Tech Mahindra looking to trim costs at Satyam
Date: May 24th, 2009
Some recent headlines point to the fact that Tech Mahindra has been working on internal reorganization of the combined organization as clients and top management continue their exodus from Satyam.
Some names at Satyam leaving the organization are Naresh Jhangiani, global head of HR at Satyam BPO, V Satyanandam, head of corporate services and Kulwinder Singh, head of marketing (Asia Pacific), Satyam.
Satyam Client List
A number of clients which have moved their business away from Satyam are:
Coca Cola Co., GlaxoSmithKline (GSK), Telstra (Australian Telecom firm),Applied Materials, State Farm Automobile Insurance, Agilient and Lowes.
Some other clients they have which may be looking to move business away from Satyam:
Assurant, Visa Inc., Citigroup, Merrill Lynch, Selective Insurance Group Inc., SanDisk Corp., Novartis and Caterpillar.
These are premier clients and losing these will be tough for Tech Mahindra to get back in today’s economic environment.
With BT and telecom going through their own issues and being the largest vertical for Tech Mahindra, this seems to be an uphill battle for Tech Mahindra as of now.
Recent comments by Vineet Nayyar, CEO Tech Mahindra on potentially a redundancy of 8000+ people in the combined organization does not help with the chaos.
What can client do ?
For clients which are working with Satyam currently, there are tough choices. The process of moving work from Satyam to another vendor is not a simple one and involves cost and time. Keeping work in Satyam and having to deal with the uncertainty and lack of potential focus from employees and management is a key challenge too.
Either way there is risk involved and companies have to figure out how to minimize the impact of the transition. Along with the risk is the additional cost for the transition and potential pushback in business case realization for companies.
There is no easy solution but for Satyam customers they have to be realistic and be prepared for additional work and cost to handle the transition to another vendor or decision to stay along for the ride till the situation stabilizes.
