The investments by telecom industry in the software-driven 5G (fifth generation) network and a transfer in the communications business with increasing data usage are likely to drive development for Tech Mahindra in the long term, claimed experts.
The IT services firm worth $4.9 Billion, which garners over 40% of its income from its communication arm, has been grappling to develop this business for the last couple of quarters owing to issues with some major customers. But it anticipates a revitalization as the telecom sector gradually moves its aim to software from hardware with more users employing data, experts claimed.
Setting up of 5G by mobile service suppliers might generate various growth avenues for IT service suppliers not only in the telecom industry, but also bring in agreements from industrial, automotive, and healthcare verticals, experts claimed to the media.
“Tech Mahindra mentioned that communication sector is seeing a sturdy structural movement with data usage explosion,” claimed IT expert Madhu Babu, to the media in an interview.
On a related note, Tech Mahindra earlier claimed that it is joining hands with Rakuten Mobile Network (Japan’s telecom company) to set-up 5G software-supported network labs in Bengaluru and Tokyo. The labs will be aimed at boosting innovation and bringing transformation of mobile network tech as well as to improve customer experience for consumers in Japan.
The declaration comes on the back of Narendra Modi’s (Prime Minister of India) visit to Japan and meeting with Shinzo Abe (Prime Minister of Japan) to additionally reinforce Indo-Japan business relations.
“5G has the ability to unlock unprecedented avenues in each industry domain and sector. Our association with Rakuten will assist us additionally boost innovation in the 5G sector, and allow us to improve user experience and spearhead the development in mobile network tech from the vanguard position,” claimed Chief Executive Officer and Managing Director at Tech Mahindra, CP Gurnani, to the media in an interview.