This past weekend brought news of a mega business deal in India. Tech Mahindra was the highest bidder (at $1.2 billion) for Satyam Computer Services, a large and fraud-ridden information technology/outsourcing company that had been taken over by the Indian government after a series of scandals. Tech Mahindra is set now to become India’s 4th largest outsourcing company, reaching a wide variety of sectors. And Tech Mahindra’s executives worked quickly to reassure Satyam’s big (American) clients that they would retain quality service and care. Tech Mahindra’s Chairman Anand Mahindra issued a statement:
“To all our customers, I would like to say we will give our highest priority to restoring your confidence and earning your faith in the future of Satyam. I plan to reach out at the appropriate time to some of Satyam’s largest customers at Cisco (CSCO.O), Citibank (C.N), and General Motors (GM.N).” Read more.
This large business deal is proof that India’s outsourcing market remains alive, influential and vital to the Indian economy. At a time with many protectionist voices, particularly in the US, are calling for an end to corporate outsourcing, the reality is that companies like India’s Tech Mahindra, Tata Consultancy Services and Wipro Technologies continue to wield economic power. As other rising powers increase their military prowess and energy sectors, India will continue to develop one of its key strengths – its plethora of remote offices for Western companies.
