In an exclusive e-mail interview, Rohit Gandhi, senior vice-president (Asia-Pacific, India, Middle East & Africa) of Mahindra Satyam, talks about his company’s big foray into China.
Mahindra Satyam is trebling staff strength in China. Why China, especially when there is the risk of the country further slowing down in terms of economic growth? Are other Indian IT companies playing the China game as aggressively as Mahindra Satyam?
Even if China's GDP growth is 7.5 percent from the current base, it is still huge, and we see good opportunities for global IT companies like Mahindra Satyam/Tech Mahindra. Our global customers want to de-risk their approach and are asking for India + 1 strategy (i.e. one other gographical centre other than India), as the delivery model. The availability of a skilled and English-speaking workforce in China, and its position as the hub of manufacturing and engineering services, makes it ideal for us to make substantial investments there.
At the same time, we see domestic Chinese companies also keen to explore our expertise in areas of Engineering services, especially in the Auto and Manufacturing sectors, and our IT and BPO services for Pharma, Health/Life Sciences, Telecom and the BFSI sectors. Our global leadership in these areas enables us to bring in these services and complement the Chinese expertise in manufacturing.
In a recent announcement, the company said it will be focusing on engineering, manufacturing and telecom sectors in China. Why the focus on these three sectors only?
Mahindra Satyam and Tech Mahindra are focusing on the Telecom, Manufacturing, Health and Life Sciences sectors in China. Our proven service offerings like Engineering (design, build and testing services), Enterprise Business services (Data warehousing, Business Intelligence, Analytics), System Integration Services and BPO have already found their respective niches with many clients in China and we believe that demand for these services will grow manifold.
From the Telecom perspective, there is a huge domestic market to cater to, for the telecom service providers and telecom equipment manufacturers. Tech Mahindra is a specialist Global Telecom services provider; our experience in providing transformational services to companies such as British Telecom positions us strongly in this sector, to help Chinese telcos unify front-end and back-end systems such as advanced CRM, billing and account servicing. The Mobile Value Added services (VAS) revenues form a large part of carrier revenues globally, which are expected to grow significantly. Tech Mahindra being a leader in this segment is well positioned to address this in the Chinese market.
In the areas of manufacturing and engineering, the challenge for Chinese companies is in innovation, and in moving faster up the technology ladder. Mahindra Satyam is a strong player in this space and has built in capability at our China centres, to take advantage of this opportunity. In sectors where China has world leadership, especially Auto and Auto parts and Electronics, we are seeing large demand for outsourcing services like engineering testing services and for services, in the areas of design and build, especially around Mechanical Engineering and Hi Tech industries.
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