Indian IT services company Tech Mahindra has reported over $3bn sales for its latest financial year and increased its profits by over 38%, as the business that acquired scandal-hit Satyam gathers momentum.
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The former Satyam business was recognised within the top tier of Indian IT services firms alongside Tata Consultancy Services, Infosys, Wipro and Cognizant before it was shaken by a billion dollar internal fraud.
The company reported sales worth $3.01bn in the last 12 months with a profit of $498m. These were 17.7% increases and 38.6% increases respectively.
The company’s European head Vikram Nair told Computer Weekly the company is already back in the top tier. “If you measure quarter-by-quarter growth we are already in the top group.”
Satyam was rescued from collapse by Tech Mahindra in 2009 following a massive internal fraud, but what is its recipe for once again being top billing?
More on Satyam from crisis to growth
- Satyam chief B Ramalinga Raju admits to fixing the outsourcer's books
- New Satyam board must find cash, retain customers and hang onto staff
- Satyam message to stakeholders via YouTube following fraud scandal
- Satyam staff exodus as fraud unravels
- Mahindra Satyam recovery gathers pace with European expansion
In January 2009, then Satyam chairman B Ramalinga Raju admitted to misreporting the company's financial figures to the tune of $1bn.
Tech Mahindra’s background is in the communications sector whereas Satyam is software development. The combination of the two has lifted Tech Mahindra revenues from $1.2bn in 2009 to over $3bn today.
The total global workforce is now 89,441, with 60,997 working in software. The head count stood at, 21,830 in BPO and 6,614 in support.
The combined entity opens up more and larger deals for the company. The combination of Tech Mahindra’s telecoms legacy and Satyam’s enterprise software heritage is complimentary.
Tech Mahindra was previously focused on providing Telcos with billing and operating systems. now, with the Satyam expertise, it can offer ERP [enterprise resource planning] and BI [business intelligence] software, for example.
In other sectors, rather than Satyam just focusing on software such as ERP and BI, it sells billing and CRM systems.