Repurposing LCC as a software-defined network company, says TechM CEO

Tech Mahindra’s acquisition of Lightbridge Communications Corporation in 2014 has not worked well for the company. A leader in wireless engineering services with revenues of USD 400 million, LCC was expected to add to Tech Mahindra’s presence in the telecom vertical. Two and half years on, Tech Mahindra is busy pruning the company to transform it into a company that focuses on software defined networks.

While many analysts believe that the worst is over for LCC and revenues could stabilize at USD 300 million, Tech Mahindra CEO, CP Gurnani, told Moneycontrol in an interview that the company did make a mistake with the acquisition of LCC and work was underway to further trim revenues from field engineering, which is not a focus area for the company.

He said: "I will bring it down further as it still has USD 70-80 million field engineering revenues and we will bring down. We are also in the process of selling a small part of the business. We are repurposing LCC to be a software defined company."

The company is downsizing its relationships with clients in the space of field engineering. As indicated before, TechM will continue to reduce revenues from field engineering as it is not going in for renewals. Before growth picks up, revenues from LCC will decline by another USD 70-80 million.