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Tech Mahindra- Software Testing 2014

Vendor Analysis

by Dominique Raviart

published on Jun 27, 2014

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Report Overview:

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 BPO services portfolio, and Mahindra Satyam had focused on a wide range of enterprise clients, including telecom.

Who is this Report for:

NelsonHall's Software Testing Vendor Assessment for Tech Mahindra is a comprehensive assessment of Tech Mahindra's software testing offerings and capabilities, designed for:

  • Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for software testing services
  • Vendor marketing, sales and business managers looking to benchmark themselves against their peers
  • Financial analysts and investors specializing in the software testing sector.

Scope of this Report:

The report provides a comprehensive and objective analysis of Tech Mahindra's software testing offerings, capabilities, and market and financial strength, including:

  • Analysis of the company's offerings and key service components
  • Revenue estimates
  • Identification of the company's strategy, emphasis and new developments
  • Analysis of the profile of the company's customer base including the company's targeting strategy and examples of current contracts
  • Analysis of the company's strengths, weaknesses and outlook.




Key Findings & Highlights:

Tech Mahindra is the sixth-largest India-centric IT and BPO services vendor.

On a pro-forma basis, Tech Mahindra had CY 2013 revenues of ~$2.97bn. Revenues in FY 2014 (the year ending March 31, 2014) were ~$3.10bn, up 18% (in dollar terms). EBITDA margin was 22.2%.

Tech Mahindra has recently changed the name of its testing practice from QEdge to Tech Mahindra Testing Services (TS). TS is a testing practice that has several roles including pre-sales consulting; creation of service offerings; building and maintenance of IPs, accelerators and tools; and delivery help in certain projects. The unit has dotted line responsibility over testing delivery.

Tech Mahindra aims to provide the full range of software testing services to clients, ranging from functional testing to non-functional testing, and from consulting to professional services and managed testing services.

The company believes that, thanks to its telecoms background, it can support a wide range of technologies including enterprise applications, telecom-related technologies, and product engineering and embedded systems.

Methods of engagement vary from staff augmentation to fixed price outcome-based/output-based engagement.

The company targets large enterprises across all sectors. It has 280 Fortune 1,000 clients.

Tech Mahindra has introduced several specialized offerings, to drive its portfolio differentiation and provide better margins.

The specialized offerings are:

  • Service virtualization/application release automation
  • Model-based testing
  • Migration from License Tools to Open Source (MiLTOS)
  • Structural Testing Analysis and Measurement of Projects (STAMP)
  • TMMi-Aligned test consulting
  • Enterprise mobility and device testing
  • Security testing
  • Quality Assurance as a Service.

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