Mphasis Invests 1.5% of Revenue in Enterprise AI 'Agency' Platform
Mphasis Launches Enterprise Agency Platform to Drive Outcome-Based Decision Making
On May 27, Mphasis, a mid-tier IT services firm, launched Mphasis Tria, an enterprise agency platform designed to help customers transition from artificial intelligence (AI) experimentation to outcome-based decision making. The platform is central to the company's AI strategy over the next two to three years, with Mphasis having invested nearly 1.5 percent of its revenue in the past two years to develop the platform.
Mphasis Tria will be deployed across enterprise transformation projects through two new product lines: Mphasis Modernize and Mphasis Optimize. The platform aims to create a new category of "enterprise agency," which refers to a mechanism to train and build AI agents that can autonomously make decisions without human intervention or the possibility of hallucinations.
The concept of enterprise agency is distinct from agentic AI, which is a tool stack. While Mphasis has built a strong foundation in AI through its investment in large language models (LLMs) and innovation labs, the company's CEO and MD, Nitin Rakesh, emphasized the importance of driving "agency" at an enterprise level. Rakesh described agentic AI as a "hammer looking for a nail," highlighting the need for a more nuanced approach to AI adoption.
The launch of Mphasis Tria marks a significant shift in the company's business roadmap, with a focus on outcome-based offerings rather than human input-based execution. This change is expected to drive revenue growth, with Rakesh predicting that the contribution from outcome-based deals will increase over time.
As of FY26, Mphasis has seen growth in its deal size and revenue, with 68% more deals sold compared to FY25. The average large deal size grew from $52 million to $74 million, driven by the company's AI stack and new intellectual properties (IPs) launched.
| FY25 | FY26 |
|---|---|
| Deal size ($ million) | 52 |
| Deal growth | - |
The successful launch of Mphasis Tria is expected to have a lasting impact on the company's revenue mix and business strategy, solidifying its position as a leader in the IT services industry.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Investor Takeaway
Investors should consider Mphasis' strategic investment in AI technology for potential long-term growth.
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