Monday, April 13, 2009

Globalization and Tech Mahindra’s buyout of Satyam

The news is out: Tech Mahindra is the Highest Bidder for Satyam With INR17.56B Offer ($351 million)
This is an extremely big deal by Indian standards. The implication on globalization is obvious: the Indian hi-tech industry that is a backbone of India’s global footprint had taken a beating after the Satyam scandal. Hopefully with a renewed integration of the two companies, there will be a positive perception of the Indian tech industry. A few interesting points:

  • The 50K+/- Satyam employees will heave a sigh of relief.
  • Satyam clients across the globe are also going to heave a sigh of relief
  • Other tech companies including leading companies – Infosys, Wipro, TCS and others will benefit from a more stable corporate governance among competitors
  • Tech Mahindra is a global firm, owned partly by British Telecom (BT holds 39% of the equity)

Obviously: This is not the last word on this