Coforge to spin off public sector as separate vertical

Coforge, the mid-sized IT services company which is achieved over $1 billion in annual revenue in the last quarter of FY23, is planning to spin off a standalone public sector division by the year-end. The sector's resilience is a catalyst for this strategic focus on establishing a separate public sector entity, Sudhir Singh, the chief executive, said in an interview.

- Shouvik Das

"We are focusing on public sector clients outside India-in the UK and Australia. Public sector accounts for 7-8% of our global revenue, so the plan is to diversify it as a standalone vertical. Public sector is a very resilient category, with governments increasingly taking up tech due to the entire focus on tech adoption to ensure the benefits reach end-consumers fast and social welfare schemes are more equitable. Spendings are increasing and they do not fluctuate like spending by the corporates. This vertical can grow than faster spending of other verticals," he said.

Coforge owns three core business verticals-banking and financial services (BFS), insurance, and travel, transportation and hospitality (TTH).