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HCL NZ retains revenue lead over Infosys and Tech Mahindra

HCL NZ retains revenue lead over Infosys and Tech Mahindra

Financial details of Tech Mahindra's buyout of NZ consultancy Tenzing are revealed.

Credit: Dreamstime/Oleksandr Shnuryk

India-based ICT outsourcer HCL NZ maintained its revenue leadership in 2022 despite gains by major 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 both grew strongly.

Infosys lifted 2022 sales to $38.2 million, up from $31.2 million, shading Tech Mahindra which reported $37.1 million, up from $28.8 million.

HCL is known to be engaged with dairy giant Fonterra after striking a five-year deal to manage the cooperative's entire ICT infrastructure in 2020. Later in that year Fonterra also went live on HCL's IaaS platform, replacing dated gear and boosting security in the process.

Credit: Reseller News

HCL had already been supporting Fonterra for over a decade before the new deal, managing its IT application support and maintenance portfolio, including SAP.

In August, HCL-owned business management and consulting group DWS Australia was selected to help the Department of Internal Affairs rebuild its registries in Microsoft's NZ cloud region.

DWS, which incorporated a New Zealand subsidiary in late 2019, had previously performed similar but much larger data migrations for the Victorian and NSW governments.

Infosys, meanwhile, was known to be working with Vodafone NZ, soon to be rebranded as One NZ, helping the telco shift and update its SAP software by shifting it to the cloud. SAP cited the project as a standout among 13 "Rise with SAP" migrations in New Zealand in 2021.

As reported in September, Infosys backed that up in partnership with Microsoft to help Spark execute a complex Dynamics 365 implementation and replace the telco's aging and heavily customised SAP software.

Tech Mahindra, meanwhile, executed a strategic swoop on New Zealand tech consultancy Tenzing in late 2020. 

As a private, locally-owned company, Tenzing's financials were not public, but the buyout means it now has to file annual accounts with the Companies Office.

In the year to 31 March 2022, Tenzing reported revenue of $33.4 million, up from $32.3 million the year before. If that was added to Tech Mahindra's local revenue, the total would crack $70 million and the pair would claim clear second place overall in Reseller News' analysis.

Tenzing's net profit was just under $3 million, up from $2.1 million in 2021.

Tech Mahindra is publicly listed. Its annual report for 2021 revealed it paid US$29.5 million including earnouts (equivalent at the time to NZ$39.6 million) for Tenzing and Tenzing Australia. Just over NZ$30 million was paid up-front.

At the time of acquisition Tenzing had 145 employees, the report added.

"The acquisition will bring strong capabilities primarily in the insurance vertical along with expanding [Tech Mahindra's] footprint in the Australia and New Zealand market," it said.

Tech Mahindra also bought Australian cloud engineering service provider Momenton in February 2021. The report reveals it paid A$9 million for the company which employed 55 and earned A$10.8 million in revenue in the year to 30 June, 2020. 

"The acquisition will enhance Tech Mahindra’s digital transformation capabilities and provide Tech Mahindra a scaled-up presence in the Australian BFS [banking and financial services] market," the report said.

The Companies Act requires foreign-owned companies operating in NZ to file financial statements for their local operations if their sales exceed $11 million in two successive years. Neither Tata Consultancy Services nor Wipro, both known to operate here, appear to have filed such reports.


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