By Nick Heath, 15 April 2009 08:26
NEWS
...putting in place other routes of supply, talk to competition and arrange for fall back scenarios if the absorption of Satyam gets too distracting for either Satyam or Tech Mahindra," he said.
While BT may be facing disruption from the merger, the benefits are clear for Tech Mahindra: EquaTerra's Morris said that the deal frees Tech Mahindra from its reliance on BT, expands its expertise from networking into wider IT outsourcing and to serving companies across a range of sectors.
"The value of Satyam comes with the clients and the potential expansion of that client base. I would say that Satyam remains a fantastic asset for anyone that manages to leverage it properly," he said.
A spokesman for BT said: "BT has always supported Tech Mahindra in its bid to acquire Satyam and we continue to remain a shareholder." A spokesman for Tech Mahindra was unavailable for comment.
Satyam has been looking for a buyer since March, following the arrest earlier this year of its founder and former chairman B Ramalinga Raju after he admitted the company's books had been inflated by nearly $1bn.
The deal will provide some comfort to Satyam's existing customers, according to Patrick O'Brien, senior analyst for outsourcing with analyst house Datamonitor.
"There will be relief among customers looking to move the situation on but Tech Mahindra still have a big effort to convince clients they will be able to steady the ship."
"Tech Mahindra has a lot of work in the UK, they are obviously going to be looking at the potential of Satyam's assets, I imagine they would be wanting to cross over into more IT services rather than networking that Tech Mahindra specialises in."
Chairman of Satyam's board, Kiran Karnik, said in a statement: "On behalf of all Satyamites and their families, we congratulate Tech Mahindra on being the highest bidder."
"This event ought to dispel the anxiety of all stakeholders as it re-positions the company's commitment to revival and good governance," he added.
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1. anonymous
Maybe BT should bring some jobs back on-shore in the UK and put some 'British' back into British Telecom ?
The BT UK support centre in Newcastle runs rings round them.