Two more acts to unfold

While the dust is still settling on the Tech Mahindra acquisition of Satyam, there is a definite recognition in the industry and all the stakeholders of the two companies that only the second act has been played out in the Satyam saga. There are probably two more acts still to unfold before the ship sails smoothly again.

The new owner will be given a few months to steady the ship and keep all stakeholders convinced that no further shocks lie ahead.

The navigation of unknown dangers like the Class Action law suits in the US and the legal action in Europe should not divert attention from the primary task of stabilising the company and integrating it well into the new owner group. The next act should see three key actions taken by the Tech Mahindra members of the Board.

* To ensure that current chairman Kiran Karnik is retained in an active role and his help sought in reaching out to customers and analyst groups in conjunction with the designated nominee of Tech Mahindra.

* To reassure performing members of the top and next layers of management that their jobs are secure and provide them with clear key results areas for the new financial year.

* To create a separate subgroup from the parent group that would work at resolving the law suits and the ongoing investigation into the shenanigans of the Rajus and steady the financial ship. Necessary actions here would be reduction of the cost structure by bench rationalisation and elimination of duplicate resources and some blood letting is inevitable.

It is ideal that this act should be played out in the next 30 to 50 days following which the larger charter of integration can follow. At the same time, the biggest challenge for an acquirer with dependence on a few large clients would be to build the account management width to deal with the multiple engagements of Satyam. The key to this would be the appointment of experienced leaders in the key markets of USA and Europe who would reach out to every client manager and prospect and set in place the farming and hunting processes that are so critical in a difficult year.

At a time when all companies are looking eastward for shoring up their revenue bases, the good news is that Tech Mahindra has already made significant inroads into Asia. Satyam too has a strong presence in many of the Asia Pac and Middle East countries.

For most of us who have seen the unknowns that any acquisition holds?financial, technical, managerial and cultural integration being just a few, the pressure points that will face this landmark deal are predictable. The integration team will have to be staffed with the right mix of technical, business and financial experts who have the sagacity and experience to burn the midnight oil and tackle all lurking problems head on.

Tech Mahindra faces a tough challenge and will need many firm hands at the wheel to guide the ship through the storm. The green shoots of economic recovery that are visible today could provide a quantum of solace as the markets blossom again but there can be no complacency at all with ?promises to keep and miles to go before they sleep.?

For the entire industry too, while the speedy resolution of the immediate problem have led to collective sigh of relief, there is a lot to be done to stay at the watch till the ship sails into safe harbour.

We must also ensure that the fraud that was perpetrated in the Satyam theatre does not have an opportunity to be played out on any other stage in the future. The world is recovering its confidence in India Inc today but we in the Indian IT sector cannot afford to blink!

?The writer is vice-chairman & CEO of Zensar Technologies Ltd and a member of the Chairman?s Council of Nasscom