Tech Mahin­dra

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An­other com­pany that was in the news for all the wrong rea­sons was Tech Mahin­dra. While lay­offs has be­come a norm in the tech in­dus­try, but the man­ner in which HR de­part­ments con­duct these lay­offs has be­come a source of con­tention. For in­stance, a se­nior staffer at Tech Mahin­dra was served march­ing or­ders, and a ju­nior HR ex­ec­u­tive of the com­pany informs about the ter­mi­na­tion in curt lan­guage and gives him just 24 hours to move out - this shows an ab­so­lute lack of em­pa­thy and the in­hu­man way lay­offs be­ing con­ducted. Af­ter the au­dio tran­script of the lay­off process went vi­ral in so­cial me­dia, the com­pany’s top man­age­ment apol­o­gized and promised it will re­visit the ter­mi­na­tion pro­cesses.

Com­ing back to the per­for­mance of the com­pany dur­ing FY 17, the com­pany’s MD, C P Gur­nani while an­nounc­ing Q 4 FY 17 re­sults said that, “The in­dus­try is go­ing through a par­a­digm shift amid chang­ing de­mand pat­tern from the clients, tech­no­log­i­cal changes, and the re­quire­ment for sig­nif­i­cant skill en­hance­ment. We have re­sponded to those changes quite proac­tively by reimag­in­ing the busi­ness, im­bib­ing a cul­ture of in­no­va­tion en­cour­ag­ing reskilling and re­train­ing of our work­force wher­ever nec­es­sary.”

In the Q 4 earn­ings call, C P Gur­nani fur­ther stated, “As a sec­tor, on one hand, some of the chal­lenges are daunt­ing and clearly the op­por­tu­ni­ties are ex­cit­ing. So com­ing back to FY’17, some head­winds, some pos­i­tive move­ment, over­all a mixed bag of a quar­ter. En­ter­prise busi­ness grew 3.4%; Ser­vice Provider busi­ness has sta­bi­lized, that is show­ing growth.

The com­pany’s Prod­ucts busi­ness con­tin­ues to be lit­tle asym­met­ri­cal be­cause cer­tain quar­ters it does well and cer­tain quar­ters the re­sponse is not all that great. Re­flect­ing on that Gur­nani said, “We ob­vi­ously need to add a few more prod­ucts to bring lit­tle more sta­bil­ity into that busi­ness but in this quar­ter ( Q4) if there was a drag I would say that was planned drag be­cause of Net­work Ser­vices and a few sur­prises on the Prod­ucts busi­ness. But over­all as a year, BFSI, Man­u­fac­tur­ing, and Re­tail did ex­cep­tion­ally well; BFSI grew 36% con­stant cur­rency, Man­u­fac­tur­ing grew 20% in con­stant cur­rency, Re­tail grew about 18% in con­stant cur­rency and over­all the En­ter­prise busi­ness al­most grew 12% in con­stant cur­rency, clearly ahead of the in­dus­try. Over­all, when I look at both the com­mu­ni­ca­tion pipe­line and the En­ter­prise Ser­vices pipe­line, I think it is a bet­ter pipe­line than what I had around the same time last year.”

Gur­nani also in­di­cated about some of the chal­lenges. He said, ‘I can only prom­ise you that as a man­age­ment team I am con­scious that I need to get some of the chal­leng­ing parts of the busi­ness out of the way and we also need to im­prove some of our op­er­at­ing mar­gins. Those two are clearly our fo­cus ar­eas. The third fo­cus area for us is re- skilling.

—CP GUR­NANI MD & CEO

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