WSJ: “It is good to do the first interview in Davos with someone who can feel the pulse of the global economy, and Anand Mahindra, chairman and managing director Mahindra & Mahindra Ltd. 500520.BY -0.19%, can to an extent do that.
Sure, the giant Mahindra federation of companies—don’t call it a conglomerate, please—has many large businesses focused on its home market of India. But its information technology business relies on the investment decisions taken in the boardrooms of New York, London and Frankfurt—and the feeling of Mr. Mahindra is positive.
“The IT companies are going to see a revival,” says the Harvard-educated Mr. Mahindra. “I have been surprised at how strong the recovery has been.”
“What we are seeing is that customers in the west, by which I mean U.S., U.K. and Western Europe, these companies have not shied away in the last year from making the necessary investments in IT that they need to improve their businesses.”
That would be good news for the broader IT sector in India, which started the year with upbeat corporate results from some of the big players, but then some of the shine diminished when No. 3 player Wipro Ltd. 507685.BY +0.75% said it didn’t see any significant increase in demand.
It would also be good news for the broader global economy. Mr. Mahindra says, “I don’t think anyone in the world uses Indian IT companies as a barometer, but I think it’s a very interesting one.”
Mahindra & Mahindra has an incredibly diverse range of businesses, from tractors to parts for jet fighters to rural lending.
Mahindra Group has two software services companies—Tech Mahindra Ltd. and Satyam Computer Services Ltd. 500376.BY -0.30% The two companies have already announced a merger, which will create the fifth biggest Indian software services company by sales.
For the domestic business environment, he says he is more optimistic now than he has been for a couple of years.”
via Mahindra Sees IT Revival – India Real Time – WSJ.
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