Tech Mahindra plans to create a federated structure for its two merged entities — Tech Mahindra and Mahindra Satyam — much along the lines of the parent Mahindra group, most of which would be completed by December this year.
The outsourcer has also chalked out a strategy that would help in positioning it among the top three IT companies in the country by 2021.
Tech Mahindra plans to double its revenues to $5 billion by 2015, from the present $2.5 billion, by further growing revenues from products platforms and services, Tech Mahindra Head Mobility Business Jagdish Mitra, said on the sidelines of the Nasscom Summit.
These include earnings from Intellectual Property (IP) assets, which would contribute to about 10 per cent of the total revenues in the next five years.
“We are aiming to be among the top three leaders in each of the chosen market segments,” he said.
The group is also restructuring its management cadre into smaller divisions that will have separate Profit and Loss (P&L) accounts. This, the company expects, would drive innovation and increase speed of delivering outsourcing related services. It would also have about 100 ‘mini-CEOs’ who would take decisions and run various divisions, which are “companies by themselves,” while about 30-40 mini-CEOs have already been given the responsibilities.
Further, the merged entity will focus on verticals such as telecom, manufacturing, healthcare and BFSI, while it will venture into newer areas and geographies to be agile.
Earlier, companies such as Mindtree and Geometric had embarked on similar structures to make them more efficient and reduce time take for decision making.
“A large amount of the exercise will be completed by December. One part of the story is about being successful,” said Mitra.
The company expects most of these restructuring processes to be completed by December this year.
The merger of the companies — Mahindra Satyam and Tech Mahindra — is still awaiting regulatory approvals. In the third quarter ended December 31, 2012, Tech Mahindra’s revenues rose 7.9 per cent to $329 million from a year ago period