Vendor Analysis
published on Apr 29, 2020
Report Overview:
This NelsonHall assessment analyzes Tech Mahindra's offerings and capabilities in Digital Experience Consulting Services
Who is this Report for:
NelsonHall’s Digital Experience Consulting Services Vendor Assessment for Tech Mahindra is a comprehensive assessment of Tech Mahindra’s digital experience consulting services offerings and capabilities designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for digital experience consulting services
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the experience consulting services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of Tech Mahindra’s digital experience consulting service 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 was founded in 1986 and is headquartered in Mumbai, India. A major shareholder is Mahindra Group (with ~26.3% of shares).
To develop its experience consulting capabilities, Tech Mahindra has integrated their consulting units into an organization called Business Excellence. This consulting group acts as a centralized capability to drive client transformation across business and IT functions and processes, primarily through the application of digital capabilities.
Tech Mahindra has augmented these capabilities through inorganic growth, primarily comprised of three acquisitions:
- In June 2016, Tech Mahindra acquired 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
- Also, in June 2016, Tech Mahindra acquired Pininfarina, an Italian provider of design services, addressing mostly the car industry and other manufacturing firms.
- In July 2019, Tech Mahindra acquired Mad*Pow Media Solutions, a firm based in Boston, MA, with offices in Portsmouth, NH, U.S. Mad*Pow was launched in 2000, has a headcount of 70, and provides UX and design services, along with content strategy, mobile app and website development, and analytics services. Mad*Pow had revenues of $14.7m in 2018
- In November 2019, Tech Mahindra acquired 100% of U.S. digital marketing agency BORN Group for $95m. BORN provides strategy consulting, content creation, marketing production, e-commerce and content management system implementation, marketing analytics, UX, and design. Its clients include Sotheby’s, Red Bull, Skull Candy, Harley Davidson, Ferragamo, Fossil, Ethan Allen, Thomas Pink, Glanbia, Tetley Tea, Maxim, TAG Heuer, The Limited, Stuart Weitzman, Salvatore Ferragamo, Nanette Lepore, Net-a-Porter, and Lord & Taylor.
Tech Mahindra revenues for CY 2019 totaled ~$5.1bn. NelsonHall estimates that digital revenues represented ~39% of this (~$2bn). NelsonHall further estimates that Tech Mahindra's CY 2019 digital experience consulting revenues accounted for ~20% of digital revenues, totaling ~$400m.
At the core of these services is Tech Mahindra's use of design thinking. Based on the Stanford d.school approach, the Tech Mahindra approach is grounded in empathy to enable designing for purpose.
Tech Mahindra has been able to use this approach to expand relationships with existing clients as well as open doors at new logos. It is also using this as a foundational element across the individual organizations that deliver these services. It focuses its design thinking approach to balance the achievement of client objectives, including: stakeholder alignment, ROI, customer experience, change management, risk, and efficiency.
Tech Mahindra has ~3k consultants across its digital experience consulting services. These are a mix of employees of acquired capabilities and its Business Excellence consulting capability.
Tech Mahindra is making a significant investment in its digital experience consulting capabilities, by bringing together its consulting units to strengthen the Business Excellence consulting group and making several acquisitions. These acquisitions are largely complementary in capabilities, geographies and focus industries. While these acquisitions bring Tech Mahindra an end to end capability, it also will require a significant focus on the integration of capabilities to create a seamless service to ensure that these groups are organized for minimal duplication of services, are leveraging a common delivery foundation, possess clearly defined capability focus areas and a clear go-to-market strategy.
The ability to describe these service capabilities to clients is especially important as Tech Mahindra uses these capabilities to penetrate new logos and expand relationships with existing clients. Ensuring clients understand the breadth of these capabilities and have the confidence in Tech Mahindra's ability to deliver will be critical for Tech Mahindra. An ability to clearly articulate the role that each entity plays in service delivery and how they coordinate will be fundamental to building that trust.
