Latest news with #NitinRakesh
Mint
4 days ago
- Business
- Mint
Mphasis to lose FedEx business accounting for 8% of total revenue
Mphasis Ltd has lost one of its oldest clients, which accounted for 8% of the revenue of India's seventh-largest information technology services firm, after FedEx Corp. selected Accenture Plc to do much of its IT work. This loss presents a fresh challenge for CEO Nitin Rakesh to replace the loss in business in a challenging economic environment. Three people familiar with the development said FedEx, which accounted for $130 million of Mphasis's $1.61 billion in revenue for the year ended March 2024, will end its business arrangement with the Bengaluru-based IT firm by the end of the year after a ten-month transition period. At its peak in FY2024, FedEx accounted for $35 million of Mphasis's revenue in a quarter; business from the logistics giant is expected to be nought by the end of 2025. Also Read: TCS revenue from Tata Group companies nears $1 billion This development could significantly impact Blackstone's plans to exit Mphasis. In 2016, Blackstone spent up to $1.1 billion to acquire 60.2% of the shares of the promoter, Hewlett-Packard, becoming the majority owner of Mphasis. In 2017, Nitin Rakesh assumed the role of CEO. Over the last nine years, Blackstone has cut its holdings to 40.14%. A loss in business from FedEx could hinder Mphasis's overall growth in the current fiscal year, making it more challenging for the New York-headquartered private equity giant to sell its holdings. Mintindependently could not ascertain the reason behind FedEx ending its over two-decade-old business ties with Mphasis. Nonetheless, FedEx is the third-largest client of Mphasis after banking giants JPMorgan Chase & Co. and Charles Schwab Corp. Mphasis's five largest clients accounted for 42% of its total revenue last year, according to the company's disclosure. JP Morgan brought in 14% of Mphasis's total business, while Charles Schwab, FedEx and two others accounted for 28%, according to an executive. Mphasis did not answerMint's questionnaire on the FedEx account and said it continues to have a 'robust and expanding pipeline." Mphasis optimistic 'As you are aware, we do not comment on individual client contracts," said a spokesperson for the company on Friday. 'We have a robust and expanding pipeline, with overall growth reaching 86% year-over-year and 26% sequentially in the fourth quarter (Q4FY25), marking the highest quarterly increase in the past 12 quarters. We also have a healthy pipeline, with non-BFS (banking and financial services) jump of 99%, significantly contributed by logistics and travel. Our large deals pipeline also saw a significant surge, rising 40% sequentially and 154% year-over-year, reflecting focused execution." Emails sent to FedEx and Accenture on 28 May went unanswered. Mphasis reported a 4.4% revenue growth last year to $1.68 billion, followed by a 6.3% revenue decline in the year ended 2024. This comes at a time when two of its other rivals have also witnessed slow business with their largest clients: Sonata Software Ltd, which ended with $1.2 billion in revenue last year, andLTIMindtreeLtd, which ended with $4.49 billion in revenue. Also Read: Tech Mahindra appoints Santosh Jha to lead GCC push amid industry-wide shift Mphasis's issue with one of its large accounts comes at a time when a few of its peers, including Sonata Software and LTIMindtree, faced problems with their large accounts. Sonata said it was likely to record lower-than-expected revenue from its 'largest client" Microsoft Corp, for January-March 2025, as reported byMinton 4 May. The sixth-largest IT firm, LTIMindtree, admitted to getting lower revenue from Microsoft as it passed productivity gains to the tech giant. Microsoft fetched upwards of $50 million and $100 million for LTIMindtree and Sonata Software, respectively. Still, Mphasis's management appeared guarded in response to questions raised on revenue decline from a top client. Explaining it away 'The decline you're seeing is not linked to any one customer," CEO Rakesh told analysts in a post-earnings interaction with analysts on 24 January, when asked about the decline in business from its largest clients. 'Some of it was expected, but it's not just one customer-led. I don't think it is constructive to over-index the conversation on 'a customer.' As I said, right, we are aware of all the speculation and the rumours. 'The talk of FedEx ramping down or cutting its partnership with Mphasis was making the rounds since last September," said a Mumbai-based analyst on condition of anonymity. 'They are trying to offset the loss through another big logistics player." This decline from FedEx suggests that large multinational companies are reassessing their tech strategies in the wake of Gen AI and an uncertain macroeconomic environment caused by US President Donald Trump's tariff reversals. Also Read: Infosys-Cognizant trade-secrets battle nears end as Dallas court passes order Last year, Mphasis's 4.43% growth was the slowest among all its mid-cap rivals, includingPersistent Systems Ltd andCoforge Ltd, which grew 18.8% and 31.9%, respectively. Worryingly for Mphasis investors, it was the only mid-cap company to report a decline in headcount, even as its rivals expanded their workforce. Mphasis ended the year with 1,222 fewer people, having 31,442 employees. To be sure, Bengaluru-headquartered Mphasis has seen a decline in business from logistics and transportation companies since March 2023. Revenue from these companies, which accounted for 13.3% of the total at the end of March 2023, comprised 12.5% of overall revenue last year.
Techday NZ
19-05-2025
- Business
- Techday NZ
Kore.ai collaborates with AWS to boost AI adoption for business
has entered into a strategic collaboration agreement with Amazon Web Services to integrate its agent AI platform and business solutions with a range of AWS services. The agreement will enable technology to work in conjunction with AWS services such as Amazon Bedrock, Amazon Q, and Amazon Connect, aiming to accelerate the adoption and deployment of AI tools for various business requirements. which was recognised as an AWS Innovation Award winner for "Generative AI/ML Market Disruptor of the Year" in January 2025, has focused on developing integrations that run on AWS infrastructure. These integrations are intended to support greater adaptability and scalability for customers, improving customer experience and operational efficiency. The Agent Platform, including solutions designed for work, service, and process automation, will also be available through the AWS Marketplace. This agreement provides AWS customers with additional ways to access, purchase, and implement offerings hosted on AWS. Raj Koneru, Founder and Chief Executive Officer of said, "We are excited to expand our collaboration with AWS, combining innovative AI agent platform and business solutions with AWS powerful cloud infrastructure. Through this strategic agreement, and AWS will bolster our existing collaborative efforts in product integration and go-to-market strategies, expediting innovation and the realisation of benefits for hundreds of our mutual customers. We are enabling global businesses to accelerate their AI adoption by simplifying the implementation of advanced AI technologies, helping them achieve transformative outcomes in today's rapidly evolving landscape." Under the terms of the collaboration, has joined the AWS ISV Accelerate Program. This enables to work closely with AWS sales teams on joint opportunities, making it easier for enterprises to deploy AI solutions via the AWS Marketplace. Both parties state that these programmes will further reinforce the partnership and support scalable adoption of enterprise AI. approach includes joining forces with partners to implement AI at enterprise scale. Nitin Rakesh, Chief Executive Officer of Mphasis, commented, "As a leading software services and consulting company, we help large enterprises around the world adopt AI technology in a safe, secure, and scalable way. We are proud to be a strategic implementation partner of and we feel especially confident knowing that foundation on AWS, delivering unmatched reliability and scalability." Chris Casey, Head of AWS Partnerships for Asia-Pacific and Japan, said, "As preferred cloud provider, we are excited to expand our collaboration and to reinforce our shared commitment to empowering customers in the AI era. The goal of this collaboration is to accelerate innovation and productivity for our customers by combining AWS cloud infrastructure with adaptable and scalable AI platform and business solutions." and AWS indicate that the ongoing partnership is intended to enhance business flexibility and unlock additional value for customers across multiple sectors by combining AI technologies with AWS's cloud services.
Business Wire
14-05-2025
- Business
- Business Wire
Kore.ai Announces Strategic Collaboration Agreement with AWS to Accelerate Enterprise AI Adoption
ORLANDO, Fla.--(BUSINESS WIRE)-- a global leader in enterprise AI, announces today that it has signed a strategic collaboration agreement (SCA) with Amazon Web Services (AWS). has integrated its agent AI platform and business solutions with AWS services like Amazon Bedrock, Amazon Q, and Amazon Connect. These integrations accelerate the deployment of AWS AI tools for a variety of business use cases. enters a strategic collaboration agreement (SCA) with Amazon Web Services (AWS) to integrate its agent AI platform with AWS services, accelerating the deployment of AWS AI tools for a variety of business use cases. Share Recognized as an AWS Innovation Award winner for "Generative AI/ML Market Disruptor of the Year" in January 2025, has developed sophisticated integrations with key AWS AI technologies. Their solutions complement AWS infrastructure by providing adaptable and scalable AI solutions that enhance customer experience and operational efficiency. The Agent Platform, including AI for Work, AI for Service, and AI for Process, is also available on the AWS Marketplace. This SCA aims to provide AWS customers with new ways to purchase and use agent platform and business solutions to be hosted on AWS. The collaboration brings together the benefits of and AWS, to help businesses deliver better, faster, and easier experiences for their customers and employees. 'We are excited to expand our collaboration with AWS, combining innovative AI agent platform and business solutions with AWS powerful cloud infrastructure,' said Raj Koneru, Founder and CEO of 'Through this strategic agreement, and AWS will bolster our existing collaborative efforts in product integration and go-to-market strategies, expediting innovation and the realization of benefits for hundreds of our mutual customers. We are enabling global businesses to accelerate their AI adoption by simplifying the implementation of advanced AI technologies, helping them achieve transformative outcomes in today's rapidly evolving landscape.' As part of the collaboration, has joined the AWS ISV Accelerate Program. Through AWS ISV Accelerate, will work directly with AWS sales teams on joint opportunities, making it easier for customers to adopt its AI-powered solutions via AWS Marketplace. These programs further strengthen the relationship between and AWS and create new paths for delivering enterprise AI at scale. 'As a leading software services and consulting company, we help large enterprises around the world adopt AI technology in a safe, secure, and scalable way,' said Nitin Rakesh, CEO of Mphasis. 'We are proud to be a strategic implementation partner of and we feel especially confident knowing that foundation on AWS, delivering unmatched reliability and scalability.' "As preferred cloud provider, we are excited to expand our collaboration and to reinforce our shared commitment to empowering customers in the AI era," said Chris Casey, Head of AWS Partnerships, Asia-Pacific and Japan. 'The goal of this collaboration is to accelerate innovation and productivity for our customers by combining AWS cloud infrastructure with adaptable and scalable AI platform and business solutions.' This collaboration underscores and AWS commitment to providing flexibility and unlocking greater business value for customers across industries. Access products on AWS Marketplace and to learn how to leverage these solutions with AWS products, contact the team About is a leading provider of advanced AI with over a decade of experience in helping large enterprises realize business value through the safe and responsible use of AI. It provides comprehensive offerings for AI work, process automation and customer service use cases coupled with an AI agent platform with no-code and pro-code tools for custom development and deployment at enterprise scale. takes an agnostic approach to model, data, cloud and applications used, giving customers freedom of choice. Trusted by over 500 partners and 450 Global 2000 companies, helps them navigate their AI strategy. The company has a strong patent portfolio in the AI space and has been recognized as a leader and an innovator by top analysts. Headquartered in Orlando, has a network of offices to support customers in India, the UK, the Middle East, Japan, South Korea, and Europe. Visit to learn more.
Economic Times
26-04-2025
- Business
- Economic Times
Mphasis to focus on large AI-led deals, says CEO
Live Events Artificial intelligence-led deals are increasing the addressable market for IT companies despite the ongoing macro uncertainties surrounding tariffs, Mphasis chief executive Nitin Rakesh AI, the shape of large deals that were there two or three years ago have changed, Rakesh told ET on Friday, after declaring the company's financial results for the fourth quarter and fiscal 2025. 'AI is changing what we are selling, how we are selling, who we are selling to and what we are delivering…Industry will lose revenues in one place and gain revenue in another place,' he Mphasis, large AI-led deals will be the focus. 'I think that $100-250 million is a great sweet spot for us…We have some mega deals that I call more than $250 million in the pipeline, but those take longer to close,' he company won deals worth $390 million in total contract value (TCV) including two large deals in the January-March period of fiscal year 2025, the highest in the last seven quarters. For the fiscal year, new TCV was $1.27 billion and 55% of this was results were in line with the ongoing IT industry trend of mid-tier companies outperforming their larger quarter saw Mphasis report its highest sequential revenue growth in three years, on the back of robust deal wins and healthy business in banking, financial services & insurance (BFSI) and technology, media and telecom (TMT) rose 8.7% from a year earlier and 4.2% sequentially to Rs 3,710 crore in the January-March quarter. Net profit grew 13.6% on-year and 4.4% from the previous quarter to Rs 446.5 IT companies like Tata Consultancy Services Infosys and Wipro have reported negative to low-single-digit revenue growth as clients went back to a cautionary approach amid confusion and uncertainties around tariffs and global trade, leading to inaction on deal to Rakesh, there is AI-led deflation in revenue across the industry and not every company will grow. But AI is increasing the kind of businesses that software service providers can go after beyond existing comes especially at a time when clients are focusing on digital transformation and cost-efficiency projects as they have tightened their spending on non-urgent or discretionary spending.'I think it's foolhardy to wait for that to happen. Waiting for discretionary spend is an endless wait. Spends will get reprioritised,' Rakesh added.'I have the opportunity to actually play in a larger addressable market…We are trying to expand the wallet share, not by playing the price game, but technology-led solution game,' he said.
Time of India
26-04-2025
- Business
- Time of India
Mphasis to focus on large AI-led deals, says CEO
Artificial intelligence-led deals are increasing the addressable market for IT companies despite the ongoing macro uncertainties surrounding tariffs, Mphasis chief executive Nitin Rakesh said. #Pahalgam Terrorist Attack India pulled the plug on IWT when Pakistanis are fighting over water What makes this India-Pakistan standoff more dangerous than past ones The problem of Pakistan couldn't have come at a worse time for D-St With AI, the shape of large deals that were there two or three years ago have changed, Rakesh told ET on Friday, after declaring the company's financial results for the fourth quarter and fiscal 2025. 'AI is changing what we are selling, how we are selling, who we are selling to and what we are delivering…Industry will lose revenues in one place and gain revenue in another place,' he said. For Mphasis, large AI-led deals will be the focus. 'I think that $100-250 million is a great sweet spot for us…We have some mega deals that I call more than $250 million in the pipeline, but those take longer to close,' he added. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo The company won deals worth $390 million in total contract value (TCV) including two large deals in the January-March period of fiscal year 2025, the highest in the last seven quarters. For the fiscal year, new TCV was $1.27 billion and 55% of this was AI-led. Mphasis's results were in line with the ongoing IT industry trend of mid-tier companies outperforming their larger rivals. Live Events The quarter saw Mphasis report its highest sequential revenue growth in three years, on the back of robust deal wins and healthy business in banking, financial services & insurance (BFSI) and technology, media and telecom (TMT) segments. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Revenue rose 8.7% from a year earlier and 4.2% sequentially to Rs 3,710 crore in the January-March quarter. Net profit grew 13.6% on-year and 4.4% from the previous quarter to Rs 446.5 crore. Large-cap IT companies like Tata Consultancy Services , Infosys and Wipro have reported negative to low-single-digit revenue growth as clients went back to a cautionary approach amid confusion and uncertainties around tariffs and global trade, leading to inaction on deal closures. According to Rakesh, there is AI-led deflation in revenue across the industry and not every company will grow. But AI is increasing the kind of businesses that software service providers can go after beyond existing clients. This comes especially at a time when clients are focusing on digital transformation and cost-efficiency projects as they have tightened their spending on non-urgent or discretionary spending. 'I think it's foolhardy to wait for that to happen. Waiting for discretionary spend is an endless wait. Spends will get reprioritised,' Rakesh added. 'I have the opportunity to actually play in a larger addressable market…We are trying to expand the wallet share, not by playing the price game, but technology-led solution game,' he said.
