We’ll hire 500 engineers in India in 2024 with a focus on data science: Marlabs’ CEO Thomas Collins

New York-based IT services and consulting firm Marlabs helps companies of all sizes and industries undergo digital transformation. With offices in the US, Canada, India, Germany, and Brazil, the company is optimistic about India's talent in data engineering and aims to use its data science and artificial intelligence (AI) techniques to expand its digital presence worldwide. During his visit to India this week, Thomas Collins, CEO of Marlabs, told TechCircle in an exclusive interaction, about the company's current focus on the Indian market, its exploration of AI and data science, and its future plans. Edited excerpts:

What factors are driving the growth of Marlabs India as a market or a resource base for products or services? How does the Indian market compare to other global markets?

While the US remains our main market, with over 80% of our revenue coming from American clients, our team is predominantly located in India, allowing us to cater to these clients effectively. The growth we have observed in the Indian market can be attributed to two main factors. Firstly, our partnerships with multinational companies in India have played a crucial role in expanding our business in the country. Secondly, the increasing investments in the tech sector due to the rise of the middle class in India have created opportunities for growth, especially in areas like fintech. As our top talent is based in India, we are well-positioned to serve potential Indian clients. When comparing the Indian market to other global markets, particularly over the past five years, we have noticed significant maturity in terms of programs and digital transformation initiatives. For instance, the payment market in India has shown more advanced consumer adoption of digital solutions compared to the US, presenting us with promising growth opportunities in India.

How has the recent acquisition of OneBridge provided Marlabs with a competitive advantage?

It's truly a game-changer for us, to be honest. It's highly complementary and fits extremely well into our strategy, which is to focus on the verticals we discussed earlier. OneBridge has a strong focus on life sciences and healthcare, with 80% of their business in that sector. The second focus is on data and AI, which aligns with our service line perspective as we move forward into the future. Additionally, OneBridge works with different tech stacks than we have in the past. They are much more consultative, and when combined with their capabilities, we can offer end-to-end services for our clients, particularly in life sciences and data engineering services. This acquisition is crucial for us and reinforces our strategy moving in this direction.

In what ways does Marlabs utilise AI and ML to help clients accelerate their digital transformation?

I'll give you two examples, one from the medtech space, specifically the medical device industry, and the second one from a large hospital provider where we are utilising AI and data. The first example involves a medical device company that offers solutions for hospitals to sterilise equipment. They used to sell expensive machines, which made it difficult for medium-sized hospitals to invest in them. They approached us for support in transforming their business model to provide sterilisation as a service instead of selling machines. Now, they are paid based on the usage of the machines, thanks to data analytics. This transformation was only possible with our solution.

The second example delves deeper into the AI component. We developed a solution for a large hospital provider by analysing data received from patients' hearts to identify patterns that could reduce the probability of cardiac arrests. By using our solution to analyse their patients, they can now identify and reduce the likelihood of heart attacks by providing better treatment in advance. I am particularly proud of this use case because we are truly saving lives with the work we are doing.

What kind of challenges do you see companies facing when implementing emerging technologies like Gen AI and advanced analytics? How are you solving these complexities?

Implementing emerging technologies is challenging due to adoption obstacles. Job displacement fears hinder acceptance. Acquiring OneBridge provides skilled consultants to guide clients through this transformation. Embracing change is vital for successful integration. We focus on advisory services rather than execution, specialising in AI. Our consultative approach helps clients govern AI solutions effectively. Ethical concerns in healthcare settings are addressed, aiding decision-making and setup using emerging technologies.

Which verticals are you focusing on now and in the coming quarters?

We primarily focus on life sciences and healthcare, as evidenced by our recent acquisition of OneBridge and our global client base. We also specialise in financial services, particularly Fintech and lending, as well as telco, media, and technology. While manufacturing is currently less of a priority, we plan to increase our focus in that area soon. In the life sciences sector, we see great potential in data integration, engineering, data analytics, and AI for driving our future growth.

What is the Marlabs India team's contribution to the overall global operations, and what are your hiring plans for talent and resources in India for the next year?

India is the most important local market for our company. We have established offices in four different cities: Bangalore, Mysore, Kochi, and Pune. Even within Bangalore, we have three separate locations. Moreover, half of our executive leadership team is based in India. This location provides us with a vast pool of exceptional talent that drives our initiatives, making it indispensable for our talent base, operational space, and cultural perspective. I perceive India as the core of our company. To support our growth, particularly in the data engineering field, we have plans to hire up to 500 engineers in India by the end of this year. The recent acquisition of OneBridge has opened up even more opportunities in that domain, necessitating the need for additional skilled professionals to support our business.

What other areas or domains would you consider for further acquisitions and what size targets are you looking at?

OneBridge was about a quarter of our business size, which was a significant acquisition for us. Our plan is to double the business in the next three years, both organically and through acquisitions. M&A is a key part of our strategy, and we will continue to focus on vertical and solution expansion. While OneBridge is helping us grow our life sciences business, we are also exploring opportunities in other verticals, particularly financial services. Our focus will remain on data, AI, and digital product engineering. We will actively pursue acquisitions, ranging from small teams with specific talent and a few clients to larger acquisitions like OneBridge. This range is where we are looking for potential acquisition targets.

In January 2022, private equity firm BV Investment Partners invested in Marlabs. So how has that helped the company in scaling up and what is the liquidity window?

BV is an extremely valuable partner. Being a strong financial partner providing funds for the acquisition, it was crucial for them to help finance the deal. We are their platform company for data and engineering services. We see a bright future ahead, especially considering that they usually have a liquidity event for their companies within a year window. We are currently two years into the investment from BV. There is a possibility that something could happen in the next three years, but they also have investments where they stay in for 10 years or more. It all depends on market conditions and potential partners.