“DANGEROUS FANTASY” to vote 80% of productivity gains through AI in five years, says Etbrandequity CEO of Tech Mahindra

The promise of productivity gains of 70-80% led by artificial intelligence in five years, made by companies IT to their customers, is an unsustainable “dangerous bet” to be done and is “in the kingdoms of fantasy”, said the CEO of Tech Mahindra Mohit Joshi, adding that his company is adopting a more “realistic” approach to the largest globally technological theme.

“(IT) It is truly a dangerous bet to make and you can be captured with a huge effort for which you have not foreseen,” said Joshi a et in an exclusive interview. “We don’t want (we don’t want) to be captured in a situation where you do crazy hypotheses and therefore you are not able to invest in the sector … We should be aggressive, but we should be in the kingdoms of fantasy.” This derives from the moment in which several items of IT companies have said that the IA is cannibalizing revenues and are transmitting the benefits of productivity guided by customers to caress the offers.

“We will not enter the game of” growth at any price “, because then you end up seriously compromising your margins or doing the wrong thing by employees, cutting the variable salary or heavily cutting compensation,” said Joshi.Joshi rejected the news of growing senior leadership exits during his mandate, stating that there were role -playing reconfigurations but not many outings. “The attractive rate on top was less than what it would normally do (being seen) in a company, the number of elderly people who left us will be less than the number of senior people who left Infosys, Wipro, Tcs and Hcltech, despite the changes we have had.”

“In the last year, only one person has remained actually, and if you look at the addition of talents, much of this has been in roles that have never existed in the past,” said Joshi, referring to the creation of roles such as Chief Operating Officer, Chief Transformation Officer, Chief Technology Officer and head of consultancy in society.

He said Abhishek Shankar, president of Techmahindra’s communication activity, Americas, resigned. But others like the former head of the staff of Joshi Abid Mirza and Ram Ramachandran, who managed the activities in India, the Middle East and Africa of the company based in Dubai, moved to new roles and locations within the company, said Joshi. Likewise, Vikram Nair who retired to the European region withdrew and then took on a different role within the Mahindra group.

Since he took over as CEO in January 2024, Joshi has renovated the organization, has introduced leadership talents and has launched a three -pointed strategy focused on revenue, margins and organizational culture. The roadmap is aimed at 15% of the EBIT margins and 30% of the capital yield used (roce) by the year27. Joshi said that attention is shifting from the recovery of the margin to high -level growth. Tech Mahindra is trying to move the gears in exercise 26, banking on the operating discipline, the re -ilatoation of the talents and a complete strategy for doing business to push growth in a slow IT environment.

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