Field Project ON Impact of 5G & AI On Tech Mahindra's Telecom Business Analyzing Business Growth Opportunities
Field Project ON Impact of 5G & AI On Tech Mahindra's Telecom Business Analyzing Business Growth Opportunities
PROJECT REPORT
ON
This research has been carried out with integrity and in compliance with ethical guidelines. It has
not been submitted to any other institution for academic or professional purposes.
Date:
Place:
ACKNOWLEDGEMENT
I would like to express my sincere gratitude to all those who contributed to the successful
completion of this research project titled "Impact of 5G & AI on Tech Mahindra’s Telecom
Business analysing Business Growth Opportunities."
First and foremost, I extend my heartfelt thanks to Mr. Sambhaji Dorge Sir whose valuable
guidance, insights, and constant support played a crucial role in shaping this study. Their
expertise and feedback have been instrumental in enhancing the depth and quality of this
research.
I would also like to acknowledge Tech Mahindra and its professionals for providing valuable
insights and data that helped me understand the real-world implications of 5G and AI in the
telecom sector. Their cooperation and willingness to share information significantly contributed
to the findings of this study.
Furthermore, I am grateful to industry experts, research participants, and survey respondents for
sharing their perspectives and experiences, which enriched the research with practical insights.
Lastly, I extend my appreciation to my family, friends, and peers for their unwavering
encouragement and support throughout this research journey. Their motivation and belief in my
work have been a constant source of inspiration.
This research would not have been possible without the collective efforts of all the individuals
mentioned above, and I am truly grateful for their contributions.
MBA
GSMCE ( balewadi)
INDEX
1 Introduction
2 Review of Literature
3 Methods
6 Annexure
INTRODUCTION
The rapid evolution of technology has transformed the global telecommunications industry, with
5G (Fifth Generation) networks and Artificial Intelligence (AI) emerging as key drivers of
innovation. As a leading IT and telecom solutions provider, Tech Mahindra is at the forefront of
leveraging these advanced technologies to enhance its service offerings, optimize operations, and
drive business growth.
5G technology promises ultra-fast connectivity, low latency, massive device connectivity, and
enhanced network reliability, making it a game-changer for industries, including telecom,
healthcare, manufacturing, and smart cities. Similarly, AI plays a crucial role in network
optimization, predictive maintenance, customer service automation, and cybersecurity, helping
telecom companies improve efficiency and service quality.
With increasing competition in the telecom sector, Tech Mahindra's ability to harness 5G and AI
effectively can significantly impact its market position, revenue streams, and customer
satisfaction. This research aims to explore the impact of these technologies on Tech Mahindra’s
telecom business and identify potential growth opportunities.
Tech Mahindra, a leading global IT and telecom solutions provider, has been at the forefront of
integrating 5G and AI-driven solutions to enhance telecom infrastructure, optimize operations,
and create new business opportunities. As the demand for smart cities, IoT (Internet of Things),
cloud computing, and edge computing grows, the role of 5G and AI in the telecom sector
becomes even more critical.
Tech Mahindra, with its expertise in network services, digital transformation, and AI-driven
automation, is well-positioned to leverage 5G technology to drive business growth. However,
with rising competition from global telecom giants like Huawei, Nokia, and Ericsson, there is a
need to evaluate: How effectively Tech Mahindra is utilizing 5G and AI to expand its telecom
business. The business growth opportunities that arise from integrating 5G and AI in telecom
services. The challenges and risks associated with implementing AI-powered 5G solutions.
COMPANY PROFILE
Tech Mahindra is a prominent Indian multinational information technology (IT) services and
consulting company, recognized for its comprehensive digital transformation solutions and
global reach. Tech Mahindra was established in 1986 as a joint venture between Mahindra &
Mahindra and British Telecom, initially named Mahindra British Telecom (MBT).
Headquarters: Pune, India Registered Office: Gateway Building, Apollo Bunder, Mumbai –
400001, Maharashtra Corporate Office: Plot No. 1, Phase III, Rajiv Gandhi Infotech Park,
Hinjewadi, Pune – 411057
Tech Mahindra operates in over 90 countries, serving more than 1,250 global customers,
including Fortune 500 companies. The company employs approximately 152,400 professionals
worldwide, reflecting its extensive global footprint. The company provides a wide array of
services, including: Digital Transformation: Assisting businesses in evolving digitally to meet
modern challenges. Consulting Services: Offering expert advice to optimize business processes.
Business Re-engineering: Redesigning business strategies for improved efficiency. Cloud
Consulting: Assisting in the adoption and management of cloud technologies. Data Analytics &
Artificial Intelligence: Leveraging data and AI for informed decision-making. Network Services:
Providing robust network solutions for seamless connectivity.
Tech Mahindra caters to various sectors, including: Banking and Financial Services
Communications Energy and Utilities Healthcare and Life Sciences Insurance Manufacturing
Media and Entertainment Oil and Gas Retail and Consumer Good Travel, Transportation,
Logistics Public Sector and Government Professional Services Hospitality Subsidiaries and
Portfolio Companies Tech Mahindra's portfolio includes several notable subsidiaries.
In December 2024, Tech Mahindra announced a strategic focus on enhancing its banking,
financial services, and insurance (BFSI) segment. The company aims to increase the BFSI
sector's contribution to its revenue to up to 25% by March 2027, up from the current 16%. This
initiative reflects Tech Mahindra's commitment to diversifying its service offerings and
strengthening its position in the BFSI domain.
Board of Directors:
One of the primary concerns is the impact of 5G and AI on Tech Mahindra’s telecom business
and how the company can strategically position itself to maximize its business potential. 5G
technology is expected to revolutionize network capabilities by enabling ultra-reliable low-
latency communication (URLLC), massive machine-type communication (mMTC), and
enhanced mobile broadband (eMBB). This opens doors for new business avenues such as smart
cities, autonomous vehicles, Industrial IoT (IIoT), cloud gaming, and next-generation enterprise
solutions. However, the challenge lies in understanding which specific market segments and
applications Tech Mahindra should focus on to gain a competitive edge.
At the same time, AI adoption in telecom operations is driving a new wave of digital
transformation, enabling predictive network management, intelligent automation, AI-powered
customer service, and fraud detection. With AI capabilities integrated into 5G networks, cloud
computing, and data analytics, Tech Mahindra has the opportunity to enhance operational
efficiency and create new revenue streams. However, leveraging AI at scale requires significant
investment, expertise, and integration with existing infrastructure. There is a need to examine
how Tech Mahindra can effectively deploy AI-driven telecom solutions to improve business
performance and customer satisfaction.
Despite the immense potential, several challenges hinder the widespread adoption of 5G and AI
in Tech Mahindra’s telecom business. Firstly, the high cost of infrastructure deployment poses a
significant financial burden, requiring strategic partnerships and investment planning. Secondly,
regulatory challenges and spectrum allocation policies vary across different regions, impacting
the expansion of 5G services. Additionally, cybersecurity concerns arise due to the massive
volume of data exchanged in 5G networks, increasing the risk of cyberattacks and data breaches.
Integration with legacy systems is another critical challenge, as many telecom networks still rely
on older infrastructure that may not be fully compatible with 5G and AI-driven automation.
To address these issues, this study aims to analyze the business growth opportunities presented
by 5G and AI for Tech Mahindra and identify the most effective strategies to overcome the
challenges associated with their adoption. The research will assess global industry trends,
competitive benchmarks, and technological advancements to provide insights into how Tech
Mahindra can enhance its market positioning, service offerings, and revenue streams in the
telecom sector.
Furthermore, the study will explore Tech Mahindra’s current investments in 5G and AI
technologies, assessing their effectiveness in driving business growth. It will also evaluate the
potential of enterprise solutions, AI-driven automation, and cloud-based services in shaping the
future of Tech Mahindra’s telecom business. By examining customer adoption patterns,
emerging use cases, and industry collaborations, this research will provide actionable
recommendations on how Tech Mahindra can leverage 5G and AI for long-term success
1.2 Purpose/Objectives of the Project
This study aims to examine the impact of 5G and AI on Tech Mahindra’s telecom business,
identifying growth opportunities and potential challenges. The research will provide a
comprehensive understanding of how these technologies influence business expansion,
operational efficiency, and market competitiveness. The following are the detailed objectives of
the project:
5G and AI open new avenues for business expansion in both B2B and B2C markets. This
objective focuses on identifying specific growth areas, including: Enterprise solutions that
leverage 5G and AI, such as IoT-based services, cloud computing, and edge computing. New
revenue streams from AI-driven analytics, automation services, and 5G-enabled applications.
Potential partnerships and collaborations with telecom operators, technology firms, and
government entities to accelerate 5G and AI adoption.
4. To Examine the Challenges and Risks Associated with the Adoption of 5G and AI
Despite their potential, 5G and AI adoption comes with challenges related to cost, infrastructure,
cybersecurity, and regulatory compliance. This objective aims to: Analyse the cost implications
of deploying 5G and AI-based telecom solutions. Identify regulatory and policy challenges
affecting the expansion of 5G services and AI-driven automation. Assess the cybersecurity
threats and data privacy concerns associated with AI-powered telecom networks. Explore how
Tech Mahindra can overcome integration challenges with legacy systems and existing telecom
infrastructure.
As global telecom firms invest heavily in 5G and AI, it is crucial to benchmark Tech Mahindra
against its competitors. This objective focuses on: Analysing Tech Mahindra’s current market
position compared to other telecom technology providers. Examining global case studies of
successful 5G and AI implementation in the telecom sector. Identifying key differentiators that
can strengthen Tech Mahindra’s competitive edge in the 5G and AI market.
6. To Recommend Strategic Actions for Tech Mahindra to Maximize Growth from 5G and
AI
The final objective of this study is to develop actionable recommendations that can help Tech
Mahindra fully capitalize on 5G and AI technologies. These recommendations will focus on:
Investment strategies in R&D, infrastructure, and AI-driven solutions. Operational improvements
in network management, automation, and customer service. Business expansion plans targeting
high-growth sectors such as IoT, cloud computing, and 5G enterprise solutions. Partnership
opportunities with telecom providers, AI companies, and government agencies to drive
innovation and market penetration.
1.3 Theoretical Framework
Diffusion of Innovation
The Diffusion of Innovation (DOI) theory, proposed by Everett Rogers, explains how new
technologies spread across industries and among consumers. This theory is relevant to 5G and AI
adoption in Tech Mahindra’s telecom business as it categorizes adopters into:
Early Adopters: Enterprises integrating AI-powered telecom services and 5G-enabled IoT.
Early Majority: Businesses adopting 5G and AI once market trends validate their benefits.
Late Majority & Laggards: Companies hesitant due to costs, regulations, or uncertainty.
Tech Mahindra must position itself as an innovator and early adopter by investing in 5G and AI-
driven telecom solutions. Identifying early adopters in various industries (smart cities,
healthcare, automotive) can help target key markets. Understanding adoption barriers (cost,
regulation, security) will help in designing customized solutions for clients. Porter’s Five Forces
– Analyzes Tech Mahindra’s competitive position in the telecom market. Resource-Based View
(RBV) – Examines Tech Mahindra’s AI and 5G capabilities as strategic assets.
The Technology Acceptance Model (TAM) explains how users accept and use new technologies
based on:
Perceived Usefulness (PU): The extent to which 5G and AI improve business efficiency,
automation, and revenue.
Perceived Ease of Use (PEOU): How easily organizations can integrate 5G and AI into their
existing telecom infrastructure.
The success of 5G and AI adoption in telecom depends on how easily businesses can implement
these solutions. Tech Mahindra should focus on making AI-powered automation and 5G
enterprise solutions user-friendly. Customer training, support, and seamless integration can
accelerate adoption.
Michael Porter’s Five Forces Model helps analyze market competitiveness and growth
opportunities in the telecom sector:
Industry Rivalry: Telecom firms like Tech Mahindra, Ericsson, Huawei, and Nokia are
competing for AI-5G market leadership.
Bargaining Power of Buyers: Large telecom operators and enterprises demand cost-
effective AI-5G solutions.
To gain a competitive edge, Tech Mahindra must invest in differentiated AI-powered telecom
services. Identifying key competitors’ strategies will help Tech Mahindra position its offerings
effectively. Partnering with 5G spectrum providers, AI startups, and cloud computing firms can
mitigate supplier dependency
The Resource-Based View (RBV) suggests that a company’s competitive advantage is based on
unique internal resources and capabilities, categorized as VRIO (Valuable, Rare, Inimitable, and
Organized).
Relevance to Tech Mahindra
Valuable: AI-powered telecom solutions improve network automation, security, and predictive
analytics. Rare: Not all telecom companies have deep AI expertise; Tech Mahindra can leverage
this advantage. Inimitable: Developing proprietary AI-5G solutions creates barriers for
competitors. Organized: Structuring AI-5G integration within Tech Mahindra’s telecom business
strengthens its long-term positioning.
Christensen’s Disruptive Innovation Theory explains how emerging technologies (5G and AI)
can disrupt traditional telecom models.
As 5G and AI adoption increase, so do cybersecurity risks, data privacy concerns, and regulatory
challenges. The ISO 31000 risk management framework emphasizes:
Risk Assessment: AI-driven predictive analytics for fraud detection and network monitoring.
Addressing AI-5G cybersecurity risks ensures compliance with global telecom regulations.
Developing AI-powered risk assessment tools strengthens network security for telecom clients.
1.4 Significance of the Project
Tech Mahindra is a leading IT and telecom solutions provider, and its future growth depends on
how effectively it integrates 5G and AI into its business model. This study is significant because
it helps Tech Mahindra: Identify new business opportunities enabled by 5G and AI, such as
smart cities, IoT, cloud-based solutions, and Industry 4.0. Develop a competitive edge by
benchmarking its 5G and AI initiatives against key global competitors. Improve operational
efficiency through AI-driven automation, predictive maintenance, and intelligent customer
service. Understand the cost and investment implications of deploying 5G infrastructure and AI-
based telecom solutions. Formulate strategic partnerships with telecom operators, AI companies,
and governments to accelerate 5G adoption.
2. Telecommunications Industry
The telecom sector is undergoing a significant transformation due to 5G rollouts and AI-driven
automation. The insights from this study will be valuable for the broader industry by: Providing a
detailed analysis of how 5G and AI are shaping telecom services, including network
management, cybersecurity, and customer experience. Highlighting challenges faced in 5G
deployment, such as infrastructure costs, regulatory hurdles, and data security concerns. Offering
best practices and case studies that other telecom providers can use to enhance their 5G and AI
strategies.
Tech Mahindra provides telecom solutions to enterprises, telecom operators, and end-users. The
study’s findings will benefit its clients by: Enhancing network reliability, speed, and service
quality through AI-driven automation and 5G networks. Improving customer service experiences
using AI-powered chatbots, predictive analytics, and real-time issue resolution. Enabling
businesses to adopt 5G-enabled digital transformation solutions, such as cloud computing, smart
factories, and IoT-based innovations.
This project serves as a foundation for further research into the impact of emerging technologies
in telecom. Its findings will be valuable for: Academicians and researchers exploring the
economic, technical, and business implications of 5G and AI. Tech startups and AI developers
looking to create innovative solutions for telecom network management and automation. Future
studies focusing on new trends such as 6G, quantum computing in telecom, and AI-driven
cybersecurity models.
REVIEW OF LITERATURE
Several studies highlight the role of 5G technology as a game-changer in the telecom industry,
offering high-speed data, ultra-low latency, and enhanced connectivity (Andrews et al., 2014;
Ericsson Mobility Report, 2023). Meanwhile, Artificial Intelligence (AI) is increasingly being
integrated into telecom networks to optimize operations, improve customer experiences, and
enable intelligent automation (Mach & Becvar, 2021).
In the case of Tech Mahindra, its focus on 5G-driven digital transformation and AI-
powered network solutions positions it for substantial market growth. Reports from Tech
Mahindra (2023) and IDC (2022) emphasize its strategic investments in AI-based
automation, cybersecurity, and cloud-native 5G solutions.
Tech Mahindra’s strategic collaborations with telecom providers like AT&T and
Vodafone for 5G solutions highlight its role in facilitating enterprise digital
transformation.
While 5G and AI offer immense growth opportunities, studies also point out challenges such as
high infrastructure costs, security concerns, and regulatory hurdles (ITU, 2023; PwC, 2022).
Tech Mahindra’s research papers emphasize the importance of cybersecurity, AI-driven risk
management, and regulatory compliance in ensuring successful adoption.
5. Conclusion and Research Gaps
The existing literature provides substantial insights into the role of 5G and AI in telecom growth,
but there is limited research focusing specifically on Tech Mahindra’s business strategies. Future
research could explore how Tech Mahindra’s AI-driven telecom solutions compare with
competitors like Infosys, TCS, and Wipro, and their long-term impact on business revenue.
This literature review forms the foundation for the study by identifying business growth
opportunities, strategic applications, and challenges associated with 5G and AI in Tech
Mahindra’s telecom business
METHODOLOGY
1. Research Design
This study adopts a mixed-method approach, combining qualitative and quantitative research to
provide a comprehensive understanding of 5G and AI adoption in telecom.
Qualitative Analysis: Focuses on industry trends, case studies, and expert opinions on how 5G
and AI are transforming Tech Mahindra’s business model.
Quantitative Analysis: Involves statistical analysis of market data, revenue growth trends,
investment in 5G/AI infrastructure, and customer adoption rates.
Business leaders from industries like manufacturing, healthcare, IoT, and smart cities.
Case Studies
Analysis of successful 5G and AI implementations within Tech Mahindra and its
competitors. Case studies of AI-driven network automation, predictive analytics, and
smart telecom solutions.
Market Reports and Industry Publications: Reports from GSMA, Ericsson Mobility
Report, Deloitte, PwC, and McKinsey on 5G and AI adoption in telecom. Tech
Mahindra’s financial reports, investor presentations, and research whitepapers.
Data Analytics Tools: Microsoft Excel, SPSS, Python (for statistical analysis of market
trends). Survey Platforms: Google Forms, Typeform, or Qualtrics for collecting
responses from participants. Transcription & Analysis: NVivo for qualitative interview
coding and analysis.Market Intelligence Databases: Statista, IBISWorld, and Forrester
Research for secondary data.
Ethical Considerations
Confidentiality: Ensuring anonymity of Tech Mahindra employees and industry experts
interviewed.
Data Security: Secure storage of survey responses and interview transcripts.
Informed Consent: Participants were informed about the purpose and scope of the
research before participation.
Surveys are effective tools for collecting quantitative data from a broad audience. For this
study, tailored questionnaires can capture insights into stakeholders' perceptions,
experiences, and expectations regarding the integration of 5G and AI in the telecom
sector.
To analyze the impact of 5G and Artificial Intelligence (AI) on Tech Mahindra's telecom
business and identify growth opportunities, it's essential to consider industry trends and case
studies from secondary sources.
Industry Trends
1. 5G-Advanced Evolution
The telecom industry is transitioning towards 5G-Advanced (also known as 5.5G or 5G-
A), an evolutionary upgrade to 5G technology defined under the 3GPP Release 18
standard. This phase focuses on performance optimization, enhanced spectral and energy
efficiency, and expanded functionality. It supports advanced applications such as
extended reality (XR), massive machine-type communication (mMTC), and ultra-low
latency services crucial for autonomous vehicles. Notably, 5G-Advanced integrates AI
and machine learning (ML) to optimize network operations, enabling smarter resource
allocation and predictive maintenance. It also enhances network slicing, allowing highly
customized virtual networks for specific use cases like industrial automation and smart
cities.
The rollout of 5G networks varies globally. The UK and Europe are currently lagging
behind the USA and major Asian economies in 5G deployment, with coverage below
50% compared to 90% in the USA and 95% in leading Asian countries. This lag is
attributed to a fragmented telecommunications sector in Europe, which has stifled
investment. Consolidation efforts, such as Vodafone's merger with Three, aim to achieve
the necessary scale for infrastructure investment.
Case Studies
T-Mobile projects an adjusted free cash flow between $18 billion and $19 billion by
2027, driven by strong customer additions and partnerships with Nvidia and OpenAI. The
company plans to return up to $50 billion to shareholders through buybacks and
dividends. It also expects service revenue between $75 billion and $76 billion, and core
adjusted EBITDA between $38 billion and $39 billion for 2027. T-Mobile's growth plan
includes the addition of 12 million 5G broadband customers by 2028 and the launch of an
AI decision-making platform, IntentCX, in partnership with OpenAI. Collaborations with
Nvidia, Ericsson, and Nokia aim to enhance mobile networks using AI.
AT&T anticipates first-quarter adjusted profit aligning with analysts' expectations due to
continued demand for its 5G and fiber optic services. The company projects per-share
earnings of at least 48 cents, slightly below the estimated 49 cents. This follows AT&T’s
strategy to boost high-speed fiber offerings and efforts to maintain subscriber growth
amid a shrinking pool of potential new wireless users in the U.S. Last year, AT&T
announced selling its 70% stake in DirecTV to TPG, with the deal slated to finalize in
mid-2025 and expected to generate $1.4 to $1.5 billion in cash payments. The company
also affirmed its annual adjusted profit forecast between $1.97 and $2.07 per share.
Tech Mahindra can leverage these insights to enhance its telecom business by:
ANALYSIS
Collaboration with AWS: The partnership with Amazon Web Services (AWS) focuses
on developing an Autonomous Networks Operations Platform (ANOP), leveraging AI,
including generative AI, to automate network operations and optimize performance.
Analytical Techniques:
Industry Insights: Tech Mahindra emphasizes the evolution of telecom services beyond
basic connectivity, highlighting the integration of 5G, IoT, and AI to create
comprehensive ecosystem solutions.
Operational Modernization: The company advocates for the modernization of telecom
operations through AI, aiming to simplify processes, reduce costs, and enhance service
quality.
Analytical Techniques:
Thematic Analysis: Examine internal reports, stakeholder interviews, and industry
publications to identify recurring themes related to the benefits and challenges of 5G and
AI integration.
Content Analysis: Analyze customer feedback and support interactions to gauge
sentiment and identify areas for improvement in service delivery.
3. Data Visualization
Implementation:
Strategic Focus:
By systematically applying these analytical tools and techniques, Tech Mahindra can effectively
assess the impact of 5G and AI on its telecom business, leading to informed strategies that drive
growth and maintain competitive advantage.
FINDING & SUGGSTIONS
ANNEXURE
Name:
Email id:
Designation:
Years of Experience in Telecom Industry:
7. What challenges has your organization faced or anticipates facing with 5G adoption?
o High implementation costs
o Regulatory hurdles
o Technical complexities
o Lack of skilled personnel
o Integration with existing systems
8. What challenges has your organization faced or anticipates facing with AI integration?
o Data privacy concerns
o High implementation costs
o Lack of expertise
o Integration difficulties
o Employee resistance
o Other: [Please specify]
9. In your opinion, how will 5G and AI integration impact the telecom industry in the next 5
years?
o Introduction of innovative services
o Transformation of business models
o Increased competition
o Enhanced customer expectations
10. How is your organization preparing for the convergence of 5G and AI?
en.wikipedia.org
thetimes.co.uk
reuters.com
techmahindra.com
prnewswire.com