time. We take it for granted. We all got vaccines in time, and we feel lucky for, you know, being where we are today. Again, an example of Industry 4.0. We work with one of our pharma customers. We call it a digital implementation. There are multiple other examples in Industry 4.0 domain which again touch our lives. Imagine the oil and gas guys, right? If they weren't able to produce in a lights-out manner, if they weren't able to run their factories remotely, our vehicles would have stopped, supply chains would have crashed. That is as profound as those examples can get.
The third domain, which is sustainability. Again, a very transversal area because environment, sustainability, governance, et cetera, has been a very, you know, critical underlying aspect of manufacturing for a long time. Because of who we are at Tech M, our natural sweet spot has been to help CIOs design green IT data centers. We work with a lot of our partners to build sustainable energy efficient, low heat emitting data centers. Most importantly, we have also used our portfolio companies to help design and manufacture sustainable products. There are very large-scale initiatives happening in Europe and U.K., where we are helping our customers build what we call gigafactories. Because it is batteries that go into cars and other electrification devices, it also helps in the final objective of green products. Thank you.
Thank you, Debashish. They probably pre-empted Gautam, that you're going to come and talk. They probably wanted to talk a lot about BFSI. In the BFSI sector, as we talk a bit about the R word, I was told yesterday by one of the analysts there are only two words in the economy today: C for ChatGPT and R for recession. The R word, there's a lot of discussion about the impact on the banking and financial services. How is Tech M placed to grow in that industry, and what's the size of the opportunity that we are targeting in that?
Sure, Jagdish. Recession, it's coming, it's not coming. None of us know, but we are well prepared to kind of take care of that. In my previous response, I had spoken about differentiated industry solutions, and differentiated industry solutions is the way forward in good times and bad times. That's how it helps us grow. I'll pick up insurance first this time. Or broadly for financial institutions, the core theme, the dominant theme is modernize your core. That has been a theme for a while now. Going to the cloud and modernizing is probably a bigger theme in today's day and age. In insurance, taking policy on cloud, doing underwriting on the cloud, doing claims on cloud, doing direct to consumer.
We are well equipped with all these core capabilities, some of it through acquired companies, some of it built organically through the customers that we work with, which will allow us to, if and when the recession comes in, to step up and package with the insurers and help them become more efficient in what they do. On the banking side, again, we have been fairly active on modernizing the core, whether it's on the core banking side, where in the last year alone, we worked with five digital-only banks, neobanks. We moved a lot of the core to the cloud, which has been accomplished. In the bank, we have helped launch digital lending products and allied things around core banking, which allows banks to again operate more efficiently.
From a service cat perspective, I think we are very well equipped, to cater to, helping organizations, banks and insurances both, to operate more efficiently and become more, efficient in what they do. I think, we are well equipped, through these, capabilities to go out and, keep growing the way we have. Like I said, the last time I came here is that we have grown. We are one of the fastest growing industry verticals in Tech Mahindra, and we will continue to grow at pace through this year and next year as well.
Thank you. Thank you, Gautam. Ajith, I'm gonna quickly bring you in. This is Hi-Tech, which we just talked about a little in our first version, that 34% YoY growth, fastest growing vertical. It's also the amorphous sector, very adept disruption and therefore constantly changing technology trends are adapting it. How is Tech M and your vertical preparing to be able to take on the challenges that it comes together and still grow at the pace that you've grown?
Sure. I think the last 3 years has seen a lot of capacity build from most of the industry leaders. That's obviously causing a lot of cost sensitivity in the current times. What we have been doing very, very proactively in the last 6 months is engage with all our key customers in a very big way. What's emerging out of these conversations is 2 or 3 patterns. One is there are a set of customers who are really big, the industry leaders, who don't want to reduce their budget. They want to keep it flat. They want to do more for less.
Obviously, this is a huge opportunity for players like us, and with the might we have with the acquisitions that we have made, we have a lot of depth in the kind of capabilities that we have acquired, and we will continue to play that. Then there is a second set of team where there are customers who were never open to exposing their core engineering work to players like us, and now that is happening. That is again, a very encouraging sign. Then the third bucket, which is the startup ecosystem, which is comprising of the unicorns, and then there are players who are on their path to become unicorns. They have the biggest cost sensitivity in the market, and they continue to engage us in areas like digital product engineering, quality engineering, and many more areas. All in all, I...
Jagdish, to your question, the answer is.
While we continue to see some headwinds, the tailwinds will definitely outweigh. We have been the fastest growing vertical the last 3 years for the company, and I'm quite confident that this will continue to pay us off. Our strategy in terms of acquisition, pitching for the right areas at the right time, themes like off-to-shoring, consolidate and optimize will continuously help us in bringing more value to our customers.
Thank you. Thank you, Ajith. Seshan, I'll bring you in here to the final segment really for the vertical panel. For us in this, as we had been invested in building our capability, we did put together certain capabilities organically and certain capabilities inorganically. Through HCI or Perigord or a couple of others, we built a portfolio. How is that playing out for us in the market, and what's the opportunity for us to continue to drive growth here?
Sure. Thanks, Jagdish. Again, I wanna keep my answers short because I'm getting some frowns here. I wanna start by saying that, you know, 6 years back when we did the HCI acquisition, I think that kind of gave us a very strong foundation wherein we could embark on our overall healthcare growth story and our overall digital transformation story as well, right? Today, over the last 18 months, we've actually successfully set up one of the largest centers of excellence for EMR/EHR, and I'm talking Cerner and Epic. We have centers of excellence in India as well as in the U.S. and in Europe as well.
I believe that we are one of, you know, three leading SIs anywhere globally, you know, in terms of doing run, build, and transform from an EMR/EHR perspective. With that note, I'm gonna probably talk about, you know, three areas where I think growth is gonna come from. We are looking at it quite aggressively over the next 12 to 18 months. First is EMR/EHR transformation. I'll come to that in a minute. Second is, and I think Gautam and others alluded to it, which is modernizing your core tech, right? No different from how it is for some of the other industry verticals. That's our bread and butter.
The third one is, you know, I would say using our experience design services, Dilip and others have spoken enough about it, in the morning, to transform and elevate our patient experience. I wanna give one example of, you know, each of these, if you will. In terms of, you know, the first one, EMR/EHR transformation. See, today, most hospital systems in the US are actually crunched for revenue, right? They have some challenges in terms of either nurse shortages, or, you know, value-based care, right? The whole system has moved to value-based care. Their ability to bill, and close their books from a revenue perspective is severely challenged.
That's where for one of U.S.' largest hospital systems, we have set up a 75 member, associate revenue cycle technology center of excellence, right? What this does is this essentially helps these ministries across hospitals to mop up that revenue and help them close their books. We are essentially enabling them to, you know, meet their committed revenue guidance to the Wall Street, right? That's one example. I don't wanna talk about modernizing the core. Again, that's got to do with, you know, some of the centers of excellence in the clinical side of things that, you know, we have done over the last 12 to 18 months.
The third one is in terms of leveraging some of the portfolio companies that you spoke about, Jagdish, and taking that experience design services, if you will, you know, leveraging BORN, Bio and Magpow and even Test to our customers. You know, coupling them with the clinical experiences from HCI, if you will. I wanna talk about Dr. Shanda Blackmon, right? She's a very renowned cardiothoracic surgeon from one of U.S.' top hospitals. I don't wanna name it. She came to us with a very unique problem statement, which is, you know, she said she wants to track her patients post-discharge, post-surgery and post-discharge, right? In terms of the need to close the feedback loop, even, you know, months and years after the surgery.
Because this is life-saving, you know, we are talking about esophageal cancer, right? Post-esophagectomy, she wanted to track it. We work collaboratively with our clinical teams, which is HCI, with our experience design services teams like BORN and others, to build, you know, a mobile, it's a mobile application, but it's an ecosystem surrounding the mobile application. This is something that we built in six to eight weeks' time. This is one of the examples in terms of how we are leveraging experience design services to elevate patient experiences. There are other focus areas as well, but I thought these are the top three that we should talk about.
Thank you. Thank you. Thank you, Seshan. That, ladies and gentlemen, brings us to the end of the panel. I just want to sort of leave you with a key message here that we were trying to drive. Industry verticals is not just the way we report our numbers, but it's also the way we talk to our clients. As I was telling you, one of the analysts told us yesterday, we've earned the right to be able to enable them to be relevant for the future.
I think one of the reasons I decided we should put this up is it's a very focused approach on that one plus four, which you keep hearing from you, that get focused, and that's what we've done and applied here, on areas and pools of buckets of opportunities in every vertical where there's a significant pool to be earned for us. Thank you. Thank you for listening to us, and thank you, guys.
Thank you. Thank you, Jagdish and team. We now come to the last, the very last segment, which I'm sure is possibly the most awaited one as well. That's the Q&A segment. I request CP and Rohit to please join us on stage. For those of you who've joined us online, do type in your questions. We promise to try and take a few of yours as well.
Hi, good evening. Good afternoon. I mean, obviously the last session is all about getting feedback, any comments. Though I know that the team has tried to be interactive, at least during the lunch sessions, you had a chance to see the demos, and all I can say is that, in ruling party's language it is called Mann Ki Baat, and in popular one of the TV serials it is called Aap Ki Adalat. Anyway, this is for the today's round of conversations. Anybody wants to lead? Vrinda, you have some protocol mics and everything?
Yeah.
Yeah. Just raise the hand. Any comments, anything. I mean, it's not necessary questions only. Your observations, your comments, feedback, any advice, everything is welcome. CTL join us. I mean, the average height of the team is... Bhairavi, this will be the shortest Q&A session in the world.
Okay.
Pankaj.
Thank you, CP, for the sessions in the morning. Very informative. My question actually is: How should we interpret about the focus, the strategy that all the panelists in the morning since morning have been talking about, given that there is a leadership transition which is likely to happen during the year? Are you looking for someone who basically will come in and essentially execute what you have, you have talked about, the strategy which is already in place? Or you are open to look for someone who can come in and maybe even do a complete overhaul of many of these things?
I mean, the way I look at it is, this is a running train, and the reality is that even I'll have a reasonable transition period between me and the new leader. Clearly, the assumption is that, A, the leadership team is here to stay, and number two is that even I would be part of the team which will make sure that the transition happens. The strategy is built around the customer, it is not built around the individual. The strategy has been drawn with the with some of our key customers. We have taken inputs from our key customers. We have actually had interactive sessions. Frankly, Manish had 4 sessions before he reached MWC. Much of it is available on LinkedIn because he calls these sessions a Simplify Session.
He actually went and spoke to the customers. Since it's all public domain, why don't you discuss it?
No, absolutely. I think I said it yesterday as well. The only time we, with all respect to all of you, we lose our real sleep is when a customer comes back and gives us a feedback that is not coherent to what we are thinking or vice versa. We are continuing to evolve always around customer centricity. What we did in this Simplicity Series is we just asked very basic fundamental questions. What's your priority? We asked one, two, three, four, every single customer, and we got really consistent answers. We asked them, "What does speed to you mean?" They gave us the answer on speed. We asked just, "How would you like to solve the problems?" They clearly said that it is not just with people. Not just sheer, you know, lifting the weight through the quantum of people.
You've got to marry and match the quantum of people with the IT. Kunal mentioned about 1.6 billion lines of code in just one platform. I spoke about the entire four-layered approach is built on a swath of solid, amazing code that we have now. We're just using them a lot more methodically going forward. I think it's all a response in many ways, but just a proactive response listening to the... Because they don't tell us how to do it. They just tell us what to solve. We are taking an approach on how to solve that as well.
My second question is to Rohit. One of the slides you showed in the morning, it had those bars of your EBIT margin for 2024, 2026 also. I was just curious, if I'm reading it correctly, that the bar for 2024 was slightly lower than the 2022. Does it mean that we are looking at a margin
Now it's very flattish kind of range next year.
Yeah. I think it's a little bit of imagination of everybody. I think Kamaljit interpreted differently, Surendra interpreted differently, and you do. We just wanted to make sure that everybody give their thoughts around it. No, I think, just leaving that out, the thought is, and we've communicated it continuously to you guys, that short-term it's operating metrics that we have a lot of headroom on, and we'll continue to drive that for margin expansion, and we've shared those metrics with you guys. I think long term, it's more structural changes. Some of the investments we've already done, like the competency build, we will invest more there in more accretive competencies that drives better mix. We'll invest in more geo mix, which will drive better margins. These are structural long-term changes.
Some of the M&A investments which are, you know, accounting charges will fade away. As you move forward, you'll see those normalizing, and hence our view is that we've operated at a particular level. We'll get back to that as a first instance, and then plus after that on all of these structural changes. I think the journey is gonna be accretive as we move forward.
Any further questions? Okay. There is one question that we received from virtual participants. I'll read that out here. What is the current revenue mix of products and platforms? What would this mix be over the next three to five years?
I don't know, Manish, whether I did cover it in one of my press interviews, that current product and platform is less than $450 million, and it's approximately $450 million. The assumption is in the next 2 to 3 years, as soon as... I mean, it's not a new business. We have always had Comviva for telecom products. What we have done is, in the last 6 months, rearranged and brought it under one leadership, and now we've created a separate division for it. We expect that to become a billion-dollar in less than 3 years.
Thank you, CP.
Hi, just to extend the same PnP point, Manish, you mentioned that there are deals how they have come from 18-month cycle to, you know, 6, 7-month cycle. There was a presentation outside on the UDX front, where you said how the revenue monetization thought process has also evolved. How it changes in terms of the size of the deal because of the sprint, and how it also changes in terms of the revenue flow. Maybe the lifetime value could be better, but how from a recognition point of view, it changes?
I think it's a great question. Let's just take a look at one industry, because you spoke about that example, telecom. Dhanashree spoke about that as well. It used to take 18 months, and let's say, I'm just making a number, about $10 million. It will now take six months or less, and let's say $5 million. The fact is that this industry, and this will happen in different industries at different point in time, the change is not just about what is the change you want, which is a modernization, let's face it. The most important operative word is speed, right? And obviously, you want the capital investments in new change to be much lesser than previous because tech has evolved. AI is really. Productivity levels of the way the low code, no code works is obviously 80%, 90% better.
This only means that the industry is heading in absolutely the right direction. What we are doing, we're just latching onto and sitting on that horse as we ride towards that. These examples that you saw that we presented on UDXP is perfect. We believe there will be lot more of those. We've just done 18 of those, and only one of them where we have all platforms playing at one place. The headroom to grow for us as we continue to convince more and more customers about our these capabilities, I think is absolutely fantastic. Deal size-wise, yes, these deal sizes on transformation will be smaller, but multiplied by number of N, I think it will be a lot more. Earlier, with the same set of people, we could do 10 turnkey projects. We now will be able to do 40.
All 40 are needed. If we are not doing it, somebody else is doing it. Our ability to win will be better, our ability to contribute and predictable delivery, and no doubt, our ability to deliver better margins, which will be a lot better on these transformation projects. Historically, these transformation projects have not really been very margin accretive initially. Life cycle is absolutely always good once they move to managed services, which we will still do. Once we deploy, we will manage as well.
I mean, of course, from a longer term perspective, this business definitely makes sense. You said, on a shorter point, it reduces the revenue for now. Also, the margin accretion does not happen upfront. With this piece going, at a much more faster pace, are we capturing that in the growth and margin assumption that we are talking about? That would also have some temporary dent to whatever outlook we want to share eventually.
I don't think there will be a dent, because the way we are investing and building this platform is built into our current margin play, right? However, it's not that it is about many of them are already with about 7-10 customers, so we already got our early success. Now it's about scaling them, and as we scale them to continue to build.
The features and functionalities even better. The second point I should address so that there is no confusion. The large deals will continue to happen in our business when we do optimization and cost takeout, right? As we speak, there are some of the largest deals that we are currently playing with, right? They could be 9 months to 12 months away, but those deals are there. These are about really optimizing OpEx big time. It has no, you know, correlation really. These are two separate things.
Sure. Just to take this large deal thought process to what Rohit mentioned in his slide, that large deal was looking like a cost impact in the past and looks like a lever going forward, which somewhere say that there won't be more number of large deal this year in a way. I'm sure we are not saying that. How it is accretive when it is an impact in the past two years?
What we're saying is that, when you look at the mix of overall business, we were operating at a much smaller number, right? Suddenly, the mix has gone doubled. When you look at that number, if the mix stays the same and that normalizes, then your benefit of the cycle will start coming back, right?
Mm-hmm.
Hence, that is the math I was talking about, not that we won't do more large deals. Unless our mix doubles in large deals, again we'll have the same cycle. Yeah.
Sure. Thank you.
There is another question from online participant. Rohit, any guidance on revenue and margins for FY 2024?
You can answer that.
You can answer that. We know the answer, but you can take it.
No. We don't, we don't as a policy, we don't give guidance. I think we're generally talking about and CP spoke about our focus. We are focused on margin expansion, operating excellence. That's an area we'll continue to drive. You saw all the levers. From a growth perspective, I think you saw the presentations, where are we on verticals, competencies, in new areas of co-creation and platform. We'll continue to tap those opportunities incremental. Generally, you know, you could see the macro environment is a little bit more tepid than it what it was. That will reflect as we move forward, but we have enough opportunities to tap into.
Yeah. Hi, Vibhor here from Nova. My question was on the M&A strategy. I think, last couple of years, we've made some good acquisitions which have boosted our growth as well, and we saw the slides on that as well. Just wanted to basically understand going forward, are we still looking to continue on that part or are we kind of taking a break and kind of consolidating the acquisitions that we have made? To tie that up with the products and platform strategy, are we looking to just grow our products and product portfolio organically from here? Or are we also open to like kind of acquisitions which some of our peers have made and follow that strategy as well?
Vivek.
I think just in terms of the M&A strategy, we stated at the beginning of the current fiscal year that we will slow down the new acquisitions. I think that's what we've done. We've been very focused on integration and driving synergy. I spoke about it in my presentation. I think that's a continued part of our plan going forward. I think with respect to new acquisitions, whether it is for specific competencies or products and platforms, I think the criteria is the same. We're going to be selective, continue to look for opportunities which are extremely accretive and meet our thresholds on returns criterias. We think we can integrate and create incremental value.
I think that criteria, and having a programmatic approach around it, I think that discipline will continue. We will be very selective. That's the direction we've taken. Yeah.
We would be open to any inorganic part in the products and platform growth as well?
Again, I think it's a case to case thing, right?
Case to case.
I mean, ultimately, every evaluation has to stand on its own business case. Yeah.
Got it. Just one last question for Rohit. In terms of margins, I know you mentioned there are multiple levers that we are looking for in expansion near term, but I just, basically, one of your slides mentioned our attrition is down to 17%, subcontracting down to 14%, onshore is 74%, utilization also close to our peak levels. Most of these levers seems to have peaked out. Just looking to understand what are the incremental levers that you could be looking at in near term, because, I mean, there's much less scope left in these numbers to be able to expand the margins beyond what we are today.
Yeah. I think when you look at subcontracting, we were at 16, we're at 14.5. I think we feel we significantly can bring that down to, you know, levels that we operated in the past and the benchmark we've set for ourselves. There is significant headroom there. Similarly in offshoring as well. The reason we are stable year-on-year and because of the new on-site deals we had, which was significant volume uptake versus what was in the past. There again, when we compare ourself to where we want to get to and peer benchmarking, we have a gap even adjusting for our on-site mix of the business, right. There, those two we do. Utilization, I agree. I think it's marginal where we are right now.
It's about large deals that I spoke to you about. As they get into maturity, we'll get some benefit. There's a lot of internal simplification that we're driving that should give us some cost benefits, including middle office, et cetera, that we're working on. Between these levers operationally, we think we can get better, beyond divesting some of the non, you know, accretive and low margin businesses, which will be another lever we'll drive. Yeah.
Got it. Thanks.
Ruchi?
This is Aved on products and platform. Can you explain us how the sales organization for your products and platform is structured today, and what are the investments you are planning there?
Ruchi, some of us discussed it offline, so I'm just going to repeat the answer that I gave offline during the lunch conversations. The way we are structured is today, as it is, I have five product lines which flow into a customer. Three or four I called out on the stage during my presentation, which was sorry, IT services is anyway there. We had engineering services, network services, cybersecurity services, BPS, and what is called XDS, which is the erstwhile BORN Group. The way we are structured, and now we added directly two lines which two different divisions, which is product and platforms, and we have said co-creation with customers. The way it works is let's assume that the customer is Mahindra & Mahindra. Mahindra & Mahindra will have a client partner.
A client partner is somebody who we all rally behind that person because that person is continuously interacting. It used to be very easy when we used to sell only IT services. Over a period of time, what we realized is that we did a customer survey with the top 200 customers. The way they buy, we realized 57% of the business is bought by the CIO. 43% of technology is bought now by a CMO, a chief security officer, or a chief networks officer. My point out here is that we do realize that by elevating these two positions, what we are now saying is, instead of 5, there will be 7 people on the dining table, but they will still be led by the client partner. That's obviously we can do it only for the top 200 clients.
For others, I think we will slowly mature it. Today, the way it happens is CTL is one of the clients will be very high on engineering services. Now, there we build an incentive structure. That incentive structure is more how he or she exposes the rest of the organization, how he or she builds relationships. We have a saga-based customer. CTL, you wanna give that example, how you incentivize people to sell other services.
Yeah. You know, if you take the example that we gave of this AR/VR solution, there is a team. Manish Vyas' team will cook the solution, you know, with experts, have it ready. You have the front-end sales force, you know, like CP described, the client partners who are embedded. Once it's successful in Ford, the client partner, you know, it's exposed to everybody, you know, across the hunters and farmers within the Tech M world globally. They would go to a Nissan. All these are customers now. Paccar, Navistar, so on and so forth. There's a special incentive kicker that's, you know, built in, which turns the focus and attention on this. You know, these sales tend to take longer. In order to capture the attention, there's an incentive scheme that's lined up as well.
Once there are three success stories, then pigs will learn how to fly.
Can I just add something? you know, if we were an independent product company, you are absolutely right. We will need 60% of our investment in sales. Please appreciate what I said. We are looking at this from a simple lens, and that is 1,250 customers. Yes, that 1,250 will become 1,350 in some time. Not that we will not sell to others, but the underlying sales infrastructure is in place. We just need some augmentation to support these specific products, which we anyway do. What is changing is really a mindset, not necessarily. It is also not true that these people that we have on the ground are not capable to sell this. Inherently, everything that CP just described and the way CTL described are problem solvers.
We are now just giving them an additional intellectual tool called product a- sitting on a platform base to be able to solve that problem a lot better. Hence, it is not a very fundamental shift from how we sell. It's a fundamental shift in terms of how we are going to architect our solutions going forward. I hope that answers it.
In terms of your product roadmap for organically, going forward, do we hear more products coming out, or do we hear more features coming out on the products that you have discussed so far?
Yeah. I think we'll evolve them, but at this point in time, we are very good with the set of assets that we have. Based on the growth pattern that CP suggested is based on that. We'll add a couple of things more.
Yeah. If I can add to this. When you start on a solution, once it goes in, you know, as you go further down, the road opens up before you. There are a whole lot of new use cases that come. The AR/VR solution, now we have five more use cases that are already getting built in the conte side. Once we identify a particular industry problem to solve, we always see that building incremental use cases happens much faster and at a much quicker rate. You're constantly feeling the pulse of the customer, right? As you go deeper in, they come up with problems, you come up with, you identify problems, you sit down, discuss with them. That's what co-creation is all about. Did we answer your question?
Yes. Thank you.
Thank you.
Okay, guys. I mean, thank you, thank you on behalf of all of us at Tech Mahindra, both for friends who joined us virtually and for all the friends who have come all the way. We are indeed grateful. I can reassure you that we find these sessions very, very useful because not only because of your questions, many a times there are appreciations also. For example, Kamaljit took me aside this afternoon, and he told me, "Yours, Tech Mahindra, our company did the best in COVID relief at the way we engaged with the employees." He did even mention that it reflected in your lower attrition because you engaged better. As you come in with your comments and appreciation, I can only say thank you and thank you, everybody. Thank you.
I'll also take to thank the management, for taking out time.
Wait. Hold on.