C.P. Gurnani, who has been designated as the Chief Executive Officer of Mahindra Satyam-Tech Mahindra after the merger, has said that the world around is set to face a ‘perfect storm’.
“Growth rates of India and China are slowing down and Europe is showing strains. Clouds of uncertainty are over us. We are dependent on the global economy and industry. So, we too be will be impacted. We have to be ready to face the storm,” he said.
He hinted at signals of that storm. “Decision cycles of customers are getting longer. They have become very cautious on spending. Spending by public services, Government and Defence has slowed down,” he said.
Global headwinds
Gurnani is candid about the headwinds in the US, Europe and Asia-Pacific region. “We have not grown and seen a decline in Europe and the rest of world (sans the US), particularly in the Asia-Pacific region. We, however, are growing in the Gulf and Africa with the help of Tech Mahindra’s presence,” he said.
The US, however, continues to be the biggest revenue earner with a contribution of 55 per cent. This was followed by the Europe with 22 per cent. While the BFSI (banking, financial services and insurance) contributed 20 per cent, manufacturing earned 34 per cent and retail and healthcare 18 per cent. But, who is better prepared than us, he asked, reflecting on the three-year struggle to revive the scam-hit company three years ago.
Worst scenario
While saying that that company is optimistic about growth, he said there could be a worst kind of situation with a decline of 10 per cent. But then, you are asking a company that has been consistently delivering growth rates despite odds.