GenAI will be a significant revenue source for us, says Sridhar Mantha

At present, our team is actively engaged in the development of 15 GenAI projects, each tailored to meet the unique needs of our diverse client base

Last year, IT service management company Happiest Minds Technologies, carved out a business unit dedicated to generative AI (GenAI) to mine new accounts and expand its services in this domain. From a team of less than 100, it plans to expand the unit with a team of about 300 GenAI experts this year. SRIDHAR MANTHA, president and chief executive officer (CEO) of Generative AI Business Unit (GBS), in an interview with Ayushman Baruah in Bengaluru, talks about the company’s strategy to win in this space. Edited excerpts:  

What are your plans to expand the GenAI global business unit?
 

We have trained almost all of our employees on the broader GenAI technologies. As part of the new business unit, we created a team of 70 experts who are and will continue to work only on building GenAI solutions. We expect to add around 250-300 GenAI experts by the end of this year. This expansion aligns with our strategic goals and the rising demand for our services. We are actively recruiting across various functions to ensure we have the necessary talent to support our growth and maintain our commitment to excellence. We try to keep upskilling our team on relevant aspects of GenAI such as code assistance, and leveraging this technology across our internal functions. Our focus remains on attracting skilled professionals who share our vision and contribute to our dynamic work environment.

How many active GenAI projects are you working on and from which verticals?
 

Our team is actively engaged in the development of 15 GenAI projects, each tailored to meet the unique needs of our diverse client base. These projects span a spectrum of verticals, reflecting the versatility and applicability of GenAI technology, addressing business problems through custom GenAI solutions. We are seeing significant traction in all the verticals that we operate in – Retail & CPG (consumer packaged goods), BFSI (banking, financial services and insurance), Industrial & Manufacturing, and Edutech.

Are your GenAI projects in the proof of concept stage or have they moved to the implementation stage?
 

Around 20 per cent of our GenAI projects have successfully moved into production and are now delivering tangible results. Additionally, another 40 per cent have advanced to full-scale implementation. This progression underscores our commitment towards transforming innovative ideas into real-world applications. Our team is dedicated to ensuring that these projects not only meet but exceed our client’s expectations by providing scalable, reliable solutions. The remaining projects are in various stages of development and testing, and they will follow a similar trajectory as we continue to focus on driving forward technological advancements and operational excellence.

How much revenue do you expect this unit to contribute in the coming quarters?
 

While we do not provide forward-looking revenue projections, we are confident that GenAI will become a significant revenue source for us in the coming years. The increasing demand for GenAI solutions across various sectors positions us well to capitalise on this trend. We expect the growth driven by our GenAI projects will substantially contribute to our overall financial performance, helping us achieve our long-term vision of becoming a billion-dollar enterprise by 2031. Our strategic focus on innovation and delivering value to our clients underpins this optimistic outlook, and we are excited about the potential opportunities ahead.

Do you see the discretionary spending environment improve in the next few quarters?
 

While the overall discretionary spending may still exhibit restraint, there is a notable increase in investments directed toward transformative technologies such as GenAI and AI. Businesses are increasingly recognising the tangible benefits these innovations offer, particularly when deployed in projects with immediate returns on investment. Whether through cost optimisation initiatives or revenue-enhancing endeavours, the strategic allocation of funds towards these targeted projects reflects the growing confidence in the value proposition of advanced technologies.

What are the size and tenure of your AI-led deals?
 

Our AI-led deals vary significantly in size and duration to accommodate a range of client needs and project complexities. Engagements can range from short-term projects lasting 3-4 weeks, quick prototypes to extensive, year-long assignments. Financially, these deals span up to $1 million per year, reflecting the breadth of our capabilities and the bespoke nature of our solutions.

Can we expect more acquisitions this year to bolster GenAI?
 

Our recent acquisitions have significantly contributed towards deepening our domain knowledge, expanding technological capabilities, and accessing key markets. While we remain open to exploring acquisitions that complement our new GBS business unit, our focus extends beyond solely GenAI capabilities. We aim to augment our offerings with diverse AI capabilities and other synergistic values that align with our long-term growth objectives and client needs.