Case study
Mahindra Infotech Ltd. took over the Satyam Infotech Ltd. in 2008
which was leading IT company of its era. The Satyam Infotech was a
victim of 2G scam and suddenly stopped all the ITES functions on
immediate basis. The Vidharbha Housing Development Finance Co-
operative (VHDFC) Bank had purchased the IT services from Satyam
Infotech in 2006. VHDFC had saving bank account deposit amount
was more than 650 Cr. for the year 2008. It was difficult to stop the
customer services for VHDFC bank. Since, VHDFC atomized their
entire data base with Satyam Infotech and the online portal crashed
all of a sudden and due to which the internal bank system entirely
collapsed. How to recover the process was the big question infront of
VHDFC Bank. Analyze the situation and enlist the creative digital
Ideas to recover the problem in context of biggest recession period
in IT sector in India.
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Answers
Answer:
Set in 2008, the case details Tech Mahindra, an information technology (IT) company within the Mahindra Group, an Indian multi-industry company with a diverse stable of businesses including automotives, farm equipment, and financial services, and its decision to acquire controlling stake in Satyam Computer Services Ltd. (Satyam), a troubled Indian IT company managed since January 2009 by a six-member government-appointed caretaker board. Anand Mahindra, Chairman and Managing Director of the Mahindra Group, saw the acquisition of Satyam as a strategic opportunity to move to the next level of growth. The acquisition would allow the Group to diversify across verticals, customers, and geographies, market a wide range of services to Satyam's strong customer base, and capitalize on common support systems in order to reduce operating costs and secure operational synergies. His brief to Vineet Nayyar—the vice chairman and managing director of Tech Mahindra and the vice chairman of Satyam—and C.P Gurnani—the CEO of Mahindra Satyam—was based on a set of clear principles: rectify the issues related to corporate governance; ensure an environment of trust where ethical conduct was valued; manage reputation risks by meeting customers and demonstrating the Mahindra Group's commitment; and restore faith within customers through newfound business models of delivery and engagements. As Nayyar reflected on Anand Mahindra's words, he wondered what series of business decisions he would have to make in order to retain the good elements, throw out the bad pieces, regain trust, and trigger change within the newly anointed Mahindra Satyam.
Explanation:
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