will pick up only next year but it has still grown 11 per cent year on year. We are on track for that. Utilities and telecom
will see quarter-to-quarter variations. Some projects are over; these had some quarter-on-quarter impact. But, generally, we are positive on that segment.
Engineering services have been the real growth driver. Can you explain the type of deals that you are signing? Are you benefiting from the offset contracts for defence deals in India?
We do not participate in the India business much. The engineering services growth has three drivers. One is the core engineering services, a traditional strength area. Second is for some of the acquisition we made, the synergies are coming into the revenue stream such as GeometricPLM. It is really doing well, so it bringing in the synergy which we had factored in during the acquisition. The third is that we continue to build and invest in IP partnerships. That definitely brings in revenue from a product. Also, a lot of professional services are associated with it.
What’s your take on electric as well as driverless cars? Is HCL working on it in collaboration with someone?
We are partnering and doing work with some of the customers on that.
Can you throw light on banking, financial services and insurance (BFSI). How is customer spending moving?
BFSI has been a great story for us. It has grown over 3 per cent compounded quarterly growth rate, over the past six quarters. The reason we are doing well in financial services, is really a manifestation of our strategy, which is significantly reducing the spend for clients in the traditional services and bringing in automation, implementing dry ice, and ensuring those benefits are really realised.
That allows the customers to redirect the spending on mode two. Since we have helped them create that reduction and we have the right offerings in mode two they are spending with us.
Digital revenue now accounts for 25 percent of their overall revenues. How has it grown and what's the pipeline and wins in the Digital side of the business?
Excellent, both the growth and the pipeline, all of that we feel quite positive. On bookings side, out of the 20 transformational deals, seven have significant motocomponents and the pipeline that we have both organic and inorganic is quite healthy. We have several mega-deals in the pipeline.
What is HCL doing different from the market which is helping in its growth?
I think we have simple strategy, which is focussed on being relevant and following the client spend, which is really simplified by our mode 1-2-3 strategy. We have put senior leaders behind each one of these services and are focussed on executing.
What is you merger and acquisition plan like for 2018?
We will do it in all three areas, in mode one mostly in geographic expansion, in mode two digital, cloud we expect to do something in FY19 and we will continue to invest in IP Partnerships which is mode three.