The focus of Mastek has been service post the demerger with Majesco, says Abhishek Singh, Group CFO, Mastek. In this interview with Elets New Network (ENN), Singh talks about the business and revenue model and the ethos of Mastek.
How has the focus of Mastek shifted post the demerger with Majesco?
In the current avatar, post the demerger, we are out and out services focused. When the demerger happened, it became services and UK centric organisation because the US business went into a demerger at the other side of the aisle. If you look at 2016 as a pivot, five percent of the revenue was coming from UK; majority of the revenue was coming from the public sector. It still had a lot of revenue coming as a sub contract. A history in UK is 26 years old on which I think we have operated as sub contractors for 23-24 years. The new Mastek is services focused, doing business with the government and customers directly. Four years back, 60 to 70 percent of the revenue was sub contractual. Today it is down to three percent at the maximum. Everything else is directly dealt with the customer.
Geographically, what is the revenue at present?
The revenue was 95 percent in UK and five percent in India. Today in 2019, it is 75 percent UK, 24 percent US and only one percent in India. We were the system integrated partner for Oracle. UK continued to be what we call the transformation and the capability that we have always had of a very large nature. Now the finger scanning and the facial recognition are the next generation technologies that they want to incorporate. That needs a very large programme delivery and it is a big engagement for us as well. We have always been doing that. It’s just that when digital transformation is concerned, there are no legacies here for which we need to protect. To sum up, what happened in the last 18-24 months, that’s what we have been organising ourselves to. We professionalise the management where the promoters have taken their board positions and that they are not in the active management of the business.
Coming to the delivery part, in terms of the delivery infrastructure that has been provided, where is the delivery centers?
In UK we have got two major hubs that are Reading and Leeds. In India it’s predominantly Mumbai. Pune is a small footprint followed by Noida and Gurgaon and a small part is in Chennai as well.
What does it mean from the Mastek perspective that your internal workforce, their skill sets have undergone a dynamic transformation?
The genesis of the transformation lies within the organisation. When we did London Congestion Charging Project, it was not just 300 or 400 coders writing the code, it also had 20 or 30 solution architects designing it. And architecting has been a different initiative for Mastek ever since. We have never participated in strength or weakness for everyone else to judge. But you had a bespoke solution you will find 10 people signing up and standing up that drives their creative juices. So going back, even at that time, we had enough architects and today they are the one driving the front end conversation which then leads to the delivery opportunities.