Thursday, June 4, 2009

Tech Mahindra has got the Satyam equation all wrong

This is very apparent from the unconfirmed news of the latest round of job cuts at Satyam.
That some jobs are lost in any takeover or merger is expected. Especially if there are overlapping domains. I am not sure the overlap of domains justifies a job loss of the order of 10,000 (this is the number indicated to be on bench - obviously all will not go).

What concerns me more is the attitude of the new management. Management Guru, Peter Drucker, chanted, "Costs are inside, results are outside".

In vain, it seems.
Woes of Satyam will not end till they regain the confidence of the customers. Many have left. Others are deliberating. Getting rid of your most valuable asset (at least in the IT sector) - your people - is not the best way to impress customer.

Did Tech Mahindra bite more than it can chew and now shedding weight to cut losses?
Or was Tech Mahindra interested only in the few domains Satyam were strong in?
Either way they are making a mistake.
Such huge job losses will only lead to flight of other Satyam employees. And remember only those who are good get jobs. Satyam will lose good employees.

What should be done?
Well, I would ask my managers to take all the hands on bench and allocate them to existing projects depending on their existing skill. With these extra hands, I would ask the managers to give me gold-plated zero-defect output, ahead of schedule. This would give a clear signal to the existing customers that Satyam means business. That they will do whatever possible to regain customer trust. Customers should respond accordingly. This will also send loud signals to the employees - you are our main assets; please throw your weight with us. We will turn this damn thing around.

I believe non-technical staff will be first to go. Such as marketing people.
Come on! Do you mean to say, marketing chaps who have cultivated relationship with customers over the years are replaceable commodity?

If you are interested in my other posts on Satyam click on

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