M&M rejigs IT biz to cut cost
The $6.7-bn Mahindra group is reorganising its IT services businesses. It will re-integrate its ERP division, Mahindra Consulting, into its Silicon Valley-based wholly-owned supply-chain subsidiary Bristlecone.
By Atmadip Ray, ET Bureau |
KOLKATA: The $6.7-bn Mahindra group is reorganising its IT services businesses. It will re-integrate its ERP division, Mahindra Consulting, into its Silicon Valley-based wholly-owned supply-chain subsidiary Bristlecone. The mission is to reduce costs by beefing up business synergy and scale of operation.
Besides combining the ERP and supply chain management (SCM) businesses, the Mahindra group has decided to recast Bristlecone���s top deck. As a prelude to the exercise, several mid-level managers in the erstwhile Mahindra Consulting division are learnt to have quit.
In a written response to ET���s email query, Mahindra & Mahindra���s spokeswoman said: ���The resources of the ERP and SCM divisions have been combined to provide our clients with a one-point solution for their entire SAP- ERP/SCM requirements as preferred by our clients. This will lead to synergy and cost reduction.���
She, however, declined to respond to ET���s specific query on the exodus at Mahindra Consulting. Interestingly, Mahindra Consulting was born a couple of years ago as a separate division of Bristlecone to focus specifically on the ERP solutions. The Mahindra group declined to disclose the precise size of its ERP business.
However, according to a company official close to the development, what possibly might have induced M&M to combine the two businesses once again is the fact that customers in India, unlike in North America or Europe, look for a single service provider that can support them on combined ERP and SCM business solutions.
It is learnt that M&M has also decided to widen the responsibilities of key Bristlecone officials like Satish Moorjani, Prashant Karkhanis and Sameer Tamhane. Mr Moorjani, vice-president (consulting services-Asia-Pacific) has now been re-designated vice president & general manager for the region.
Besides combining the ERP and supply chain management (SCM) businesses, the Mahindra group has decided to recast Bristlecone���s top deck. As a prelude to the exercise, several mid-level managers in the erstwhile Mahindra Consulting division are learnt to have quit.
In a written response to ET���s email query, Mahindra & Mahindra���s spokeswoman said: ���The resources of the ERP and SCM divisions have been combined to provide our clients with a one-point solution for their entire SAP- ERP/SCM requirements as preferred by our clients. This will lead to synergy and cost reduction.���
She, however, declined to respond to ET���s specific query on the exodus at Mahindra Consulting. Interestingly, Mahindra Consulting was born a couple of years ago as a separate division of Bristlecone to focus specifically on the ERP solutions. The Mahindra group declined to disclose the precise size of its ERP business.
However, according to a company official close to the development, what possibly might have induced M&M to combine the two businesses once again is the fact that customers in India, unlike in North America or Europe, look for a single service provider that can support them on combined ERP and SCM business solutions.
It is learnt that M&M has also decided to widen the responsibilities of key Bristlecone officials like Satish Moorjani, Prashant Karkhanis and Sameer Tamhane. Mr Moorjani, vice-president (consulting services-Asia-Pacific) has now been re-designated vice president & general manager for the region.
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