Mahindra Satyam to reorganize; mini CEOs to take charge of small business units

MUMBAI: To be able to effectively tap opportunities presented by the changing technology outsourcing market, Mahindra Satyam will undertake organizational restructuring by creating mini business units headed by mini CEOs as the software services company works towards its 2015 sales target of $5billion (Rs 27,000 crore).

“We will have some 30 mini chief executives in charge of small business units that are sharply focused on opportunities within different verticals such as manufacturing, healthcare, banking and financial services,” said CP Gurnani, chief executive officer.

Once the merger with Tech Mahindra is complete, Mahindra Satyam will have combined revenues of around $2.4billion with some 85,000 employees. Mahindra Group acquired the Hyderabad-based company in 2009 through a government-mediated auction in the aftermath of its founder Ramalinga Raju admitting to a corporate accounting fraud in excess of $1billion.

The increasing adoption of emerging technologies such as cloud computing, mobility and data analytics by corporations, is throwing up business possibilities of the nature that the traditional organizational structure may not be able to capture completely, according to Jagdish Mitra, who heads Satyam’s mobility business.

The so-called mini-CEOs would be empowered executives who would take ownership of the sub-business units including revenue and profit responsibilities. The reorganisation will help the company to be more agile and quick to react to customer needs and create opportunities that otherwise may be missed, Mitra added.

Mahindra Satyam-Tech Mahindra merger is pending in Andhra Pradesh high court.