Mastek CEO Umang Nahata Confirms No Workforce Reductions Despite Attrition Trends

Mastek, a mid-tier IT firm, is not planning any workforce reductions despite ongoing changes in the tech industry, according to CEO Umang Nahata. The company’s workforce has decreased from 5,500 to 4,800 over the past year due to attrition, and many roles have not been refilled. Nahata mentioned that while most attrition was voluntary, some may have been involuntary.

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Revenue Growth and AI Focus

The company aims for mid to high double-digit revenue growth, driven by strong performance in the UK and North American markets. Nahata stated that Mastek is focusing on increasing revenue per resource. The entire workforce is now trained in AI-related skills, with nearly all work being digital. In April-June, Mastek secured deals worth USD 16 million, all related to AI.

AI Adoption Services Strategy

Mastek is concentrating on offering outcome-based AI adoption services to mid-tier clients who might not usually work with large system integrators or consultants. This approach addresses concerns about returns on AI investments and platform selection challenges. The company is also considering tuck-in acquisitions of complementary firms, though Nahata noted the difficulty in identifying suitable targets due to evolving technology.

Stock Performance and Market Perception

On Thursday, Mastek celebrated 30 years of being listed on stock exchanges by ringing the bell at NSE. Despite a significant decline in its stock since December, Nahata attributed this to perception issues rather than performance. He pointed out that the stock's trading multiples are low compared to peers. On Thursday, Mastek's shares fell by 2.10% to Rs 2,415.95 on BSE, contrasting with a 0.36% dip in the benchmark index.

Nahata's comments follow TCS's recent announcement of a 2% job reduction affecting 12,000 employees. This move has sparked concerns about tech job security amid rising AI and automation adoption. However, Mastek remains committed to its current workforce size without plans for cuts of 2% or 5%.

With inputs from PTI