New Delhi-based NIIT Technologies appeared on our radar with the appointment of ex-Infosys UK head Sudhir Chaturvedi as COO a few months back (see here). Revenues in Q3 held rock steady at Rs5.9bn (c.$95m) compared to the prior quarter but were 14% higher yoy. Operating margins expanded by over one point qoq to 16.3%, 50bps above the prior year’s level. NIIT Tech generates about 40% of its revenues from EMEA of which I estimate about two-thirds derive from the UK.
NIIT Technologies is one of the ‘challengers’ in the market for offshore IT services, alongside similar scale peers such as iGate, Hexaware, Mastek and Mindtree to name but four. All have the challenge of finding the gaps between the footprints that industry giants TCS, Cognizant, Infosys, Wipro, and HCL stamp on the landscape.
That’s not to say, though, that these challengers merely pick up the scraps that the giants leave behind. Indeed NIIT Tech recently scored a $300m, 10-year contract renewal and extension with a major US financial institution that would not look out of place on the order book of one of the larger players it beat to the deal. This is a bit of a coup for Chaturvedi whose pedigree in the finance sector (he was previously Senior Vice President and Head of Financial Services for Infosys Americas) is clearly showing through.