Indian ICT outsourcer HCL NZ has retained its top position in revenue in 2022 despite gains from arch rivals Infosys and Tech Mahindra.
HCL NZ reported total revenue of $78.9 million, down from $90.1 million in 2021, while Infosys and Tech Mahindra grew strongly.
Infosys lifted 2022 sales to $38.2 million, up from $31.2 million, eclipsing Tech Mahindra, which reported $37.1 million, up from $28.8 million.
HCL is understood to have engaged with dairy giant Fonterra after it struck a five-year deal to manage the co-op’s entire ICT infrastructure in 2020. Later that year, Fonterra also started work on HCL’s IaaS platform, replacing outdated equipment and increasing security in the process.
HCL had already supported Fonterra for more than a decade before the new deal, managing its IT application support and maintenance portfolio, including SAP.
In August, HCL-owned DVS Australia was selected to help the Department of Home Affairs renew its registries in Microsoft’s NZ cloud region.
DVS, which incorporated a subsidiary in New Zealand in late 2019, previously carried out similar but much larger data migrations for the Victorian and NSW governments.
Meanwhile, Infosys was known to be working with Vodafone NZ, soon to be rebranded as One NZ, helping the telco change and update its SAP software by moving it to the cloud. SAP cited the project as a standout among 13 Stand Up with SAP migrations in New Zealand 2021.
As reported in September, Infosys backed it by partnering with Microsoft to help Spark carry out the complex implementation of Dynamics 365 and replace the legacy and heavily customized SAP telecom software.
Tech Mahindra, meanwhile, made a strategic foray into New Zealand technology consultancy Tenzing in late 2020.
As a locally owned private company, Tenzing’s financials were not public, but the buyout means it must now file annual accounts with the Companies Office.
In the year to March 31, 2022, Tenzing reported revenue of $33.4 million, up from $32.3 million a year earlier. If that were added to Tech Mahindra’s local revenue, the total would be $70 million and the pair would take clear second place overall Reseller News‘ analysis.
Tenzing’s net profit was just under $3 million, up from $2.1 million in 2021.
Tech Mahindra is publicly listed. His 2021 annual report revealed he paid US$29.5 million including earnings (equivalent to NZ$39.6 million at the time) for Tenzing and Tenzing Australia. Just over NZ$30 million has been paid in advance.
At the time of the purchase, Tenzing had 145 employees, the report added.
“The acquisition will bring strong capabilities primarily in the insurance vertical along with expansion.” [Tech Mahindra’s] footprint in the Australian and New Zealand markets,” it said.
Tech Mahindra also acquired Australian cloud engineering services provider Momenton in February 2021. The report reveals he paid A$9 million for the company, which employed 55 and earned A$10.8 million in revenue in the year to June 30, 2020.
“The acquisition will enhance Tech Mahindra’s digital transformation capabilities and provide Tech Mahindra with an expanded presence in the Australian BFS [banking and financial services] market,” the report said.
The Companies Act requires foreign-owned companies operating in New Zealand to file financial statements for their local operations if their sales exceed $11 million in two consecutive years. Neither Tata Consultancy Services nor Wipro, which are known to operate here, appear to have filed such reports.
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Tags outsourcinginfosisTech MahindraHCL