Tech Mahindra and Satyam: a cake worth the bite

PUNE, INDIA: Tech Mahindra has emerged as the winning bidder in the Satyam fray. This could bring the much-awaited turning point in the Satyam saga. But more than that, it could be a big wise step that could redefine Tech Mahindra's future.

As analysts see it, for a telco-domain specialist like Tech Mahindra, going forward for a broad spectrum services major, could change the game a lot and be the slingshot to the top bracket of IT global biggies.

With about 95 per cent of revenues coming from telco space, quite a niche business area, this deal is the only way, Tech Mahindra could have put its tents pitched well inside verticals beyond telecom.

As Girish Trivedi, deputy director, ICT Practice, Frost & Sullivan, South Asia & Middle East views it, "This is very good strategic move by the company and a quick smart way to be in a league where thanks to Satyam, it would have good visibility, revenues, good Fortune class customer base and stellar clients like GE. It will also help it move away from the image of a BT-Driven vendor and look out for other multi-year plum global contracts."

According to some analysts, "this deal would establish Tech Mahindra as a serious player among the Top Five global vendors and make it rub shoulders with the likes of IBM, HP as well as be in the Top 3 consideration list for multi-million contracts. If it can take the deal ahead smartly."

Now the 'if' part could indeed be the clincher. Integration, blending the 50,000 employee base of Satyam with about 25,000 of its own, integrating the people and process areas successfully and handling the legal and image baggage of Satyam would add a lot to that 'if'.