Tech Mahindra and the acquisition of Satyam Computers: 10 years, 10 learnings
"The merger that seems like a 'perfect match', came with its own share of challenges. It gave us a perspective on our approach towards the future. It is a living testimony of how the intent and clinical ownership by each individual, helped us in successfully turning around a hostile situation."
- Apr 13, 2019,
- Updated Apr 13, 2019 10:16 PM IST
April 13, 2019 marks the 10th anniversary of one of the biggest events in the corporate history of India - the acquisition of Satyam by Tech Mahindra. Prior to the acquisition, Tech Mahindra was a niche player that derived 100% of its revenues from the telecom vertical. On the other hand, Satyam was the fourth largest Indian IT services company in terms of revenue, listed in both the Indian and US stock exchanges. It had over 50,000 employees with operations in 66 countries and counted 185 Fortune 500 companies as customers.
Tech Mahindra and its parent organisation - the Mahindra Group saw the acquisition of Satyam as a strategic opportunity to move to the next level of growth. The acquisition would allow the Group to diversify across verticals, customers, and geographies, market a wide range of services to Satyam's strong customer base.
Termed as a truly daring attempt - not just in the scale and size, but also in terms of managing expectations - of the investors, customers and the employees. The daunting task was made possible with Tech Mahindra's decisive leadership. The merger puts forth some amazing lessons which most new-age businesses can imbibe to turn around any hostile situation and make the most of any such situations:
- the government, industry and media. Your best practices could make up for an interesting case study and learning point for others which they could emulate as and when the situation arises.
(The author is the MD and CEO of Tech Mahindra.)
April 13, 2019 marks the 10th anniversary of one of the biggest events in the corporate history of India - the acquisition of Satyam by Tech Mahindra. Prior to the acquisition, Tech Mahindra was a niche player that derived 100% of its revenues from the telecom vertical. On the other hand, Satyam was the fourth largest Indian IT services company in terms of revenue, listed in both the Indian and US stock exchanges. It had over 50,000 employees with operations in 66 countries and counted 185 Fortune 500 companies as customers.
Tech Mahindra and its parent organisation - the Mahindra Group saw the acquisition of Satyam as a strategic opportunity to move to the next level of growth. The acquisition would allow the Group to diversify across verticals, customers, and geographies, market a wide range of services to Satyam's strong customer base.
Termed as a truly daring attempt - not just in the scale and size, but also in terms of managing expectations - of the investors, customers and the employees. The daunting task was made possible with Tech Mahindra's decisive leadership. The merger puts forth some amazing lessons which most new-age businesses can imbibe to turn around any hostile situation and make the most of any such situations:
- the government, industry and media. Your best practices could make up for an interesting case study and learning point for others which they could emulate as and when the situation arises.
(The author is the MD and CEO of Tech Mahindra.)