Tech Mahindra sees the proposed discern of Vodafone and Idea as a “seismic” event that will affect the IT sector, but declare that it will benefit from such a deal. The software firm derives over half of its revenue from servicing communication companies.
Tech Mahindra MD and CEO CP Gurnani told that ‘’It is a big market where these people are merging together. In my world, it is a seismic change. It is not an ordinary change. Clearly, it means that certain part of the IT spend will either come down or get re-directed.’’
He also said that rather than being affected, Tech Mahindra may benefit from such a merger. “The reason it may not have any impact on us, as a matter of fact, it will get better for us, because of both the companies our primary focus is on customer service management.”
Vodafone and Idea Cellular, the second and third biggest telcos in the country, have confirmed last month that they are in talks to create a telecom giant which will take on Reliance Jio, the aggressive new entrant flush with cash, and the entrenched leader Bharati Airtel.
An all stock manager is in the works to create an entity which will command 40 percent of the revenue market share and boost of over 380 million subscribers, according to Indian Ratings.
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