Tech Mahindra Plans More Facilities in the US and Canada

Tech Mahindra Ltd will build more technology development facilities in the United States and Canada and boost local hiring to tap new business opportunities linked to digital technologies, its chief executive officer said on Wednesday.

"We are investing heavily in building local delivery centres in the United States and in Canada. We've opened two in Canada and six in the United States over a period of the past six or seven months," C.P. Gurnani told Reuters in an interview.

Gurnani said the company was investing more on building new facilities in the United States, its largest market, for faster delivery of services to clients and to address their changing technological needs.

The Tech Mahindra chief executive declined to give details on the hiring outlook, but a person aware of Tech Mahindra's plans said the company was planning to hire about 100 in each quarter in the United States.

Companies in India's $150 billion (roughly Rs. 9,34,600 crores) IT outsourcing industry operate most of their facilities in India and use a large pool of qualified, cheaper workforce to provide services to clients in the United States and Europe.

"We need to interact with clients at a much higher frequency and have more intense discussions between business, technology process and the market. That loop has to be faster and that's why we need to be closer physically," Gurnani said.

"This adds to our expenses, but I am hoping our clients understand the value that comes with it."

© Thomson Reuters 2015