India's Tech Mahindra is increasing its focus on its banking, financial services, and insurance (BFSI) sector in order to close the revenue gap with larger competitors that have traditionally made more money from the profitable segment.

Mohit Joshi, who took over India's No.5 software services exporter in December 2023 after more than two decades at Infosys, plans to expand BFSI's part of Tech Mahindra's revenue mix to 25% by March 2027, up from roughly 16% today.

Some of Tech Mahindra's competitors in the $254 billion Indian IT business already derive up to a third of their revenue from this area.

"We still have a lot of room to catch up," said Joshi, who previously worked as a banker for ABN Amro and ANZ before joining Infosys. "I do expect that the relative share of BFSI revenue within TechM will increase, but...organically."

Unlike its competitors, Tech Mahindra has depended significantly on telecom customers to increase income. That will change when Joshi attempts to use his own expertise and experience dealing with financial services organizations to bring the company around.

"BFSI is the single greatest spender on technology services. It is critical for us to play aggressively in this space. Large banks routinely spend more than $10 billion on technology each year," according to Joshi.

Tech Mahindra, which has trailed behind its counterparts in terms of sales and profit, would focus on core banking, payments, asset and wealth management, custodian services, and insurance, he added.