Mphasis Boosts Efficiency with AI Initiatives
Mphasis is experiencing significant changes in its operations thanks to its focus on artificial intelligence (AI). The company has reported efficiency improvements of 20-30%, shifting from a model mainly dependent on human resources to one that is more technology-driven, according to CEO Nitin Rakesh.
These advancements are not just enhancing service delivery; they are also changing the way Mphasis structures its deals and interacts with clients. Rakesh explained that these efficiencies allow the company to assist clients in modernizing their applications and moving towards tech-based solutions that align with business goals.
Recently, Mphasis has seen a notable increase in AI-related business. Just six months ago, only 30-35% of its deal wins involved AI, but that figure has surged to 65% now. “This means AI is either part of the deal, or we’re using it to improve efficiency and quality,” said Rakesh.
The company’s AI, particularly its NeoZeta platform, is creating new opportunities for lowering costs and speeding up project timelines. Rakesh shared that they can now reduce market entry times by 60%, which also helps cut costs by 30-40% by minimizing errors.
In the most recent quarter, Mphasis reported revenue growth of 4.5%, totaling ₹3,717.5 crore, and a net profit increase of 4.4% to ₹446.5 crore. Their operating margin remained steady at 15.3%.
Rakesh expressed satisfaction with the overall performance, noting this quarter had the highest growth in 12 quarters and significant total contract value wins worth $390 million, an increase from the previous quarter.
However, Rakesh acknowledged concerns around the potential impact of US tariffs, especially for industries linked to global trade and supply chains. He pointed out that while sectors like manufacturing and logistics may be more directly affected, 70-75% of Mphasis’s business comes from industries less immediately impacted.
Nonetheless, he cautioned that prolonged tariff issues could affect all sectors and delay important decisions. Despite these uncertainties, there remains a strong demand for AI and technology initiatives. Rakesh highlighted that, according to one bank’s CEO, the intention to implement AI remains strong despite broader economic challenges.
