Tech Mahindra Ltd. (TechM) is an information technology (IT) services and solutions firm headquartered in Pune, Maharashtra. This blog is about the in-depth swot analysis of Tech Mahindra.
This company offers the services, its outsourcing, implementation, and management of infrastructure-as-a-service, integrated technology solutions, BPO services, platforms, networks, services, and mobile value-added services. TechM offers next-generation solutions such as cloud computing, big data, content management, networking, digital, enterprise software, device testing and certification, and the Internet of Things (IoT).
The company offers services for a variety of industries, including banking, financial services, and insurance, communication services, energy and utilities, healthcare and life sciences, manufacturing, public sector, and government, hospitality, retail, and consumer packaged goods, sports, technology, high tech, media and entertainment, travel, transportation, hospitality and logistics, and oil and gas.
So, Before we dive into the In-depth SWOT Analysis of Tech Mahindra, let’s first get a brief idea about the company.
About Tech Mahindra
Tech Mahindra Limited is an information technology services and solutions company, which provides technology-based solutions. Mahindra group, to get the Satyam computer services for the infamous Satyam scandal by 2009-09. The Tech Mahindra has its headquarters in Pune, India, and operates in North America, Europe, Asia, Africa, the Middle East, and Africa.
SWOT Analysis of Tech Mahindra
SWOT analysis includes aspects like Strengths, weaknesses, opportunities, and threats. These aspects cover 2 internal factors that are strengths and weaknesses and 2 external factors that are opportunities and threats. These 4 aspects help a company analyze their situation in the market and helps them to improve
Let’s see each one in detail:
1. Strengths of Tech Mahindra:
Strengths are the aspects where a company is strong enough to compete with the competition and is performing well in those segments.
- Different customer domains: Tech Mahindra has put itself in its place with strategies to identify the various end markets. Tech Mahindra provides IT services to various industries including telecommunications, banking, manufacturing, and finance, etc.
- Diversity: Tech Mahindra has masterfully organized its global expansion program to accommodate a wide range of geographies. Tech Mahindra markets include developed markets such as North America and Europe; and emerging markets such as Africa, Asia Pacific. This geographical spread also reduces business risk and greater reliance on focused markets.
- Complete and balanced service portfolio: Tech Mahindra has a comprehensive and balanced service portfolio. The range of services offered by Tech Mahindra includes telecommunications and business solutions, IT infrastructure services, business outsourcing (BPO), and business services. With a variety of offerings, Tech Mahindra can attract a diverse customer base.
- Strategic Partnership: Tech Mahindra has established a partner program specifically designed to develop tools to support technology products. It has partnered with companies like Google, IBM, Microsoft, and SAP, etc. Such a partner network gives the company the technical impetus that helps it deliver more value to its customers.
2. Weaknesses of Tech Mahindra:
Weakness is the aspect where a company needs to improve and make sure it does not affect the company negatively.
- Lack of Average: Tech Mahindra competes with giants like Infosys, TCS, and Accenture, etc. Compared to its peers, Tech Mahindra has a lack of scale. INFY 2015, Tech Mahindra can only show 1/3 of the money earned by TCS. This puts Tech Mahindra in a dangerous position.
- Most of the revenue is fixed: Most of Tech Mahindra’s revenues come from Europe and America, weak as the company is affected by any economic or political changes that take place in these markets.
3. Opportunities of Tech Mahindra:
Opportunities are the aspects in which a company gets a chance to increase its profits and can they can use different opportunities to overcome its weaknesses and can improve on its strengths.
- Increasing demand for cloud-based solutions: The global market for cloud-based services is expected to show strong growth in the coming years. With the development of IT infrastructure in developing and emerging countries and technological advances, cloud services are expected to grow to a 19% CAGR by 2019. Tech Mahindra has established a cloud services market and is expected to benefit from the increase in demand.
- Expanding business mobility market: With the growing number of mobile operators and the emergence of Smartphones, business applications are expected to take over the business travel market. The global business solutions market is expected to grow at a CAGR of 24.7% by 2021. Tech Mahindra offers a variety of business travel solutions which is why it is expected to benefit from increasing demand.
- Big Data: There has been tremendous growth in Data over the years and Big Data has been the same big donor. Big data helps all organizations that want to convert big data into understandable data. Tech Mahindra provides many Big Data services and is therefore ready for profit.
4. Threats of Tech Mahindra:
Threats are the aspects from a company that needs to protect itself as it can negatively affect the company and can lead the company getting to loss.
- Competitive Competition: Tech Mahindra exists in the highly competitive IT industry. The company competes with major companies such as TCS, Infosys, Wipro, HCL and IBM, etc. Excessive competition leads to price pressures and threatens to end market share.
- IT Cost Reduction: The IT industry has experienced a sharp decline in global consumption which indicates that growth in the industry is slow and uncertain in the IT market.
- Recruitment: The IT industry in India faces a high level of employment as there are a high number of opportunities for IT professionals.
So to conclude, being an IT firm, Tech Mahindra needs to take in its grasp all the major opportunities that come its way. Though It is a diverse firm operating in different sectors with the full blow, there are still giant IT companies like Infosys and TCS that far exceeds Tech Mahindra in qualitative and innovative terms when it comes to providing premier IT services.
The IT Industry is proliferating at a rate like never before and innovations and updates are taking place as quick as a flash. In such a case, Tech Mahindra needs to use its strengths and opportunities to improve on weaknesses and overcome threats.
Hope you enjoyed reading this blog. To get insights into SWOT Analysis and Marketing mix of some of the giant brands around the world, visit IIDE’S knowledge portal.