Key Findings & Highlights:

Tech Mahindra was founded in 1986 and is headquartered in Mumbai, India. A major shareholder is Mahindra Group (with ~26.3% of shares).

In June 2013, Tech Mahindra (TM) announced the finalization of its merger with Mahindra Satyam (MS); the merged entity is now called Tech Mahindra. Tech Mahindra and Mahindra Satyam had a largely complementary client base in terms of geographical and vertical presence; Tech Mahindra had targeted telecom service providers with an IT and BPS services portfolio and investments in network, security and business process, and Mahindra Satyam had focused on a wide range of enterprise clients, including telecom with primary focus in consulting, engineering and analytics.

In June 2016, it expanded its customer and employee experience and interface (UX-UI) design and consulting capabilities with the acquisition of The BIO Agency (BIO) for £22.5m plus earnouts over three years. London-based BIO, initially founded in 2006, generated £12.5m revenues in its FY16 (to the end of April 30, 2016), a growth of ~70% from £7.3m in FY15.

Since the acquisition, BIO has become the core of Tech Mahindra's experience consulting and implementation capabilities and is in the process of training all legacy Tech Mahindra, experience-focused employees on BIO processes and tools. As of mid-2018, it estimates ~75% of all Tech Mahindra experience-skilled employees use BIO methods and approaches.

Tech Mahindra's total revenues for CY 2017 were ~$4.7bn. NelsonHall estimates that digital transformation associated revenues accounted for ~20% of this (~$940m).

NelsonHall estimates that the combined UX-UI consulting and implementation service revenues for BIO and broader Tech Mahindra totaled ~$75.1m in CY 2017, representing ~8.0% of digital transformation revenues.

BIO and Tech Mahindra deliver a full lifecycle of services in transforming customer and user interaction. These services span:

• Service design
• Strategy
• Technology
• Creative and interaction design
• User experience.

Tech Mahindra and BIO have a total of ~650 employees with experience capabilities. This includes ~120 based in London and another ~30 in New York. 

In addition to the legacy core BIO team, Tech Mahindra has ~500 employees that possess experience consulting, implementation and operating skills. This team is weighted toward India with NelsonHall estimating that ~80% (~400 FTEs) are located in India.

Tech Mahindra's 2016 acquisition of The BIO Agency provided it with a foundation of CX consulting and implementation personnel located in prime locations of London and New York. While the full integration of BIO with existing pockets of Tech Mahindra consulting capabilities is still in progress, BIO's roadmap to build a broad capability positions Tech Mahindra well through the complementing of BIO onshore specialists with Tech Mahindra's global technical and operational experience.

BIO's dedicated offerings and increasing focus on B2B and internal employee experience is complemented by Tech Mahindra's large client footprint and positions it well as companies increasingly turn CX efforts inward.

BIO's defined roadmap to both consolidate capabilities under a single organization and expand geographic footprint address the biggest challenges of a global IT service provider concentrating its capabilities in a single digital agency. The BIO Studio approach will help right-size the costs of longer-term initiatives and free up local specialist resources. Continuing to grow the network of client-proximate specialists in North America and Asia-Pacific is a good balance to the growth of the BIO Studio.

While BIO's workforce expands, it may want to look to expand its local design studio network as well. Having a broader network of local design studios will make it easier to get clients away from their offices to focus on design session without taking over legacy Tech Mahindra offices that may not be best situated to host design thinking sessions.