Apr 16, 2009

HR challenges for Tech Mahindra - Satyam

So the uncertainty about my ex-employer has ended. Thankfully Satyam has not gone the Enron and Lehman way to implosion but in 100 days has been acquired by a smaller niche player Tech Mahindra.

Here are the big issues that I see for the merged entity:

  1. There are reportedly 12000 -13000 people on the bench in Satyam. While the government controlled board was there they had some job security. However once the acquisition process is complete how will TM decide on their future.
  2. Support groups. Tech Mahindra has internal support groups for HR, IT, Marketing, Finance - however it would need to keep a large part of Satyam's team also - because of the diversity of Satyam's business. However there would be some redundancies.
  3. Top management. I feel that the group that could see a major churn is the top management - perceived to be close to the former Chairman.
  4. Headquarters. The location of the headquarters plays a major part in the identity of the organization. Satyam was always a Hyderabadi origin company - how will it's image change if the headquarters are moved to Mumbai.
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