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Triggered by subprime mortgage crisis, US Financial Crisis (2008)

resulted in engulfing world economy with sudden downfall in all the

major economic indicators leading to unprecedented layoffs. Amidst

these layoffs, Satyam Computer Services Ltd. was hit by an internal

financial scam, aggravating its situation more than any other Indian IT

company. As the future of the company hung in a dilemma, Tech

Mahindra bought a controlling stake in the organisation and declared

that it had to solve the problem of surplus workforce at Satyam which

ranged between

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7,000-10,000 associates. Amidstspeculations of massive job losses, thecompany announced an innovative scheme

the Virtual Pool Program (VPP) toaddress the issue of surplus workforcewhile at the same time retaining talent.However, can VPP be called as an effective

talent management strategy amidstdownturn? VPP has also been called as anindirect way of laying-off people.

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Mahindra Satyam (Former name: SatyamComputer Services) is a Hyderabad-headquartered Global IT Services company.Tech Mahindra has a controlling stake in the

company. On February 5, 2009, A S Murthy isnamed the CEO of Satyam. Chander PrakashGurnani is the current CEO.

Vineet Nayyar is the Chairman / Chair Personof the company. C Achuthan, T N Manoharan,

Deepak Parekh, Tarun Das, S Balakrishanan areDirectors. C P Gurnani and Ulhas N Yargop areNominee Directors. M Damodaran and GautamS Kaji are Additional Directors

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This innovative program is applicable tothose based in India and allows associates totake time-off from work on a reduced pay

structure for up to six months while theycontinue to retain their employment withthe company. The company anticipates thatapprox 7,000 to 10,000 associates will be

part of this program during the period that itis in operation.

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One time exercise

Reduce pay

Recalls

Personal aspiration

Out placement support

Online learning

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Un support by employees.

High profit gain.

Talent management.

Develope performance.

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- TM has traditionally been in the telecomvertical and is perceived as a "verticalindustry" player.

Missing out on the broad "general business"areas of Retail, distribution,manufacturing, services etc.

Satyam supposedly has a fairly strong

"fixed price" model. Satyam's reach in both the middle east and

AUS/NZ markets.

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Management /Thought leadership :

Especially in the areas of Packaged

applications (SAP, Oracle, MS Dynamics),

Custom development (non-product) andmanaged services

Culture : Not sure how they'd be able to

reconcile the bottom load model of Satyam

at cheaper rates to the vertical strengthmodel that TM has

Parity : This just has to do with employee

status and relationship management ?

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The biggest opportunity for TM would be the

opening of the horizontal "multinational"

enterprise.

Ranging from Travel industry to retail topharma/healthcare.

The opening of the COTS (read as ERP/ CRM)

market.

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Client / customer and account retention (and

this one needs no elaboration).

Cost advantage ? (esp. given that most of the

contracts that Satyam needs to deliver on.Would be on a very aggressive P&L) and the

market perception / environment.

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