While Rahul Bhuman
will focus on strategic initiatives in the area of education and finance, Raghav Kumeria
will head a team for a new business initiative by launching a platform to provide remote technical support services for telecom companies and Internet service providers (ISPs).
Kumeria joined Tech Mahindra in November 2006 and was senior manager, platform services, while Bhuman was head of the smart grid competencies division at Mahindra Satyam. Both are yet to be assigned their new titles.
In their early 30s, Kumeria and Bhuman have been picked as part of an initiative by Tech Mahindra to identify 30 segment leaders who can help the company, which is combining with Mahindra Satyam (the rebranded Satyam Computer Services Ltd), achieve its $5 billion revenue target by 2015, as Mintreported on 15 February. The two earned combined revenue of $2.5 billion in the nine months ended December.
Tech Mahindra, which bought Hyderabad-based Satyam in an April 2009 auction after the company fell into a crisis following an accounting scandal, is awaiting the Andhra Pradesh high court’s approval to proceed with the merger.
, vice-president of human resource at Mahindra Satyam, said in an interview on Monday that the “Young CEO” programme was not linked to the merger process.
“It is an initiative taken by the HR department to promote young talent. It is an ongoing programme kick-started now (April).” He added that the company hopes to identify at least five more Young CEOs by the end of 2012.
The young CEOs are being selected through a process that involves nominations received from senior leaders, one-on-one interviews and final validation by their business group heads, Soin said.
They are being drawn from the 80,000-odd employees of Tech Mahindra and Mahindra Satyam.
The young CEOs, said Soin, will focus on five key growth areas—mergers and acquisitions, new business initiatives, partnerships, joint ventures and new geographies, while core operations will be carried out in the existing structure comprising internal business groups (IBG) and geography heads. They are also expected to develop capabilities in new technologies like mobility.
Each “Young CEO” will be given own teams for sales, delivery and domain support, access to finance and human resources and can seek top management intervention directly, said Soin, adding, “the returns can be quantified only after a year or so”.
“We will partner with our existing telecom clients in a white label shared services model, to enable them monetize cost or/and open up a new revenue stream in a natural area of adjacency. We will be light on partner side investments and high on returns” said Kumeria.
He added: “To reach $5 billion in revenue by 2015, we have isolated a couple of initiatives which are going to be in the market for tomorrow. If we move in now, we will receive significant traction.”
While the programme has been conceived and is being overseen by Tech Mahindra managing directorC.P. Gurnani
, it is being mentored by Sujit Baksi
, president–corporate affairs and business services group.
Tech Mahindra’s legal merger with Mahindra Satyam has been pushed back by six months up to 30 September, according to a filing by the company to BSE on 25 March. The Andhra Pradesh high court is currently hearing a plea by retail investors who have opposed the proposed share swap ratio of 2:17 (two shares of Tech Mahindra for 17 shares of Mahindra Satyam) for the merger.
“The high court order pertains to the legal merger. Operationally, they started working in cohesion within two years of the Satyam acquisition. Since then, they have been trying to integrate the two companies ambitiously,” said Alok Shende
, founder and director of information technology (IT) research and consulting firm Ascentius Consulting.
Tech Mahindra earns almost all its revenue from the telecom sector. After the legal merger with Mahindra Satyam, analysts expect the contribution of telecom to combined revenue to decline to at least 50% because of Mahindra Satyam’s presence in other verticals such as banking, financial services, insurance and healthcare.
“Their issues with the declining telecom business will get offset by other growth drivers and diversification will help accelerate their growth. Then 13% revenue growth will be sustainable,” he added.
BT is Tech Mahindra’s top client, contributing 29% to the company’s dollar revenue of $329 million in the third quarter ended 31 December, compared with 33% in the preceding quarter and 35% in the same quarter in the previous year.
Shares of Tech Mahindra declined 1.1% to Rs.924.70 on a day the BSE’s benchmark Sensex edged up 0.05% to 19,179.36 points.