Having come close to the end of a three-year recovery, Vineet Nayyar, chairman of Mahindra Satyam, seems to be satisfied with the health of the company now.?In an interview with BV Mahalakshmi, he said that despite the current headwinds in the industry, the company is expecting sweeping changes in pricing. Excerpts:
How was the Davos experience for Mahindra Satyam?
It was an enriching experience to be a strategic partner at The World Economic Forum Annual meeting.?One of the key feedback I came back with is the importance of sustainability. I foresee sustainability as competitive force. Environmental sustainability has been on the radar of many businesses for decades, but it is finally beginning to take hold as a competitive strategy. Building a strategy into the rhythm of business will determine the difference between the winners and losers. Companies that develop products and services that address global challenges, such as energy supply and access, climate change, pressure on ecosystems or water, will be around for long haul.
How is the pricing pressure viewed?
The global economy is yet to stabilise and market conditions remain unpredictable with the deepening of the euro crisis. While, businesses have been affected by slower growth and rising inflation, Mahindra Satyam has been successful in maintaining its growth momentum. Right now, there have been no drastic decisions with regards to our customers with most of our clients doing business as usual with Mahindra Satyam and with no sweeping changes in pricing. I see scope for smarter delivery and frugal innovation in case of trying times. As far as impact on business is concerned, it is a wait and watch situation.
How has been the salary hikes in the company?
Our salary hike has been as per the industry standards and a good salary hike along strong associate connect has helped us keep our attrition rates stable.
How do you look at the attrition rate in the current quarter vis-a-vis the industry rate?
Our total headcount stood at 32,280 as on December 31, 2011, a net addition of 188 QoQ. Our attrition has been stable at 16% in Q3 versus ? 25% in last year (Q3FY10). A further reduction in attrition level continues to hold our primary focus and will continue to remain so. This statement is a reflection that we are at par with the industry standards and in the coming days it will only get better.