Tech Mahindra Is Growing Well

Tech Mahindra is the telecom and IT services wing of the powerhouse Mahindra and Mahindra group. A lesser known franchise of the Mahindra group which has been making slow but very steady and significant strides in the field of Telecom and IT Services

In 3 years time Tech Mahindra have managed to triple their fiscal revenue From Two Hundred And Eighty Point One Million Dollars to an amazing 934.7 million dollars.

The breakout year for Tech Mahindra was very much the 2006-07 year when the Indian economy was booming and foreign IT companies wanted to invest in finding low cost solutions. This was the time when Tech Mahindra managed to attract a huge list of foreign clients with the impressive Mahindra brand credentials behind them.

But what is an even more important indicator of the company’s growth is the fact that during the previous fiscal year of 2007-08 when the Indian IT sector has been treading carefully; they have managed to add many more clients and increase their revenue by at least about 300 million dollars.

The fact does indeed remain that the rates of growth in most companies have been dwindling since the recessionary bout in the US began, even Tech Mahindra are not an exception. The critical aspect for them like most Indian IT firms is the fact that businesses flowed in the first half of the year when the economic state was much better as compared to the second half.

Share holders of the company have also benefited heavily from the expansion of Tech Mahindra with their board declaring a 55% dividend.

The key feature of Tech Mahindra has been an anti-climax of sorts. They are a company that have managed to make crucial in roads eating up clients based on the fact that they pursue an aggressive client relationship.Tech Mahindra have followed a motto of ‘Connect Now’ that is devoted to building relationships rather than being known for providing better services, though the latter is also something the company is extremely good at.

Like most Indian IT companies, Tech Mahindra has a core infrastructure model of providing innovative cost cutting yet quality measures. This approach has led the company to consolidating a rather precarious position in the beginning to a dominant one in providing offshore applications.Tech Mahindra has a portfolio of providing technology,operational,applications and undertaking Business Process Outsourcing for foreign companies in addition to engaging the same for Indian companies as well.

An interesting facet of Tech Mahindra is the fact that they dominate the European markets which also account for nearly 70% of their revenue as compared to a company like Infosys whose activities are better known in North America .The immediate roadmap for the future is to gradually increase their presence in North America as well.

Tech Mahindra’s revenues have also been pumped by their telecom services. Not only are they service providers but also equipment makers and software developers. Even in this field which is expected to grow at a rapid pace Tech Mahindra aims to be able to capture a significant chunk of the Fast growing mobile services market.

With such a fast rate of Growth, Tech Mahindra should definitely be very happy.