13 Apr 2009, ET Bureau
HYDERABAD: Tech Mahindra, which emerged as a successful bidder to acquire a majority stake in Satyam Computer Services could gain around $800 million-$1 billion in annualized revenues from the acquisition, even as some customers consider shifting their projects to larger Indian vendors including TCS and Infosys.
“We estimate that over $300 million could be lost because of customer attrition over next six months,” said Sudin Apte, senior analyst, Forrester Research.
He added that Tech Mahindra will have to face the challenges of integrating teams from different service lines apart from convincing clients about business continuity.
According to sources who requested anonymity, Tech Mahindra offered Rs 58 per share for the Satyam bid, while engineering firm L&T made an offer of around Rs 49 for each Satyam share.
The Satyam acquisition will help Tech Mahindra diversify its software services business, and compete aggressively with bigger rivals such as TCS, IBM, Infosys and Wipro.
Satyam, which serves customers such as GE, GM and Ford, will also help Tech Mahindra build a better portfolio of customers.
Even as over 40 Satyam customers have either moved their projects, or are in the process of shifting to other vendors, leading companies such as GE, Nestle, Dupont, Nissan and National Bank of Australia continue to work with the scandal-hit company. The company has won around $30 million worth of contract from customers in Australia and Europe over past few days, a person familiar with these new wins said on conditions of anonymity
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