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Tech Mahindra woos Telstra

Paul Smith (via AFR) | Aug. 13, 2013
Indian outsourcing giant Tech Mahindra has kicked off a week-long Australian charm offensive, with a target of winning new business from Telstra firmly in its sights.

Tech Mahindra woos Telstra
Ted Pretty said the relationship between Tech Mahindra and Telstra has been "reignited".  Photo: David Mariuz

Indian outsourcing giant Tech Mahindra has kicked off a week-long Australian charm offensive, with a target of winning new business from Telstra firmly in its sights.

The program of local client meetings and briefings began on Monday with a day-long analyst briefing in Sydney, as the $US2.7 billion ($2.95 billion) revenue company attempts to reposition itself after the completion of its merger with Satyam.

Non executive chairman of its Australia and New Zealand operations, Ted Pretty, a former group managing director at Telstra, said the door to winning business with Australia's largest telco had been re-opened now the company had sorted out its internal changes.

He said that during his time at Telstra, Satyam had been a trusted supplier to then chief information officer Jeff Smith, who is now CEO of Suncorp Business Services.

"Tech Mahindra already had big customer relationships in the Australian market, including customers like Vodafone, but now it has been able to recapture the interests of people like Telstra," Mr Pretty said.

"The relationship with Telstra has been reignited . . . We can't go into the detail, because some of it is sensitive about different projects they have under way that are competitive in nature, but certainly we are seeing an ability of the combined company to be able penetrate clients such as Telstra on a broad array of service offerings."

The merger of Tech Mahindra and Satyam occured after Satyam became embroiled in scandal when its founder Ramalinga Raju admitted to having falsified company accounts for several years to the tune of $1.45 billion in fictitious assets.

Tech Mahindra stepped in to take control of a merged company, which has since made strides in putting the negative stories in the past. It is now in a position where it wants to expand its Australian presence, and hired Mr Pretty to advise on local business development.

"I think, because the merger is out of the way, there is great expectation that Tech Mahindra will now significantly seek to expand its operations in the Australian market," Mr Pretty said.

"That means to have a significantly stronger domestic base by acquisition, and the second one is to grow organically in Australia, with a strong mix of onshoring as well as offshoring activities."

Last week The Australian Financial Review reported that fund manager ­Perpetual is poised to outsource parts of its back office operations to Tech ­Mahindra.

This could lead to speculation about the nature of any work won with Telstra, in the light of the telco's plans to cut internal roles as part of a restructuring of its operations division.

 

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