10 years on: Tech Mahindra CEO on navigating 'the Titanic called Satyam'
Prior to acquiring Satyam, Tech Mahindra was a niche player deriving almost 100 percent of its revenue from the telecom business
Image: Noah Seelam/ AFP/ Getty Images
April 13, 2009, changed the course of Indian corporate history. Fraud-stricken Satyam had dealt a blow to corporate India’s reputation world-over. However, Satyam has not only survived but has flourished as Tech Mahindra to tell the tale of its triumphs and struggles. It was this day that we at Tech Mahindra won the bid for Satyam. After wrapping up a hectic day and press conference at the Mahindra headquarters in Mumbai, I was flying back to Hyderabad, when the air hostess announced my presence in the flight…a loud applause suddenly broke my chain of thought. It was a moment of reckoning: The magnitude of the event and the spotlight that came with it, had hit home. I realised the huge responsibility that lay in front of us: Navigating the Titanic called Satyam. It was truly a defining moment in India’s corporate history that established Tech Mahindra as a ‘turnaround and people centric company’. We had turned a crisis into an opportunity.
Prior to acquiring Satyam, Tech Mahindra was a niche player, deriving almost 100 percent of its revenue from the telecom business. We saw Satyam as a strategic opportunity to achieve the next level of growth that would give us entry into new markets and a diversified portfolio across verticals.
The merger that now seems like a ‘perfect match’ came with its own share of challenges. We were facing 15 lawsuits, regulators and agencies were considering blacklisting us, there were investigative agencies and disillusioned employees around us. What ensued the acquisition was a ‘rescue mission’ aimed at resurrecting the ship called ‘Satyam’, through a series of corrective actions. The project was termed “Operation spring back”.
Padma Parthasarathy was appointed the chief integration officer, to create synergies and collaborate at a granular level. I must say we had many well-wishers: The President of the industry body NASSCOM at that time, Som Mittal, assured us that they would not let this ship sink and played the crucial role of getting everyone together for the common cause during and after the crisis at Satyam.
Corporate governance, shareholder value protection, business and revenue management, transparent communication and talent management were the other high priority agendas that had to be set right. The road to recovery was bifurcated into three phases: Resurrection, rejuvenation and growth. We did not chase large deals, instead focused on getting small ones and executing them.
Soon, client contracts were reinstated. The company started delivering jobs to its customers ahead of schedule. One thing was clear: We were all hungry for an exponential growth charter.
Our run, change and grow strategy has helped us deliver a strong 10 percent sequential growth in digital revenues.