Global IT services organisation Tech Mahindra has entered the South African market through a joint venture (JV) with local company Falcorp Technologies.
The company, which specialises in the telecommunications market, already has a footprint across Africa, with about 2 400 employees on the continent.
The local operation, Tech Mahindra SA, will kick off with about 30 employees, with a target of about 350 within a couple of years.
Girish Bhat, VP for Middle East and Africa at Tech Mahindra, tells IT-Online the company hopes to sign its first South African contracts within the next month or so.
Although the local operation will focus on the South African telecommunications market, Bhat says it may expand over time to cover neighbouring states as well.
The company’s value proposition to customers, he adds, is to help telecommunications operators to monetise their data centre operations through cloud-based services, security and enterprise mobility applications.
Africa currently accounts for about 2% of Tech Mahindra’s revenue, Bhat adds, but this is expected to increase to 5% within the next 18 months.
“Africa is a focus sector for the Mahindra group,” he says. “We see this is an emerging market and there is a lot of focus on it.”
Tech Mahindra plans to staff the local operation with mostly local employees, who will receive training in India as well as skills transfer in the field.
The company plans to help create local job opportunities and invest heavily in skills development, and employment equity, over a period of six to 12 months.
As part of the B-BEEE strategy, the company will target to have approximately 65% in local preferential procurement, a corporate social investment plan, and a leadership and internship programme.
A dedicated Talent Exchange Program for the transfer of skills between India and South Africa will also be initiated.
Rikash Hurdeen, MD of Falcorp Technologies, says his company has been in talks with Tech Mahindra for the past two years.
He says the partnership is positive for Falcorp in that it opens up new opportunities for the company and for the country, in terms of building skills and local capacity.