Tech Mahindra Now Among Top 5 IT Cos.

by Manu Sharma    Apr 13, 2009

With the successful bidding of Satyam Computer Systems, Tech Mahindra will not only move up in software export rankings in the country, but also diversify into software outsourcing.

At present, the telecom company earns its revenue by providing IT services to global telecom clients, BT being its single largest client. The company also provides a wide variety of services ranging from IT strategy, managed services and consulting to system integration, design, application development, implementation, maintenance and product engineering.

According to Chandramouli, director-advisory services, Zinnov Management Consulting, "Tech Mahindra will be able to de-risk from being a single vertical focused organization and will be able to acquire marquee clients going forward across other verticals. Besides it will be able to foray into other verticals inorganically and will be able to expand to various geographies using Satyam’s spread."
 
While this acquisition will put Tech Mahindra among the Top 5 IT services companies, it will also put the management’s potential to severe test over the next 2-3 years in gaining visibility and customer confidence, said Chandramouli.

As for the impact on customers, Chandramouli said, the acquisition will see integration over the next 12-18 months, during which they will observe a change in management process, wherein they themselves will have to get involved and participate actively.

The announcement of the winning bidder has ended the three-month ordeal of about 50,000 Satyam employees. Tech Mahindra emerged as the top bidder with an offer of Rs 58/share for a 31% stake ahead of L&T.

 

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