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In Focus

Rajeev Papneja, Chief Growth Officer

ESDS Software Solution

With cloud at the foundation, AI is the de facto emerging tech.

With the COVID-19 pandemic continue to govern the global economic situation and forcing businesses to adopt digital ways to achieve greater resilience, enterprises are swiftly moving to cloud services, resulting in a stratospheric demand for data center space.

In a recent interaction with Jatinder Singh of Better World, Rajeev Papneja, Chief Growth Officer of ESDS Software Solution, a Nashik-based managed service provider and data center company, outlines the latest data center trends, the company’s focus areas, and new opportunities presented by digital transformation acceleration.

Excerpts of the interview:

Better World: The last twelve months of enforced shutdowns and social distancing measures have silenced digital transformation critics. With a few exceptions, digital transformation is the only way for most businesses to get successful.  In this context, what are the new opportunities that you see in this digital-only environment?

Rajeev Papneja: ESDS is a cloud company, which is now evolving into a digital transformation catalyst. When we say digital transformation, what is happening is that it is no more just a cloud. Cloud is just one essential part of digital transformation. The emerging technologies at the top (such as artificial intelligence) and new business models create a new business way in these challenging times.

During the pandemic, we saw that people want to work more with Indian companies. There is a change in mindset, mainly because India could better navigate the crisis than many countries. Many Indian companies were dependent upon Europe for their data centers and China for manufacturing. As the COVID-19 situation worsened, they witnessed massive upheaval in their supply chains.  When the supply chain got troubled, they realized it is better to work with Indian companies because, from a supply chain standpoint, our country is better shaped now as the government started promoting indigenous manufacturing setups.

While COVID-19 presented numerous challenges for organizations of all scales, they also unboxed an era of new opportunities for many new-age thinking companies willing to experiment and refresh themselves to meet new-age consumer demands.

Many startups are emerging, and customers are now willing to work with them because of this mindset shift. SaaS and IaaS are picking big time, and many of the companies are moving to the cloud for the first time to support their growing digital businesses. This has created new opportunities for us.

Like many other modern companies, ESDS has transformed itself to meet the new-age demands and help its customers win in these challenging times.

Today, we have more than 35 to 40 software offerings for our customers in different sectors. They will keep on growing as we are seeing more demand for SaaS now. Of course, the Infrastructure will keep growing because people have realized that all these big companies who have their own data centers went into so much trouble during the lockdown. People are not going to the offices, data centers and need to adhere to the social distancing guidelines for an indefinite period.  This has made enterprises realize that it is better to be with commercial data centers in India.

Better World: How do you see the role of AI and machine learning evolving in smartening up data centers?

Rajeev Papneja: Artificial intelligence is becoming the de facto emerging technology while cloud computing forms the basis. If you look at machine learning, artificial intelligence, blockchain, and quantum computing, you will see that they are powered by cloud technology. So, fortunately, we were in that space, and our foundation has been solid. At present, the enterprise ecosystem is moving into a very different environment, where a standalone data center cannot provide everything. So, for example, you might want to have, let’s say, vertical auto-scaling for a specific workload and Microsoft 365 for your productivity needs. That is not something that we offer directly. So, you are directly or indirectly working with multiple technology partners for their unique offerings. Similarly, for specific workloads, we are working with Google Cloud or Amazon cloud. 

Rajeev Papneja, Chief Growth Officer, ESDS Software Solution

Rajeev brings to the table vision, purpose, relentless passion for technology, and life of spirituality. He has over 24 years of extensive technology, systems, and software experience on an international scale, including more than a decade of senior management experience in the United States.

He has worked as a senior consultant at major corporations like United Parcel Services, Ernst & Young, Dun & Bradstreet, to name a few, before becoming an entrepreneur.

His longest tenure was with Pfizer Pharmaceuticals, the largest drug manufacturer in the world with its current headquarters in New York, where he spent more than eight years providing enterprise class technology solutions and setting up financial processes.

Awards

  • GEM of India
  • Bharat Gaurav
  • Bharat Ratna Dr. A.P.J. Abdul Kalam Excellence Award

Education

  • Doctorate in Business Administration, Frederick Taylor International University, Arizona, USA, 2001 – 2004
  • Masters in Computer Science, KTHM College, Nashik, 1994-96

So, we have entered a different era, where you will see that it will not be about just working with one data center.

Artificial intelligence or machine learning, or all these newer technologies, have forced themselves into the system of any enterprise ecosystem that you look at today. The only way for enterprises to survive today is by transforming their business models, understanding their customers’ needs, and providing exceptional experiences. These technologies are enabling enterprises to make that change.

As we advance and AI and ML, robotics will play a crucial role because of companies’ continuous pressure to strengthen processes and deliver exceptional customer experiences.

Better World: Who are your major clients in India?

Rajeev Papneja: Today, ESDS is serving more than 225 governmental PSU customers, the most significant initiatives of the prime minister, and our governments, for example, the Ministry of road transport, right. All the tools we are paying for today across the new range are different from our data center. If we talk about the world’s largest smart meter project, Energy Efficiency Services Limited is replacing 250 million smart meters, all running from our data center.

The banking sector is a big focus area for us. We are working with over 400 banks, many of which are small cooperative banks. We are constantly launching new SaaS and PaaS offerings for government and banking clients. We are integrating technologies such as AI and ML in our data center offerings. None of our customer’s security is ever compromised.

Better World: That’s an exciting statement from you that none of your customers, especially in banking, have ever witnessed a data security breach. How have you been able to secure your customer’s sensitive data consistently?

Rajeev Papneja: Most of the time, you see the security compromises happening in banks. They are on-premise databases. We need to understand security because it is challenging to attack something you don’t know. And that is what cloud technology gives you. You don’t know where your data when you don’t know where your information is; how will you attack something?

Second, the most significant vulnerability today is an insider threat. Most of the threats you would have seen, or the data leaks that have happened are their sheer size.  For us, it is only zero and one. We don’t know what is there. It doesn’t make sense to us.

All these big government customers are utilizing our security operation center (SoC) as a service (SoC), all the cooperative banks are using our SoC as a service. We also have our tools that are used by many of the nationalized banks. For example, our VTMScan tool, which is a complete web scanning tool. It scans all forms of online threats and vulnerabilities.

With ransomware attacks happening with zero-day attacks happening, we use advanced AI-ML based science to deliver actionable intelligence to ensure speedy mitigation for security incidents. Another offering is eNlight WAF, a specially engineered intelligent cloud hosted web application firewall helping businesses filter incoming and outgoing internet traffic and block threats such as injection, cross site scripting and other attacks.

We’ve also launched SPOCHUB, which is a plug-and-play platform providing industry-specific offerings On Click. It enables the ISVs to display their offerings across the Globe with an “Omni Channel Proposition.”

Overall, we’ve at least 10 to 12 integrated tools that are combined. And of course, human intelligence, as I saw, is how we run our security operations. All the services offered within SoC are a service and subscription-based model. They follow an OPEX model rather than CAPEX by cutting down unsolicited costs.

Better World: Which are some of the most significant trends that you foresee, both from a data center perspective and an overall technology perspective, in the post-Covid environment?

Rajeev Papneja: One thing is for sure that people have embraced the cloud entirely. As we progress, software as a service is going to be very, very big. Going by the various market reports, in the next four years, the market for Infrastructure as a service will be $5 billion.

The market for multi-cloud management services is $10 billion. This, this is I’m only talking about India. If you look at security services, that is also around $2 to $3 billion. The digital transformation industry itself is $700 billion. It encompasses all the different applications that will help these industries evolve their business models to make their processes better, such as collaboration tools. We are currently seeing that people immediately flocked to VDI technologies, to web VPN, to CRM applications to Enterprise Resource Planning, and collaboration tools in digital transformation. These are widely accepted. And people have started moving to the cloud. As we advance, you will see that people will start exploring how we can make our business models, something like, you know, they call it everything as a service takes a so I’ll give you a small example, that there is this company, right? It’s from it’s changing the mindset from selling a product to selling a service.

Whatever mindset or analytics on historical data you could do before COVID does not work in the post COVID era. It has an entirely different perspective. But the good news is, all businesses have the same starting point today. No matter where they were in their journey, they are forced to have an identical starting point. Now whoever takes benefit of this digital transformation they are going to be successful.

Better World: What are your outside India expansion plans for 2021 and beyond?

Rajeev Papneja: Right now, we are already present in the UK. We have two web hosting companies in the UK. We are serving more than 20,000 web hosting customers in the UK. We have a small presence in the US which we never focused on earlier. We will be focusing on the US, also started in the Middle East. We have an office in Dubai we have in Bahrain. We are working on specific opportunities in Bahrain, Dubai, Oman, Egypt, Nepal, Bangladesh, and Utopia. So, there are around 17 countries that we are focusing on. We have already built a data center for unique customer needs. So, what we are seeing is that you know, these countries are where India used to be eight years back. So, for example, if you look at Dubai, they have just started their cloud journey.

Still, companies prefer to use on-premise IT infrastructure. Now, we want to leverage our expertise, whatever we have done in the last eight years for India. We want to make sure that these upcoming countries starting with technology can feel empowered with our unique offerings and technology.

MORE FROM BETTER WORLD

AWS pumps $2.77 bn in India to retain cloud supremacy

AWS pumps $2.77 bn in India to retain cloud supremacy

Amazon Web Services (AWS) has committed US $2.77 billion (INR 20,761 Crores) to strengthen its cloud infrastructure services in India. Amazon’s cloud computing arm will use this money to launch a new cluster of data centers in Telangana, Hyderabad.

“Happy to announce the largest Foreign Direct Investment (FDI) in the history of Telangana! After a series of meetings, AWS has finalized an investment of Rs 207.61 bn ($ 2.77 bn) to set up multiple data centers in Telangana. The @AWSCloud Hyderabad Region is expected to be launched by mid-2022,” tweeted Telangana state minister for information technology and industries, KT Rama Rao (KTR).

Within its lexicon, AWS identifies its data centers cluster as Availability Zones. AWS set-up two data centers in Mumbai in 2016. It added another data center in Mumbai last year. Across the Asia Pacific, AWS already has 26 Availability Zones spanning India, Australia, Greater China, Japan, Korea, and Singapore.  

The investment will further enable AWS’s position as a leader in India. AWS currently has around 30% market share of India’s cloud service market, followed by Microsoft’s Azure.

AWS leases server space and bandwidth to enterprises of all sizes with cloud computing capabilities. This allows businesses to accelerate their digital transformation goals without building up their in-house servers or data centers.

Growing cloud services market in India

Over the last few years, Indian enterprises are quickly embracing cloud computing services to upsurge agility, deliver innovations, and modernize their infrastructure. With businesses focusing on well-carved out cloud strategy in the wake of the digital transformation rush, there is a bigger emphasis on getting experts on-board who have the experience to help organizations prepare for a new tomorrow. (See: Bharti Airtel gears up for digital transformation opportunities and IBM to split into two companies for better cloud opportunity)

The pandemic-induced work-from-environment has made the market even more lucrative, and cloud players are taking strong initiatives to strengthen their presence in India. These fast-evolving dynamics have made India one of the biggest and fastest-growing cloud services markets in the Asia Pacific, which is likely to touch $10 billion in another five years. Industry body NASSCOM projects that the market will grow to $7.1 billion by even 2022. (See: Technology trends for businesses in 2020)

The top players dominating the Indian market include Microsoft, Amazon, IBM, Google Cloud, and Nutanix. Amongst all, Amazon and Microsoft are leading the market and intensely vying to be the market leader in India’s cloud services market. While AWS’s position at the top is indisputable, both Azure and Google are growing at a remarkable rate, posing a threat to Amazon’s dominance in the cloud services space.

Early this year, Amazon and Bharti Airtel, India’s leading telecom player, entered into a strategic collaboration to deliver cloud computing solutions to enterprises. The partnership was formed to combat a similar engagement announced by Microsoft and Reliance Jio to provide enterprise cloud solutions powered by Microsoft Azure.

AWS had the first-mover advantage as it started its operations seven years earlier than many of its competitors. It gave Amazon an opportunity to get its offerings tested and make it more functionally rich as compared to the others.

In August 2019, Amazon inaugurated its biggest campus globally in Hyderabad, which supports 15000 employees. Through its AWS Academy and AWS Educate initiatives, AWS has also been providing ready-to-teach curriculum to higher universities in India to upskill local developers, students young IT professionals.

AWS’s client in India includes Ashok Leyland, Aditya Birla Capital, Axis Bank, Bajaj Capital, ClearTax, Dream11, Druva, Edelweiss, Edunext, Extramarks, Freshworks, HDFC Life, Mahindra Electric, Ola, Oyo, Policybazaar, Quantela, RBL Bank, redBus, Sharda University, Swiggy, Tata Sky, YuppTV, Zerodha, and several others.

AWS registered a 29% year-on-year growth in revenue to posting $10.8 billion in revenue in the second quarter of 2020.

 

 

 

RPA-led tools helping enterprises sail safely through a storm

RPA-led tools helping enterprises sail safely through a storm

The unprecedented COVID-19 environment has thrown up several challenges for industries across the globe. The growing distributed workforce environment is pushing businesses to deploy new-age digital operational methodologies to deliver a tailored and personalized experience to their customers.

Amidst the digital transformation wave, a technology that has been swiftly gaining ground worldwide to enable businesses to revolutionize their conventional processes is Robotic Process Automation (RPA). The pandemic has made organizations rethink their operational models and integrate artificial intelligence and automation in their processes to ensure that there is no pause.

Incorporating AI and machine learning capabilities, RPA uses software robots that allow organizations to automate multiple high-volume, repeatable tasks. It includes calculations, approvals, invoice creation, server maintenance, merging data from other sources, and copying and pasting data.

There is a growing emphasis on deploying digital bots to reduce employee workloads and accelerate business transformation. Through the RPA bots, organizations are able to empower their employees to concentrate on productive tasks and respond to new challenges more effectively.

Customer centricity driving new automated models

Business process management solutions are widely adopted to streamline processes and transforming enterprise value propositions. Customer-centricity is a highly discussed subject today across the CXO boardrooms, and businesses are rapidly exploring the best ways to cut down on time lost on repetitive tasks.

By automating a business process, organizations can minimize work as it enables them to provide round the clock support to their clients from the bots.

At Better World, our recent interactions with several technology leaders and senior executives suggest that approximately 15 to 20 percent of all human hours are unexploited across industries due to repetitive tasks. The ratio is even higher in the IT sector, where about 25 percent of working hours are lost due to repetitive transactional tasks. With RPA enabled tools, companies can let employees focus on high-quality tasks with better efficiency and productivity. (See: Anshuman Tiwari, Global Head of Delivery Excellence, DXC Technology)

The RPA workforce comprises different software robot levels, performing monotonous and admin-driven tasks at an exceptional speed with minimal human intervention. Take the case of German automaker Volkswagon in India. Its Indian arm has substantially leveraged the capability of RPA to transform several of its processes. From its finance department to the customer service department, the company has automated over 80 processes successfully through RPA tools. Amongst the highlights, it deployed a bot to help its customer service team fetch real-time data that can be utilized to address customer queries.

A similar case in point is Thomas Cook India, a leading travel management firm. To navigate the lockdown-induced disruption, the company partnered with an RPA solution provider, ‘Automation Anywhere,’ to support its virtual workforce and drive automation in several of its processes.

Sectors such as BFSI, healthcare, and travel are aggressively exploring the best ways to implement software bots to improve their bottom lines and automate back-end operations.

Mushrooming market          

In India, RPA growth has been primarily driven by the need to optimize various back-end processes in accounting, IT operations, and human resource management. Many companies are finding it tough to keep up with the increasing demand for services in an environment filled with anxiety. And this is where technologies like RPA are creating a strong impact.

According to several industry estimates, in the next four years, the RPA market is expected to reach around $80 million in the country, helping organizations manage growth in a sustainable manner. 

The RPA vendors are expanding their presence in India, and 2021 will be a crucial year for this technology to thrive in the domestic market. The industry onlookers expect several rounds of consolidations and collaborations that will strengthen the RPA models in the country.

Besides top vendors like UiPath, Automation Anywhere, Blue Prism, and WorkFusion, several exciting startups are gearing up to make a mark in the RPA space. Most of the vendors are investing heavily in research and development efforts. There is an increased push to launch ready to deploy bot solutions that can quickly take on human-intensive transactional work.

 

 

 

Intel’s AI investments in India have these strategic goals

Intel’s AI investments in India have these strategic goals

Intel is taking strategic steps in the Indian market to build a competitive advantage through artificial intelligence (AI) investments. The US-based semiconductor giant has been taking a holistic approach to developing an AI ecosystem by partnering with several leading academic institutions and governments on national AI programs. The company intends to develop a rich pool of AI talent that can help it achieve greater efficiencies and act as a catalyst to fast-track India’s AI vision.

Artificial intelligence has intrigued everyone with its vast capacity to propel a transformative new world. The concept includes deep learning, machine learning, and predictive analytics technologies that enable organizations to gather more data, analyze it, and automate processes. (See: AI in banking now geared for a takeoff and CIOs to focus on network transformation for business continuity)

Amidst the digital transformation wave, AI holds a huge potential to address several challenges of the Indian economy, comprising, healthcare, disaster management, and smart mobility. (See: AI is a must now to speed up digital transformation)

Taking an all-inclusive AI approach in India

Intel has been at the cutting edge of the AI revolution. As AI is becoming mainstream, it has been widely used in developing technologies and apps in speech recognition, virtual agents, machine learning platforms, cyber defense, biometrics, and facial recognition. (See: India gears up for AI leap in post-Covid-19 era)

With 5G technology at the doorstep, Intel, through its initiatives, preparing coders, data researchers, and analysts for the future of artificial intelligence-based technologies.

More emphasis has been given to increasing the computing power of diverse processors while simplifying their architectures. And none of this can happen without a solid talent pipeline. The company has launched programs such as AI for Youth, an initiative to prepare India’s young talent on AI-skills and Intel AI academy.

Last July, Intel invested US$253.5 million in India’s Reliance Jio platform. It is expected that this investment will support Jio’s future university projects. The next university will likely offer programs about future technologies, such as artificial intelligence, data science, and digital media.

Last month, Intel teamed up with IIIT Hyderabad, the Public Health Foundation of India, and the Telangana government to launch an applied research center in artificial intelligence. AI-powered solutions need significant capacity and power to match application demands. Intel is rapidly developing capabilities to meet the scope of AI’s future workloads.

Thanks to its AI developer education program, Intel has already trained Indian professionals on AI platforms like Machine Learning and Deep Learning. Another key initiative run by the global tech major is “Responsible AI for Youth,” which focuses on promoting artificial intelligence among Indian school students.

Attempt to win the AI race

In the post-COVID-19 world, a robust ecosystem supported by powerful computing capabilities is needed to speed up the technological change in all companies. This is where the technology company like Intel is attempting to make a difference.

Amidst growing digital transformation focus, data analysis, and innovation based on artificial intelligence have been used extensively by India’s growing e-commerce and research sectors. The tools are being rapidly deployed to understand the new digital behavior and demand trends. Besides, manufacturing firms have started to use the benefits of AI tools to control quality, reduce the size of the design team, and build predictive models for supply chains. Then, there is the healthcare sector, where AI-based tools are being used to improve diagnosis, treatment, and patient monitoring. (See: How artificial intelligence is transforming Indian retail sector)

Throughout the world, Intel has been making aggressive investments spanning technology, research and development, and collaborations with enterprises and governments, enabling efficient decision making based on algorithms. Early in May this year, Intel’s funding arm parked aside $500 million for investments in several startups that operate in business data and analytics.

In October this year, Intel purchased SigOpt, a San Francisco-based provider of a cutting-edge platform to optimize Artificial Intelligence (AI) software models at scale. Intel announced its intention to use SigOpt software technologies across Intel Artificial Intelligence hardware products to accelerate, amplify and extend Intel Artificial Intelligence software solution offerings to developers.

Intel’s latest efforts are in line with developing production-ready solutions for various enterprise-wide deployments. The company recently introduced its 3rd Gen Xeon Scalable processors and additions to its hardware and software AI portfolio to help its customers accelerate artificial intelligence (AI) and analytics workloads running in the data center, network and intelligent-edge environments.

In 2019, Intel gained over US$3.8 billion through AI-based solutions. With the AI market expected to become worth more than $30 billion in the next 3-4 years, Intel seems to be going in the right direction to capitalize on the opportunity.

Salary hikes at IT firms on cards as COVID disruption eases

Salary hikes at IT firms on cards as COVID disruption eases

Buoyed by the early signs of enormous digital transformation opportunities and demand for cloud-based solutions, salary hikes at IT firms in India appear to be returning ever since the COVID-19 disruption had made an adverse impact.

The COVID-19 led economic slowdown resulted in a monumental setback for many tech companies across the world. Low visibility of revenue growth and market gloom resulting from the pandemic forced India’s IT majors to suspend employee salary increases and promotions earlier this year. The decision was taken to control operational costs and provide business continuity, even during the crisis.

However, with optimism returning to the sector, salary hikes at IT firms, along with promotions across all grades are being considered by top Indian tech majors such as TCS, Infosys, HCL, Wipro, and Tech Mahindra. 

Timeline considered for salary hike at IT firms in India

Company               

Revenue in Rs crore (FY2020)

Current headcount

Salary hike effective from

TCS

1.62 lakh

453,540

1 October 2020

Infosys

93,594

240,208

1 January 2021

HCL

71,265

150,000

1 October 2020 (Junior staff)

1 January 2021

(Senior staff)

Wipro

63,862

180,000

1 December 2020

Tech Mahindra

38,060

125,000

Early 2021

Transitioning to the new normal

At the beginning of the year, most businesses put their energies on deploying a thriving remote work environment and delivering consistent services.  However, beginning in the second quarter, companies have accelerated the implementation of digital transformation solutions and increased spending to meet customer expectations to remain competitive in the current environment.

These evolutionary dynamics are having a positive impact on these tech majors. Tata Consultancy Services (TCS) was the first Indian IT major to announce a salary increase for its 453,540 employees as of October 1, 2020. Quickly after the nationwide lockdown announcement, TCS rolled-out Secure Borderless Workspaces Framework, which instantly enabled 90% of its employees to work effectively and meet client expectations remotely. TCS’s consolidated revenue from operations for Q2 stood at Rs 40,135 crores, clocking a 3% year-on-year growth.

The IT Major deferred salary increases in April this year to ensure that employees are not laid off.

For over 2,400,000 Infosys employees, salary hikes are expected to stay the same as in previous years. In recent years, Infosys has rapidly increased its digital and cloud capabilities that have helped it reach 2.2% revenue growth year-on-year, even in challenging times. The company is banking big on the large-scale digital transformation deal wins that materialized recently to accomplish higher than the average growth in the upcoming quarters. (See: Infosys buys GuideVision to boost Dx capabilities)

HCL tech joined the list recently by announcing salary hikes for its junior staff from October 2020 and senior staff from January 2021. The company’s net profit stood at Rs 3,142 crore for the September quarter, up 7.4% sequentially, and 18.5% year-on-year.

India’s fourth-largest IT Services provider, Wipro, witnessed a strong second quarter, which resulted in better margins and robust revenue growth. It celebrated the performance by announcing salary increases from December this year for 80% of its 1.85 lakh workforce. Throughout 2020, the company made a significant investment in acquisitions that could lead to substantial gains in the fiscal year 2022. (See: With Encore buy, Wipro eyes DX edge in fintech)

Tech Mahindra has announced that its employees’ salary increases will begin next year on a phased basis. The company states that the hikes for junior-most employees will be implemented first, followed by senior employees.

Big boost from fast-track digital transformation roadmaps

The sudden spike of COVID-19 cases compelled organizations to enforce fully work-from-home environments. To minimize the impact and support customers virtually within the new standard, organizations have stepped up their digital engagement strategies. The pandemic’s complex challenges are placing large and small businesses in a delicate situation that can only be solved by redefining work and developing agile business models.

During COVID-19, organizations’ dependence on digital solutions, has peaked at new heights, and at BM NXT research, we do not see the interest in digital technologies waning even when the pandemic ends. Businesses worldwide are expected to harness digital channels and continue modernizing their IT infrastructure to innovate faster and reimagine the business landscape. (See: AI-driven analytics is CIOs’ mantra in the new normal)

Going ahead, there will be a continuous rise in the adoption of cloud-based solutions and new-age technologies such as machine to machine (M2M),  artificial intelligence, Robotic Process Automation (RPA), and data analytics amongst enterprises. Almost every industry and sector will need to identify new seamless digital communication channels to interact with their customers. This will further open up new revenue and growth opportunities for the IT Services firm to help enterprises build their digital resilience for any such future incident.

 

With Encore buy, Wipro eyes DX edge in fintech

With Encore buy, Wipro eyes DX edge in fintech

Indian IT Services major Wipro continues its acquisition run this year to strengthen its digital transformation and cloud capabilities. After acquiring 4 companies earlier this year,  Wipro has now entered into a decisive agreement to buy Encore Theme Technologies, a SaaS and Cloud solutions provider in financial services, for INR 95 crores.

Headquartered in Chennai, Encore Theme implements a broad suite of Trade Finance solutions, developed by Finastra, one of the world’s largest fintechs to bolster digital transformation support for financial institutions across the globe. The purchase will enable Wipro to further fortify its capabilities to modernize the IT and digital infrastructure of financial institutions.

Encore buy

The acquisition of Encore Theme is subject to customary closing conditions and likely to close in the quarter ending December 31, 2020, Wipro mentioned in a statement. This transaction represents Wipro’s fifth buyback this year, with an overall investment of INR 18 bn in purchases in 2020.

Businesses are taking rapid transformation routes toward next-Gen integrated cloud technologies such as artificial intelligence, the internet of things (IoT), and analytics. To successfully overcome the ongoing crisis and emerge stronger in the growing virtual ecosystem, enterprises seek smarter IT environments and accelerating their digital transformation efforts.

IT services companies realize the importance of network transformation-related investments that can help meet growing clients’ needs to construct agile, integrated, and insights-based network architectures. This brings a unique opportunity for the IT Services firm to bring more value to businesses.

Along with Wipro, several other IT Services firms such as Infosys and HCL are on an acquisition spree this year, utilizing their cash reserves to fortify their digital transformation and cloud offerings. (See: Infosys buys GuideVision to boost Dx capabilities)

Supporting networks modernization

Wipro’s aggressive push toward acquisitions is also likely to lead to increased investor confidence in the future. Wipro is now having much more capacity and packaged offerings to deliver its services to enormously investing in IT infrastructure modernization.

This year, Wipro’s notable acquisitions include 4C, IVIA Serviços de Informática Ltd, and Eximus Design. (See: Wipro’s 4C buy to firm up its Europe presence)

Along with the latest Encore buy, Wipro also announced its plan to expand its strategic relationship with IBM to strengthen its Hybrid Cloud Practice. The practice is an initiative led by IBM to support global system integrators and independent software vendors to enable their clients to modernize workloads for any cloud environment.

In its Q2 results announced last month, Wipro posted a 3.2 percent sequential growth in consolidated profits and 3.7 percent QoQ growth in IT services revenue, ahead of the previous industry estimates. The results reflected strong growth across all its verticals.

At BM NXT research, we expect Wipro’s revenues to get a significant boost in the next two to three years because of its strategic investments this year and the organization’s continuous efforts to build capacities for remote working. Wipro, however, will need concrete execution efforts to gain a larger market share than its peers in the industry.

How artificial intelligence is transforming Indian retail sector

How artificial intelligence is transforming Indian retail sector

As the pandemic raged on, enterprises of all scales rushed to accelerate their digital transformation efforts for maintaining business continuity. The retail sector also didn’t escape unscathed and had to take a flurry of measures to remain operational amidst rising discretionary spending by consumers. (See: AI-driven analytics is CIOs’ mantra in the new normal)

The crisis has pushed the retail organizations to take pivotal digital decisions instantly to achieve tangible business results.

One of the technologies that has garnered much attention in these tricky times is Artificial Intelligence (AI). The technology enables organizations to make well-informed data-driven decisions and predict the possible outcome of those decisions.

Translating new normal into a winning position

There is a monumental shift in consumer buying behavior due to COVID-19. Even traditional brick-and-mortar businesses are moving to e-commerce platforms. The pre-COVID online buyers have accelerated their digital shopping by around 50%. Moreover, even a majority of conventional shoppers have moved to virtual shopping to ensure safety and hygiene.

Amidst the unpredictable customer expectations and increased demand for contactless distributions, the Indian retail enterprises are fast-tracking their investments in technologies such as artificial intelligence to translate the new normal into a winning position. With AI-enabled tools and customer-centric chatbots, retail enterprises can obtain valuable insights to predict new business opportunities, identify broken supply chains, and manage customer expectations better. (See: AI is a must now to speed up digital transformation)

According to a Nasscom study, the Indian retail industry is one of the top-five retail markets in the world by economic value and likely to achieve 3X growth and become worth US $1.4 trillion by 2024. NASSCOM further observed that the industry is experiencing a phenomenal transformation due to transitioning consumer behavior, organized retail growth, and multiple global players’ arrival.

Similar sentiments are shared by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), an apex trade association of India, in a recent report. The industry body observed that the Indian retail industry is likely to see a massive transformation technology-led disruptions driven by AI and data-led opportunities.

Besides improved customer experience, the investments in AI-enabled platforms will also be valuable for retailers as it will enable them to deliver new product design ideas and expand their markets.

Leveraging AI to read consumer’s mind

With consumers are moving to digital technologies to shop, they still need the personalized experience to meet their custom needs. AI-enabled tools and technologies are being leveraged by organizations to identify key business and customer trends; ensure hygiene; deliver the goods safely, and conduct 1:1 session with customers.

AI tools also have a great potential to give the decision-makers timely visibility to align their strategic and financial primacies with these predictions.

Some prominent Indian retailers are already forging ahead and deploying the latest tools and AI innovations to navigate the crisis. An example is the Aditya Birla Group, which manages one of the largest Indian clothing retail chains. The group implemented several AI and deep learning solutions amidst the pandemic to keep its workforce safe and ensure hygiene factors at its manufacturing units. The group has a separate data and analytics cell, which focuses on advanced technologies to deliver better efficiency in-house as for customer service excellence.

During the nationwide lockdown, the group refreshed its already proven proprietary AI platform, VEDA (Video Enabled Decision and Alerts), with advanced capabilities to meet the manufacturing units’ needs and offices post COVID. The scalable platform enables Aditya Birla Group to deploy multiple video feeds and apply advanced analytics in real-time to develop meaningful interpretations, notifications, and alerts.

Similarly, online retail players such as Amazon, Big Basket, and Grofers have enhanced their AI-powered chatbots, who act as online experts and provide instant resolution to various transactional and routine queries raised by different consumers. For complicated and specific requests, the question can be re-routed to customer care. This entire approach not only automates the process but also help companies reduce their operational expenses.

Another critical area where analytics can be a crucial enabler is inventory management. By looking at the vast sets of shopper data, retailers can oversee purchase orders, ensure they have enough stock of a particular product, and keep their inventory model agile as per the market demand scenario.

Nevertheless, to climb the AI-maturity ladder, enterprises would need to set-up a conducive framework and need strong collaboration models with subject matter experts to address the evolved customer requirements. (See: Enterprises jump on the AI bandwagon but seat belts are few)

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