Tech Mahindra (IT) co. headquartered in Pune. co. joint venture between Mahindra & Mahindra and British Telecommunications.
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What is the business model of Tech Mahindra?

April 5, 2023No Comments

Introduction for Tech Mahindra Company-

Tech Mahindra is a multinational information technology (IT) company headquartered in Pune, India. The company was founded in 1986 as a joint venture between Mahindra & Mahindra and British Telecommunications plc (BT), and has since grown to become a leading player in the IT industry.

With a presence in over 90 countries and serving clients across various industries, Tech Mahindra offers digital transformation, consulting, and business reengineering services. The company’s primary focus is on providing innovative and agile digital solutions to clients, leveraging emerging technologies such as artificial intelligence (AI), machine learning, blockchain, and cloud computing.

Tech Mahindra has a history of strategic acquisitions and partnerships to strengthen its capabilities and expand its market reach. The company has acquired several IT firms over the years, including Satyam Computer Services Ltd. in 2009, and has formed strategic partnerships with leading technology providers such as IBM, Microsoft, and Amazon Web Services (AWS) to offer cutting-edge solutions to clients.

Tech Mahindra has a strong focus on customer-centricity, with a client-centric approach that has helped it establish long-term relationships with its clients and drive repeat business. The company has a workforce of over 130,000 employees and reported revenue of USD 5.1 billion in the fiscal year 2020-21.

What is the business model of Tech Mahindra?

Tech Mahindra is a multinational information technology (IT) company that provides digital transformation, consulting, and business reengineering services to various industries. The company’s business model revolves around offering a range of IT services and solutions to clients, leveraging technology to improve their business processes and enhance customer experience.

Tech Mahindra generates revenue primarily through the following three business segments:

  1. Communications, Media, and Entertainment (CME): This segment provides IT solutions and services to clients in the telecommunications, media, and entertainment industries. The services include network engineering, data center management, cloud services, and digital transformation.
  2. Enterprise Business Solutions (EBS): This segment provides IT solutions and services to clients in various industries such as banking, healthcare, manufacturing, and retail. The services include enterprise resource planning (ERP), customer relationship management (CRM), supply chain management, and digital transformation.
  3. Consulting and Services Integration (CSI): This segment provides consulting and integration services to clients across all industries. The services include strategy consulting, enterprise architecture consulting, and systems integration.

In addition to these three segments, Tech Mahindra also offers specialized services such as cybersecurity, data analytics, and artificial intelligence (AI) solutions to cater to the changing needs of the industry.

Overall, Tech Mahindra’s business model is focused on delivering technology-driven solutions and services to clients across various industries, with a focus on digital transformation, cost optimization, and improving customer experience.

What is the main business of Mahindra and Mahindra?

Mahindra and Mahindra is a diversified Indian conglomerate with operations across various sectors, including automotive, farm equipment, hospitality, financial services, and more. The company’s main business is the automotive sector, where it is a leading player in the Indian market and has a significant presence in the global market as well.

Mahindra and Mahindra’s automotive sector primarily focuses on manufacturing and selling a wide range of utility vehicles, SUVs, commercial vehicles, electric vehicles, and tractors. The company has a strong portfolio of brands that includes Mahindra, SsangYong, Pininfarina, and more.

In addition to the automotive sector, Mahindra and Mahindra has a significant presence in the farm equipment sector, where it designs, manufactures, and sells tractors, farm machinery, and implements under the brand name Mahindra. The company has a market share of over 40% in the Indian tractor market and exports its products to several countries worldwide.

Mahindra and Mahindra also has a presence in other sectors such as hospitality, financial services, and information technology. The company owns a chain of resorts and operates a time-share holiday business under the brand name Club Mahindra. It also provides various financial services such as insurance, mutual funds, and banking. Additionally, Mahindra and Mahindra has an IT services subsidiary called Tech Mahindra, which provides IT solutions and services to clients worldwide.

Overall, Mahindra and Mahindra’s main business is the automotive sector, followed by the farm equipment sector, and the company also has a presence in several other sectors.

What is the background of Tech Mahindra?

Tech Mahindra is a multinational information technology (IT) company headquartered in Pune, India. The company was founded in 1986 as a joint venture between Mahindra & Mahindra and British Telecommunications plc (BT), with Mahindra & Mahindra holding a 51% stake and BT holding a 49% stake.

Initially, the company was established as a joint venture to provide software development and IT services to BT and its customers. Over time, Tech Mahindra expanded its client base and diversified its service offerings, becoming a leading player in the IT industry.

In 2006, BT sold its stake in Tech Mahindra to Mahindra & Mahindra, making it a wholly-owned subsidiary of the Mahindra Group. Since then, Tech Mahindra has grown rapidly through a combination of organic growth and acquisitions, expanding its global footprint and service offerings.

Today, Tech Mahindra is a leading provider of digital transformation, consulting, and business reengineering services, with a presence in over 90 countries and serving clients across various industries. The company has a workforce of over 130,000 employees and reported revenue of USD 5.1 billion in the fiscal year 2020-21.

Who is board of director of Mahindra?

The board of directors of Mahindra & Mahindra Ltd. (M&M) includes the following individuals:

  1. Mr. Anand G. Mahindra – Non Executive Chairman
  2. Mr. C. P. Gurnani – Managing Director & CEO
  3. Dr. Anish Shah – Non Executive Director
  4. Mr. Haigreve Khaitan- Independent Director
  5. Ms. M. Rajyalakshmi Rao- Independent Director
  6. Mr. Manoj Bhat- Non-Executive Director
  7. Dr. Mukti Khaire- Independent Director
  8. Ms. Penelope Fowler-Independent Director
  9. Ms. Shikha Sharma-Independent Director
  10. Mr. T. N. Manoharan, Independent Director

( Source: Tech Mahindra website)

The board of directors is responsible for overseeing the management of the company and ensuring that it operates in the best interests of its stakeholders.

What is the share holding pattern of Tech Mahindra Company?-

  • Promoters – 35.17%
  • Foreign Institutions – 27.95%
  • Non Banks Mutual Funds -11.97%
  • Financial Institutions -11.97%
  • General Public – 9.87%
  • Foreign Promoters – 0.02%
  • Others – 2.88%

(Source : Economic times website)

This share holding pattern noted on 04/04/2023 which will changed in future regularly so please note the same data are changed time to time.

What is business strategies of tech Mahindra company?

Tech Mahindra’s business strategy is focused on providing digital transformation and IT services to clients across various industries, with a focus on innovation, agility, and customer-centricity. The company’s strategies include:

  1. Digital Transformation: Tech Mahindra’s primary focus is on digital transformation, helping clients to leverage emerging technologies such as artificial intelligence (AI), machine learning, blockchain, cloud computing, and more. The company works with clients to identify their digital needs, design and implement digital solutions that improve business processes and enhance customer experience.
  2. Industry-Focused Solutions: Tech Mahindra offers industry-focused solutions to cater to the specific needs of various industries, including telecommunications, banking, healthcare, manufacturing, and more. The company’s industry-specific solutions include data analytics, cybersecurity, and digital supply chain management.
  3. Agile Delivery: Tech Mahindra adopts agile methodologies for project delivery, enabling the company to respond quickly to changing client needs and deliver projects in a time-bound and cost-effective manner.
  4. M&A and Partnerships: Tech Mahindra has a history of strategic acquisitions and partnerships to strengthen its capabilities and expand its market reach. For example, the company acquired BORN Group, a New York-based digital content and commerce agency, to enhance its digital capabilities in the retail industry. Tech Mahindra also has strategic partnerships with leading technology providers such as IBM, Microsoft, and Amazon Web Services (AWS) to offer cutting-edge solutions to clients.
  5. Customer-Centricity: Tech Mahindra’s business strategy is centered around customer-centricity, focusing on delivering high-quality services and solutions that meet the specific needs of each client. The company’s client-centric approach has helped it establish long-term relationships with its clients and drive repeat business.

Overall, Tech Mahindra’s business strategy is focused on providing innovative and agile digital transformation services to clients across various industries, with a strong emphasis on customer-centricity and strategic partnerships.

What is the competition of Tech Mahindra?

Tech Mahindra operates in a highly competitive market and faces competition from several domestic and international players. Some of its key competitors are:

  1. Tata Consultancy Services (TCS): TCS is one of the largest IT services companies in India, with a global presence in over 46 countries. The company offers a wide range of services, including IT consulting, software development, and digital transformation.
  2. Infosys: Infosys is another leading IT services company in India, providing services such as IT consulting, software development, and engineering services. The company has a global presence in over 50 countries.
  3. Wipro: Wipro is an Indian IT services company that provides services such as IT consulting, digital transformation, and engineering services. The company has a global presence in over 50 countries.
  4. Cognizant: Cognizant is a US-based IT services company that provides services such as IT consulting, digital transformation, and engineering services. The company has a global presence in over 40 countries.
  5. Accenture: Accenture is a global professional services company that provides services such as strategy consulting, digital transformation, and IT services. The company operates in over 120 countries worldwide.
  6. IBM: IBM is a multinational technology company that provides services such as cloud computing, IT consulting, and artificial intelligence. The company operates in over 170 countries worldwide.
  7. Capgemini: Capgemini is a global IT services company that provides services such as IT consulting, digital transformation, and engineering services. The company has a presence in over 50 countries worldwide.

Overall, Tech Mahindra faces stiff competition from several large and established players in the IT services market, both domestically and internationally. To remain competitive, the company focuses on delivering high-quality services, investing in emerging technologies, and building strategic partnerships.

Critical Analysis of Tech Mahindra Company-

Tech Mahindra is a leading player in the IT services industry and has established itself as a trusted partner for digital transformation and IT services. The company has a strong focus on innovation, agility, and customer-centricity, which has helped it deliver high-quality services and solutions to clients across various industries. However, there are some critical aspects of Tech Mahindra that deserve analysis:

  1. Dependence on a few key clients: Tech Mahindra relies heavily on a few key clients for a significant portion of its revenue. This dependence on a few clients makes the company vulnerable to any changes in their business or economic conditions, which can impact Tech Mahindra’s revenue and profitability.
  2. Limited geographic presence: While Tech Mahindra has a presence in over 90 countries, its revenue is heavily concentrated in a few geographies, such as North America and Europe. This limited geographic presence makes the company vulnerable to any economic or geopolitical risks in these regions.
  3. Employee attrition: Tech Mahindra faces challenges related to employee attrition, which can impact its delivery capabilities and client relationships. The company has implemented several initiatives to address this issue, such as upskilling and reskilling programs, but it remains a critical area of concern.
  4. Intense competition: The IT services industry is highly competitive, and Tech Mahindra faces stiff competition from several large and established players both domestically and internationally. To remain competitive, the company needs to continue investing in emerging technologies and building strategic partnerships.
  5. Data privacy and security concerns: With the increasing use of digital technologies, data privacy and security have become critical issues for clients. Tech Mahindra needs to ensure that it has robust data privacy and security measures in place to address any concerns clients may have in this area.

In conclusion, while Tech Mahindra is a leading player in the IT services industry, there are some critical aspects that need to be addressed to ensure its long-term sustainability and growth. The company needs to focus on reducing its dependence on a few key clients, expanding its geographic presence, addressing employee attrition, remaining competitive, and ensuring robust data privacy and security measures.

Conclusion for Tech Mahindra Company –

In conclusion, Tech Mahindra is a leading multinational IT company that offers digital transformation, consulting, and business reengineering services to clients across various industries. With a strong focus on innovation, agility, and customer-centricity, Tech Mahindra has established itself as a trusted partner for digital transformation and IT services.

The company’s strategic acquisitions and partnerships have enabled it to expand its capabilities and market reach, while its agile delivery methodology has helped it respond quickly to changing client needs. Tech Mahindra’s commitment to delivering high-quality services and solutions has helped it establish long-term relationships with its clients and drive repeat business. As the demand for digital transformation continues to grow, Tech Mahindra is well-positioned to leverage emerging technologies and maintain its leadership position in the IT services industry.

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Last updated on August 9, 2023

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