Tech Mahindra's acquisition of Satyam could change the Indian IT league

Continuation from previous post on Tech Mahindra's bid for Satyam
Currently, the top 10 players in the Indian IT industry (by revenues) are:

		Net Sales	Profit
		Rs. Crore	Rs. Crore
1	TCS	18534	4,509
2	Wipro	17493	3,063
3	Infosys	15648	4,470
4	Satyam*	8137	1,716
5	HCL Tech.	3769	1,102
6	Tech Mahindra	3605	326
7	Oracle Fin. (iFlex)	1793	411
8	Mphasis	1452	265
9	Financial Tech.	1254	961
10	Patni Computers	1172	388

* as per the latest audited data which may be subject to change after the revised audit by new auditors.

The top 3 players were at a much higher level compared to others. The combined revenues of Tech Mahindra and Satyam will reduce the gap and the combined entity could pose a serious threat to the top 3 in the medium to long run. However, in the short run there are strong challenges for Tech Mahindra. Retaining customers of Satyam is a crucial factor and Tech Mahindra will be doing every bit to save each customer. Besides other M&A related issues, managing diverse domain businesses will be tough task for senior management.
If managed well the synergies between the two companies can pose serious threat to TCS, Infosys and Wipro. Tech Mahindra's promoter British Telecom (BT) has businesses with all the top 3 companies and its business with Infosys is 6% of Infosys' total revenues. With Satyam in Tech Mahindra's kitty it could as well provided those services to BT which Infosys, TCS and WIpro are providing currently. Moreover its automotive IT business can be positively impacted because of Mahindra group's automobile business.