Tech Mahindra

Description
Tech Mahindra

Tech Mahindra

‚Leaders don't look behind, they don't look to the side; they look ahead. So as far as I am concerned we are looking to be the best telecommunication service provider in the world. We have been recognized by major agencies in the world as being amongst the top and we are ranked with the best in the world. So we benchmark not just with our peers here, but we benchmark with the best in the world.?

? Anand Mahindra, Chairman,
Tech Mahindra Ltd.

Mahindra Group
• One of the largest business conglomerates in India
– Incorporated as Mahindra & Mohammed on Oct 2nd 1945 by Mahindra brothers & Ghulam Mohammed – Renamed Mahindra & Mahindra after Ghulam Mohammed’s exit in 1947 – Over the next 60 years, it diversified its operations across various sectors like automotive, farm equipment, trade & logistics, hospitality, information technology, infrastructure, financial services – US $ 6.7 billion group

• 1986 - Joint venture between Mahindra group & British Telecommunications plc
– Company was named Mahindra-British Telecom (MBT)

Industry - Timeline
1960 - Indian government set up Department of Electronics (DOE) 1970 - The first software was exported by TCS 1980 - Industry managed to reach USD 12 million Mid–1980 - Emergence of new players like Infosys, Satyam, Mastek, etc (body shopping) 1991 - Shift from body shopping to working from offshore Late 1990 - High growth : ‘Y2K’ problem, STP scheme by govt. 2000 - Dot com bubble burst 2002 - Fastest growing IT market and captured 70% of IT outsourcing market 2006 - High?end software services - BFSI, telecom, retailing and automotive segments 2008 - Global recession – US companies slashed their IT spendings

Temporal Evolution
• 1990s – MBT began geographic expansion • 1993 – Incorporated first overseas subsidiary, MBT International Inc • 1994 – Was awarded ISO 9001 certification by BVQI

• 1995 – Established first UK branch Office
• 2001 – Incorporated MBT GmbH, Germany Inc; Entered into strategic alliance with Rockwell Electronic Commerce • 2002 – Incorporated MBT Software Technologies Pte. Ltd., Singapore; Was assessed at Level 5 of SEI CMM by KPMG

Temporal Evolution
• 2003 – Re-certified to ISO 9001:2000 by RWTUV • 2005 – Acquired Axes Technologies (India) Pvt. Ltd.; Certified to BS 7799-2:2002 by RWTUV; Assessed at Level 5 of SEI CMMI by KPMG • 2006 – Name was changed from Mahindra-British Telecom to Tech Mahindra Ltd. • 2006 – JV with Motorola Inc under the name CanvasM • 2007 – Participated in Microsoft’s Connected Services Sandbox program and Acquired iPolicy Networks Pvt. Ltd. • April, 2009 – Acquired Satyam Computers • July, 2009 – Tie-up with WIN

Strategy
• A very clear focus on the telecommunication industry –Achieved a clear objective & strategic alignment by focusing on one segment –Clarity of goal • Endorsed as a thought leader in telecom industry

Decisions and Strategy
YEAR DECISIONS REASONING RATING

1986 – 2006 2006

Entered IT sector: JV with British Telecommunications

Post 2006

Strategic pre-emption – Mahindra wanted to enter into the business -found the resource & expertise of BT would enhance growth in Indian Software Industry. JV with Motorola Inc. Field of telephone software was booming under the brand name and providing expertise in that domain CanvasM would decrease the institutional voids •Incorporation of MBT GMBH Expand geographic (Germany):Re-certified to ISO 9001:1994 by presence BVQI

•Participation in Microsoft's Sandbox: collaborative environment to develop and test new communications services.

Decisions and Strategy
YEAR DECISIONS REASONING RATING

2007

Acquired iPolicy •Provided complimentary strong security services capabilities. Networks Pvt. •It got a core competency different from its Ltd. existent core competencies. Satyam Acquisition •Diversification •Acquire a better portfolio of customers. •Opportunity to rationalize shared functions •Global presence •Focuses on building a new platform to provide increased functionality and faster transactions •Will formulate a go-to-market strategy in key territories particularly targeting the Asian markets.

2009

2009

Tie-up with WIN

Strategic Alliances
• Tech M (44%) – BT JV (39%) - Domain knowledge for Tech M - IT infrastructure transformation for BT • Tech M (80%) – Motorola JV – ‚CanvasM? - Motorola’s mobile technology expertise - Motorola gained access to 11000 professional experts • iPolicy Networks Acquisition - complemented Tech M’s strong security offerings - enabled it to offer E2E security services to customers

Strategic Alliances
• Satyam Acquisition - ‚Mahindra Satyam? - Large client base - Land assets and premises - About 43,000 employees globally - Both companies benefit from ‚Management Practices? • Tech M – WIN Alliance - Jointly develop market strategies in the key regions - Tech M capitalizes on WIN’s investments in web? and WAP?based services - WIN gets access to Tech M's applications and outsourcing services

VRIO framework
Resource
In depth Knowledge of the telecom Industry ISO 9001 by BVQI Acquisition of Axes technologies Inc. CanvasM (joint venture with Motorola) Ipolicy networks private limited (Acquisition) Satyam Computers Tech Mahindra’s Management

Valuable Rare Inimitable Organisation
Y Y Y Y Y Y Y Y Y Y Y Y Y Y N N Y Y Y Y Y Y Y Y Y Y Y Y

P.E.S.T.E.L Analysis
Political
• Stable Indian Government • Sunrise Industry Status • Anti Outsourcing Drive

Technology
• Free wares • Open source

Economic
• Exchange Rate Fluctuations • STP and Fringe Benefit Tax

Environment
• Terrorism • Contagious Diseases

Social
• Focus on Education in India

Legal
• Legally Complaint

SWOT Analysis
Strong clientele Superior knowledge in telecom domain Good Ranking Highly dependent on telecom Industry High degree of customer concentration

SWOT
Geographical expansion Expansion into other business verticals Versatile services to different telecommunication companies Tax benefits to expire by 2010 High degree of competition High volatility in exchange rates

Current state of Affairs
• Management is a challenge – Capabilities are far broader than TM's own background • Legal Liabilities – it has inherited from Satyam • Mahindra Satyam – an I.T. project to provide WC Football match details on mobile phones • In future, though Tech M’s revenues from BT is expected to proportionately fall – however it would be made up by revenues from other verticals

THANK YOU!!



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