tech mahindra services enterprise expected swot analysis

techsuch May 9, 2021 0 Comments

SWOT Analysis of Tech MahindraTech Mahindra Limited is an IT services and solutions provider and offerstechnology-based business solutions. The Mahindra group acquired SatyamComputer Services after the infamous Satyam Scandal in 2009-09. Tech Mahindrais headquartered in Pune, India and operates in the Americas, Europe, Asia,Middle East and Africa.## Strengths in the SWOT Analysis of Tech Mahindra :Diverse customer base: Tech Mahindra has strategically positioned itself totarget diversified end markets. Tech Mahindra offers IT services for variousindustries including telecom, banking, manufacturing and financial servicesetc. Providing services to such a wide customer base reduces business risks.Presence in diversified geographies: Tech Mahindra has strategically plannedits expansion globally in order to serve diverse geographies. Tech Mahindra’smarkets include developed markets such North America and Europe; and emergingmarkets such as Africa, Asia Pacific. Such a wide spread in terms of geographyalso reduces business risks and over dependence on concentrated markets.Broad and balanced service portfolio: Tech Mahindra has a broad and balancedservice portfolio. The spectrum of services that Tech Mahindra offers include:telecom and enterprise solutions, IT infrastructure services, Businessprocessing outsourcing (BPO) and enterprise services. With such a wide rangeof offerings, Tech Mahindra is able to attract a diverse base of customer.Strategic partnerships: Tech Mahindra has established a partner programthrough which are specifically designed to develop tools to support technologyproducts. It has partnered with companies like Google, IBM, Microsoft and SAPetc. Such an established network of partners provides the company with atechnological boost which helps it to provide more value to its customers.## Weaknesses in the SWOT Analysis of Tech Mahindra :Lack of Scale: Tech Mahindra competes with giants like Infosys, TCS andAccenture etc. As compared to the peers, Tech Mahindra has the lack of scale.INFY 2015, Tech Mahindra could only generate 1/3rd of the revenues generatedby TCS. This puts Tech Mahindra at a position of disadvantage.The majority of revenues are concentrated: The majority of Tech Mahindra’srevenues come from Europe and US which is a weakness since the company issusceptible to any economic or political changes that occur in these markets.## Opportunities in the SWOT Analysis of Tech Mahindra :Increasing demand for cloud-based solutions: The Global market for cloud-basedservices is expected to show strong growth in the years to come. Withimproving IT infrastructure in developed and emerging nations and advancementin technology, cloud-based services are expected to take grow at a CAGR of 19%till 2019. Tech Mahindra has established a market for cloud-based service andis expected to benefit from the increasing demand.Growing enterprise mobility market: With increasing mobile working populationand emergence of smartphones, business applications are expected to take overthe market for enterprise mobility. The global enterprise mobility solutionsmarket is expected to grow at a CAGR of 24.7% until the year 2021. TechMahindra offers a wide range of enterprise mobility solutions and hence isexpected to benefit from the growth in demand.Big Data: There has been a tremendous growth in Data in the recent years andbig Data has been the primary contributor of the same. Big Data basicallyhelps all organisations who want to turn the huge amount of data intoinsightful information. Tech Mahindra offers several services for Big Data andthus is well positioned to benefit.## Threats in the SWOT Analysis of Tech Mahindra :Intense Competition: Tech Mahindra is present in an ever evolving IT industrywhich is highly competitive. The company competes with large scale companieslike TCS, Infosys, Wipro, HCL and IBM etc. Intense competition leads topricing pressures and threatens to erode market share.A slowdown in IT spending: The IT industry has experienced the slowdown inspending globally which suggests that growth in the industry is sluggish andthere are uncertainties in the IT market.Employee attrition: The IT industry in India faces high attrition rate asthere are the high number of opportunities for people in the IT sector andemployees generally get attracted towards higher compensation. This increasesthe company’s overall expenditure on hiring and training.

Leave a Reply

Your email address will not be published.