Happiest Minds Technologies wants to bring down its dependency on the US, the world’s largest software market, to under-65 per cent on a sustainable basis. Last week, the software services company had reported a 30 per cent jump in net income at over Rs 44 crore for the September quarter. 

The US is the single-largest revenue head for all domestic software companies primarily because the country is the most tech-savvy market with the highest adoption levels and also the largest investor in technology and automation. 

On an average, the US gives 48 per cent of the revenue to domestic software companies, down from 55 to 60 per cent earlier. This is because the US companies are much more accessible and also take faster decisions on technology investment. 

For Happiest Minds, that is still much higher at close to 70 per cent on an average barring in the Q2 of FY22, when it had slipped to 66 per cent. 

“We used to have around 80 per cent of our revenue from the US alone. We have been diversifying our revenue pool to lower our revenue dependency on that market. In the September 2021 quarter, it was down to 66 per cent from 77 per cent a year ago. But we know such a drastic drop is not possible nor it is sustainable,” Joseph Anantharaju, the executive vice-chairman of Happiest Minds, had told the PTI recently from the company’s California headquarters. 

Mr Anantharaju added that the idea was to cap the revenue share from the US at under-65 per cent on a sustainable basis over the next few years. 

Happiest Minds Managing Director and CEO Venkatraman N said from the company’s Bengaluru headquarters: “The sharp drop in the US revenue share in Q2 was because of a big one-time deal from a West Asian client which also boosted the rest of the world revenue share to over 9 per cent from 2.6 per cent for long and also a multi-million deal from a German engineering company.”