
Financial Daily from THE HINDU group of publications
Friday, Apr 17, 2009
Tech Mahindra nominees brace for Satyam challenge

Mr. Vineet Nayyar
Adith Charlie |
Mumbai, April 16 The four Tech Mahindra nominees tipped to be on the board of Satyam Computer Services will have to dip into every chapter of their 115 years of collective experience as they begin their new innings.
They not only have to turn Satyam into an EBITDA positive company, but also ensure Tech Mahindra’s own clientele that the buyout will not impact its commitments to timeliness and service delivery, analysts feel. |
Since the structure and the nature of the two businesses (Satyam and Tech Mahindra) are very different, their integration is going to be tricky, Mr. Anthony Miller, Managing Partner with analyst house TechMarketView, has been quoted as saying by silicon.com
“It is going to take up a lot of Tech Mahindra’s time while they try to make the business work and that could have an impact on their customers and BT (Tech Mahindra’s largest customer),” he told the Web site.
On Wednesday, Tech Mahindra had sought CLB’s permission for allowing it to induct Mr. Vineet Nayyar (Vice-Chairman & Chief Executive Officer of Tech Mahindra), Mr. Ulhas N. Yargop (Director), Mr. Sanjay Kalra (President - Strategic Initiatives), and Mr. C.P. Gurnani (President - International Operations) on Satyam’s board.
Mr. Peter Schumacher, Founder-President and CEO of the US-based Value Leadership Group, feels that Tech Mahindra’s executive management has more experience managing a firm like Satyam than Tech Mahindra itself.
“This is a highly capable management team with the diversified experience to lead an IT services firm with the broad business portfolio of Satyam,” he said.
Individual portfolios
Interestingly, three of the four persons mentioned above have had associations with the Noida-based HCL in their previous avatars. The 70-year-old Mr. Nayyar previously has served as the Managing Director of HCL Corporation Ltd and HCL Perot Systems. For him the new responsibility comes at an interesting point of his 40-year-career especially when he is expected to retire at the end of this fiscal. With the Satyam buy, his exit looks highly unlikely as Mr. Anand Mahindra is already short of experienced hands to run the Satyam-Tech Mahindra combine.
Mr. Kalra spearheads the BT relationship, R&D services for telecom equipment manufacturers and transformation/business process reengineering services. Prior to joining Tech Mahindra, he was the Chief Executive Officer of DSL Software (a joint venture between HCL and Deutsche Bank), which is focused on IT and BPO solutions to Capital Markets. Mr. Sanjay Kalra, according to Mr. Schumacher, managed the Deutsche Software operation and grew this from almost nothing to a few thousand headcount.
Mr. Gurnani spearheads Tech Mahindra’s Global Operations, Sales and Marketing functions along with development of Competency & Solution Units. Prior to Tech Mahindra, he was the Chief Operating Officer and Founder of Perot Systems (India) Ltd, initially set up as HCL Perot Systems.
Mr. Yargop serves as the President of Telecom & Software Sector of M&M. Previously he was Treasurer of the company and General Manager of the erstwhile Mahindra-Ford.
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