When Vineet Nayyar joined Tech Mahindra (called Mahindra British Telecom), it was a mere $110-million company. Today, it has revenues close to $3.9 billion, and is the second biggest company in the Mahindra Group with a share of 23 per cent of group revenues. It is also No. 6 in the Indian IT services pecking order – after TCS, Cognizant, Infosys, Wipro, and HCL Technologies. Most of the growth has come in the past three years, as the company followed an aggressive acquisition-led strategy. Sitting in his plush yet elegant home in Delhi’s tony Friends Colony, and surrounded by several paintings of M.F. Husain, Nayyar, Vice Chairman of Tech Mahindra, says: “There are two aspects (to acquisitions). One is finding the right asset. But, far more important is to make it work. And that is where we differentiate.”
Virtualisation software maker VMware expects the takeover of its parent, EMC Corp, by Dell to help it make inroads into the small and medium enterprises and businesses market in India, where the US technology giant has a large presence.
After Telenor, Sistema Shyam Teleservices (SSTL), which runs under the brand MTS, is all set to provide insurance cover to its data subscribers. For the first time, with Telenor, a telecom operator has started offering life insurance to its new and existing customers, with covers from Rs 5,000 to Rs 50,000. SSTL has tied up with Oriental Insurance company to provide Rs 1 lakh accidental insurance cover to its new data subscribers.
Vodafone India has started talks with software major IBM for renewal of a $1 billion (Rs 6,600 crore) outsourcing contract that is set to expire in June 2016, while also sounding out Wipro, Tata Consultancy Services, Infosys and Tech Mahindra, two people familiar with the matter said.
Private equity firm Blackstone has acquired a majority stake in Serco’s BPO operations for £250 million (₹2,558 crore). This is the largest such deal for Blackstone in India. The sale does not include the UK business of Serco Global Services, which will be divested later.
The deal is expected to bring back some action in the Indian BPO market, which has not seen any major consolidation in the recent past. According to Nasscom, revenue from the Indian IT-BPM industry stood at $146 billion last year, growing 13 per cent last year and commanding a 55 per cent global sourcing share. The domestic market itself is rapidly growing with business coming from e-commerce companies and start-ups.