Interview with Newgen Software Technologies Ltd
In conversation with Virender Jeet, Chief Executive Officer, Newgen Software Technologies Ltd
Can you elucidate your current segment-wise and geography-wise revenue mix? What is the optimal target mix you plan to achieve in the next 3-5 years?
For many years, banking and financial services have remained the strongest vertical and will continue to grow in the coming years. Our platforms are our strength, and our customers are growing, so we expect the growth momentum to continue. Similarly, insurance is strong for us. Government and shared services are comparatively smaller in size, but they are also key segments for us.
In terms of geography, we are fairly diversified – India and EMEA contribute the largest to our revenues, followed by US and APAC.
We have always given importance to our products, employee training, and strengthening our partner ecosystem for expanding footprints in newer and bigger markets like the US, Europe, and Australia. We have started FY’23, with new vigour and new branding, driven by our rich and differentiated platform, lasting relationships with customers, strong team, and a robust demand environment.
Newgen recently entered into a partnership with Coforge to empower leading insurance firms, public sector organizations, and others in the US, Europe, and the rest of the world. Can you elucidate the salient synergistic from this partnership?
The partnership brings together Coforge’s expertise and implementation resource strength with Newgen’s business insights and robust, secure, and scalable low-code digital transformation platform—NewgenONE. This will enable organizations globally to transform their processes, enhance operational efficiency, and gain a competitive edge over peers.
Users will be able to leverage contextual content services (ECM), low code process automation (BPM), and omnichannel customer engagement (CCM) platforms to seamlessly manage their processes, content, and communications.
What are some of the biggest challenges you are currently facing? What measures implementing to cope with challenges posed by elevated employee costs?
Employee attrition was one of the biggest challenges for us and others within the industry. Last year we had very high levels of attrition. We have been investing in all spheres of talent acquisition, retention, development, and incentivisation to mitigate the impact of elevated attrition across the industry.
We expect the employee attrition rate to stabilize in the near term.
Can you highlight your key growth drivers over the medium term?
Our rich and differentiated platform, lasting relationships with customers, strong team, and robust demand environment are the key growth drivers. We will continue to make investments in our products, employee training, and strengthening our partner ecosystem.
What are your acquisition plans for the next 2-3 years?
Recently, we have acquired Number Theory, to further enhance our low code digital transformation platform, NewgenONE, making it well-poised to deliver cloud-native AI/ML capabilities to every enterprise.
Going forward, we are open to the inorganic growth route, especially in mature markets like Europe, the US, and Australia, which will accelerate our speed to market. Predominantly we have a globally recognized strong product portfolio. But, sales engine setup is a time-consuming process. We are looking for opportunities that can help us to accelerate this process.
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