Tech Mahindra Limited is an IT services and solutions provider and offers technology-based business solutions. The Mahindra group acquired Satyam Computer Services after the infamous Satyam Scandal in 2009-09. Tech Mahindra is headquartered in Pune, India and operates in the Americas, Europe, Asia, Middle East and Africa.
Strengths in the SWOT Analysis of Tech Mahindra :
Diverse customer base: Tech Mahindra has strategically positioned itself to target diversified end markets. Tech Mahindra offers IT services for various industries including telecom, banking, manufacturing and financial services etc. Providing services to such a wide customer base reduces business risks.
Presence in diversified geographies: Tech Mahindra has strategically planned its expansion globally in order to serve diverse geographies. Tech Mahindra’s markets include developed markets such North America and Europe; and emerging markets such as Africa, Asia Pacific. Such a wide spread in terms of geography also reduces business risks and over dependence on concentrated markets.
Broad and balanced service portfolio: Tech Mahindra has a broad and balanced service portfolio. The spectrum of services that Tech Mahindra offers include: telecom and enterprise solutions, IT infrastructure services, Business processing outsourcing (BPO) and enterprise services. With such a wide range of offerings, Tech Mahindra is able to attract a diverse base of customer.
Strategic partnerships: Tech Mahindra has established a partner program through which are specifically designed to develop tools to support technology products. It has partnered with companies like Google, IBM, Microsoft and SAP etc. Such an established network of partners provides the company with a technological boost which helps it to provide more value to its customers.
Weaknesses in the SWOT Analysis of Tech Mahindra :
Lack of Scale: Tech Mahindra competes with giants like Infosys, TCS and Accenture etc. As compared to the peers, Tech Mahindra has the lack of scale. INFY 2015, Tech Mahindra could only generate 1/3rd of the revenues generated by TCS. This puts Tech Mahindra at a position of disadvantage.
The majority of revenues are concentrated: The majority of Tech Mahindra’s revenues come from Europe and US which is a weakness since the company is susceptible to any economic or political changes that occur in these markets.
Opportunities in the SWOT Analysis of Tech Mahindra :
Increasing demand for cloud-based solutions: The Global market for cloud-based services is expected to show strong growth in the years to come. With improving IT infrastructure in developed and emerging nations and advancement in technology, cloud-based services are expected to take grow at a CAGR of 19% till 2019. Tech Mahindra has established a market for cloud-based service and is expected to benefit from the increasing demand.
Growing enterprise mobility market: With increasing mobile working population and emergence of smartphones, business applications are expected to take over the market for enterprise mobility. The global enterprise mobility solutions market is expected to grow at a CAGR of 24.7% until the year 2021. Tech Mahindra offers a wide range of enterprise mobility solutions and hence is expected to benefit from the growth in demand.
Big Data: There has been a tremendous growth in Data in the recent years and big Data has been the primary contributor of the same. Big Data basically helps all organisations who want to turn the huge amount of data into insightful information. Tech Mahindra offers several services for Big Data and thus is well positioned to benefit.
Threats in the SWOT Analysis of Tech Mahindra :
Intense Competition: Tech Mahindra is present in an ever evolving IT industry which is highly competitive. The company competes with large scale companies like TCS, Infosys, Wipro, HCL and IBM etc. Intense competition leads to pricing pressures and threatens to erode market share.
A slowdown in IT spending: The IT industry has experienced the slowdown in spending globally which suggests that growth in the industry is sluggish and there are uncertainties in the IT market.
Employee attrition: The IT industry in India faces high attrition rate as there are the high number of opportunities for people in the IT sector and employees generally get attracted towards higher compensation. This increases the company’s overall expenditure on hiring and training.