Mphasis is an IT services company that builds artificial intelligence directly into the way large enterprises run their operations, not just their technology systems. It was formed in 2000 from a merger and later backed by Blackstone, the world’s largest alternative asset manager, which took a controlling stake in 2021. The recurring approach is to organize around each client as the basic unit of business, deploying small teams of specialists called “Tribes” to solve problems using a mix of proprietary AI platforms and deep industry knowledge - a model it calls “Hi-Tech, Hi-Touch, Hi-Trust”. # Business segments Three engines built on the same client-centric model - a banking and insurance powerhouse that anchors the company, a broad technology-modernization factory that generates most of the revenue, and a set of emerging industry verticals where AI-led deals are opening new accounts. ## 1. Banking, financial services and insurance: the anchor that pulls everything else **Two out of every three dollars Mphasis earns comes from banks and insurers, where it serves nearly all the top-tier players in North America and uses AI to move from maintaining systems to transforming core decisions like underwriting and claims.** - **Deepest wallet share in banking** - the banking and financial services vertical alone contributes 52% of total revenue, and Mphasis counts 13 of the top 15 retail banks in North America as clients, giving it a base from which to expand every new technology it builds. - **Insurance is the fastest grower** - the insurance vertical grew 36% in the latest year, driven by AI-powered tools that help carriers price policies, triage claims and assess risk, and the company already serves 7 of the top 10 North American insurers. - **Clients get bigger over time** - the top client has now outgrown the company average for three straight quarters, and the client pyramid includes one account above $200 million, two above $150 million, and four above $100 million in annual revenue, showing that Mphasis expands inside accounts rather than just adding new logos. - **Mortgage work is a stabilizer** - the mortgage sub-segment within banking, which had shrunk when interest rates rose, has broadly stabilized over recent quarters, removing a drag on the vertical’s growth. ## 2. Enterprise applications: the modernization factory **This is the core engine - three-quarters of revenue - where Mphasis takes legacy software estates and rewires them with AI, moving from billing by the hour to pricing for outcomes.** - **Application services is the main act** - at 75% of total revenue, this line covers designing, building and maintaining custom software for clients, and it grew nearly 15% in the latest year as companies accelerated AI-led modernization programs. - **Fixed-price contracts are taking over** - the share of work done on a fixed-price basis has risen from 26% five years ago to 44% today, while time-and-material billing has dropped from 74% to 48%, reflecting a shift toward committed outcomes rather than headcount-based billing. - **AI changes the pricing model** - the company is moving from charging per ticket resolved to charging for availability or ticket reduction, which means AI-driven automation can shrink the volume of people-based work while creating higher-value engagements. - **Deals are hunted, not just bid** - about 76% of new deals come from proactive pursuits where Mphasis shapes the opportunity before a formal request for proposal exists, and win rates in those situations are materially higher than in competitive tenders. ## 3. Emerging verticals: the growth frontier beyond financial services **Technology, media, telecom, logistics and healthcare together form a portfolio of younger client relationships where AI-led large deals are converting new logos into scalable accounts.** - **Technology, media and telecom is the largest of the rest** - at 18% of revenue, this vertical more than doubled in a single year recently and grew another 16% in the latest year, though near-term decision delays from geopolitical uncertainty have created some softness. - **Healthcare is gaining traction** - the “Others” segment, which includes healthcare, grew sequentially in the latest quarter on the back of recent large deal wins, and the company has carved out healthcare as one of five focus verticals for new client acquisition. - **Logistics is being reshaped** - the logistics and transportation vertical shrank sharply in the latest year as Mphasis reallocates resources toward higher-value, AI-led opportunities, consistent with its broader strategy of prioritizing depth over breadth. - **New logos are scaling fast** - new client acquisition revenue grew 60% year-over-year in one recent period, and the company signed at least 12 Fortune 500 companies in a single year through a dedicated engine that targets high-quality, scalable accounts across five chosen verticals. # Mphasis.ai and the NeoIP platform suite **A dedicated AI business unit and a proprietary platform stack - not a separate P&L but the shared capability engine that infuses every segment with agentic AI, decision intelligence and reusable software assets.** - **AI is now the majority of the pipeline** - 69% of the company’s deal pipeline is AI-led, up from 25% two years ago, and the pipeline itself has expanded to 2.6 times its original size since the AI unit launched. - **NeoIP is the reusable brain** - the proprietary NeoIP platform suite includes tools that write software, modernize legacy code, run IT operations and learn business processes, all powered by a dynamic knowledge graph called Ontosphere that makes enterprise knowledge machine-readable. - **Mphasis Tria closes the loop** - a three-layer stack called Tria unifies insight (understanding the enterprise), foresight (predicting and optimizing decisions) and execution (automating actions), creating a closed loop of understand-decide-act-measure that was deployed at a US regional bank to eliminate 19,700 hours of manual work per month across six payment systems. - **Decision intelligence was bought, not just built** - the acquisition of Theory and Practice and its Continuum AI platform brought prebuilt machine-learning models for pricing, demand forecasting and marketing, along with a team of AI practitioners and a set of tier-one retail and consumer-goods clients already using the platform in production. - **Platform economics are the target** - the company is shifting from a service-led cost model to a platform-plus-outcomes business, aiming for 30% of revenue from annual recurring platform contracts within three years, because platform engagements carry structurally higher margins and absorb volume growth without proportional hiring. # Group structure and partners **Mphasis is a Blackstone-controlled public company with a global subsidiary network that executes acquisitions, and an ecosystem of hyperscaler partnerships that co-develop AI solutions for specific industries.** - **Blackstone is the controlling shareholder** - private equity funds managed by Blackstone, together with co-investors ADIA and UC Investments, committed up to $2.8 billion to acquire a controlling stake in 2021 through a Singapore entity, and they currently hold a 40.14% stake. - **Specialist alliances fill capability gaps** - Mphasis is the only Distinguished Platinum Partner globally for Kore.ai’s conversational AI platform, and it partners with WorkFusion for AI-driven digital workers in financial crime compliance, with Classiq for quantum-powered industry solutions, and with SecPod for vulnerability management.