Months after ‘The Indian Enron’ scandal threatened the sub-continent’s outsourcing industry, the new Satyam is beginning to reassert itself once more – in the public sector as much as the private sector.
“We’ve all read about the great IT disasters in the public sector, so there’s certainly room for improvement there,” says Roger Newman, head of UK manufacturing and digital convergence relationship management at Mahindra Satyam. “I think a change in administration would give people the jolt or confidence to move forward and try some different things.”
Newman is talking to PublicTechnology.net about the resurgence of Satyam and a potential future role in the UK’s public sector. It’s been a difficult period for the company following a scandal at the start of 2009 described by some as ‘The Indian Enron’. In January, then chairman and CEO Ramalinga Raju confessed to falsifying Satyam’s books. The Indian government subsequently nominated new members to the board, and managed the auctioning and acquisition of Satyam by Tech Mahindra.
Seven months on from Tech Mahindra’s deal and five months on since Satyam’s rebranding as Mahindra Satyam, Newman reveals, “The cultures [between the companies] are nicely moulding together now.” He adds the current strategy is to take a softly, softly approach to integration, with a view to wholly merge the operation sometime in the future.
The conversation turns to 2010, which is already looking promising for Mahindra Satyam. Newman reveals the company has a “reasonable pipeline going into the New Year”, with a “steady stream of customers” both large and small. The wary tone continues, as Newman confirms next year will see the beginnings of recovery, and that, “We don’t expect it to get any slower in outsourcing.”
Looking ahead to the next twelve months inevitably brings up the subject of the UK General Election. Newman explains how a potential change in administration at Westminster could help produce innovation in IT services and project: “Right now, people don’t want to change too much; they’re a little stuck in their ways. I think a change in administration would give a bit of a kick start to new thinking this area – and I think new thinking is critical.”
He adds: “I don’t think the government can continue to waste money as they have done, and I think they can learn from some of the other players in the field.”
The need to introduce efficiencies in government may provide new opportunities for BPO companies like Mahindra Satyam, something Newman would be happy to see – for the benefit of the UK’s public sector as much as his company: “[Currently] the public sector is a difficult area to sell in. They have certain processes, a certain culture and attitude, so it’s hard for companies like us to make the break there. But we have something got to offer; the general perception is changing about companies like ourselves with a global delivery model.”
“A few years ago it was ‘What can these guys really bring? The same thing cheaper…perhaps.’ I think that perception has changed because of the impact we’ve had in the private sector, and I don’t think the public sector can choose to ignore it for much longer.” You should at least it in your portfolio and in your thinking.”
Source:http://www.publictechnology.net/modules.php?op=modload&name=News&file=article&sid=22005
