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Tech Mahindra and the purchase of Satyam Computers: 10 years, 10 learnings

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April 13, 2019, marks the tenth anniversary of one in every of the most important occasions inside the company records of India – the acquisition of Satyam by using Tech Mahindra. Prior to the purchase, Tech Mahindra was a gap player that derived 100% of its sales from the telecom vertical. On the alternative hand, Satyam turned into the fourth largest Indian IT services employer in terms of sales, indexed in each the Indian and US inventory exchanges. It had over 50,000 employees with operations in 66 countries and counted 185 Fortune 500 organizations as clients.
Tech Mahindra and its discern business enterprise – the Mahindra Group saw the acquisition of Satyam as a strategic opportunity to transport to the subsequent degree of increase. The acquisition could allow the Group to diversify across verticals, customers, and geographies, marketplace a wide range of offerings to Satyam’s robust customer base.
Termed as a clearly bold try – not simply in the scale and length, but also in terms of dealing with expectations – of the traders, clients and the employees. The daunting venture changed into made viable with Tech Mahindra’s decisive management. The merger places forth a few extraordinary training which most new-age organizations can imbibe to show around any adverse state of affairs and make the most of the sort of situations:
Risk Taking Capabilities:- “If you dare not anything, you benefit not anything,” every business pursuits for steady income and margins, however for long time profitability, one desires to appearance beyond natural increase opportunities i.E. Obtaining/making an investment in new enterprise opportunities. This will help in staying applicable on this all the time the evolving market.
Humane technique:- Mergers and Acquisitions (M&As) is a demanding/attempting affair for not just the management however the personnel and different stakeholders. Motivating employees to a not unusual purpose is one of the key precedence areas.
Building accepts as true with:- Collective selection making by means of constructing consider amongst various internal stakeholders holds the important thing to success, at some point of any M&A scenarios. Therefore, it is advisable to maintain all of them updated approximately your movements.
Retaining & nurturing Talent:- Your personnel are your biggest asset. Invest in their schooling and talent-constructing so that they churn out the first-class-in-magnificence solutions to your clients’ troubles. Implement worker connects programmes to cope with all their grievances and applaud their hard paintings.
Client conversation and figuring out possibilities that help you build scale:- Connect with the prevailing clients and provide them the warranty that they need – how you may preserve to better serve all your clients. Use your information and talents to win their precious vote of believe and loyalty. In a few instances, it may even get you more leads.
Preserving shareholder value:- The goal of any successful management is to increase sales, earnings, and unfastened coins float which similarly translates into extended dividends and capital gains for its fairness proprietors. Never lose sight of the identical.
Transparency:- Keeping the communication clear and crisp allows as it curbs rumors and dispels doubts associated with any unique company move by using the management
Embracing the trade:- Change is the only consistent, whether or not it is approximately adopting new technology, new production strategies or incorporating new policies, be organized to stand the trade and adapt with the converting instances.
Corporate Governance & corrective movements:- Identity and evaluation key tactics to discern out the regions that want instantaneous management attention. Address the equal by means of incorporating necessary tests and balances like new guidelines and recommendations. This will even help construct a framework for future paintings lawsuits.
Last but now not least, make efforts to talk your endeavors in handling the merger with outside stakeholders – the government, industry, and media. Your fine practices could make up for an exciting case have a look at and getting to know factor for others which they might emulate as and while the state of affairs arises.

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