The role of HR practices in managing culture during the post-merger integration process of Igate - Patni
In partial fulfilment of the requirements of the course
“Human Resource Management”
of MBA (Full Time)
10th January, 2012
Submitted To: Submitted By:
Prof. Sameer Pingle Karan Bhadra (111230)
|Sr. No. |Particulars |Page No. | |1. |Background and Preliminary Literature review |2 | |2. |Research Problem |3 | |3. |Methodological Discussions |4 | |4. |References |6 | | | | | | | | | | | | |
TABLE OF CONTENTS
The role of HR practices in managing culture during the post-merger integration process of Igate – Patni.
About iGATE-Patni Deal:
iGATE announced Completion of Patni Acquisition on 10th January 2011 by acquiring a majority stake in Patni(1). Buying out the shares of the principal stock holders, Narendra Patni, Ashok Patni, Gajendra Patni and General Atlantic gave iGATE a majority stake of approximately 83% in Patni Computer Systems. Both the companies decided to co-exist as separate listed entities and adopt concept of integration. As a result of the acquisition, the Board at Patni has been recomposed comprising of the following: Jai Pathak, who will serve as the Chairman of the Board, Phaneesh Murthy, CEO, Shashank Singh, Co-Head of Apax India and Göran Lindahl, Member of iGATE Board, are the new directors with existing members Vimal Bhandari, and Arun Duggal continuing as independent directors. Moreover the employee strength of iGATE-Patni now is 26000 numbers and the company is striving to ensure a career experience and cohesive environment for them. iGATE Corporation, the first integrated Technology and Operations (iTOPS) company providing Business Outcomes based solutions under the brand iGATE Patni has been ranked third in Data Quest CMR Annual Survey of the Top 20 best IT Employers in India(2). For the fifth year in a row, iGATE Patni was ranked among the top three employers. The parameters considered for listing the rankings are image, company culture, job content, salary and training.
M&A is one of the in trend HR areas right now. This is because:
1) Global trends: With Corporate America’s improved cash balances, it has signalled that there may be more global mergers ahead. The nations are opening up and also world trade is growing, free trade agreements make it easier to transport goods, and mergers can help with entering emerging markets, cutting costs, and gaining competitive advantages.
2) Economics: Publicly traded companies are in constant need for raised earnings. If they aren’t able to generate internally, they may seek to acquire companies to boost their earnings.
3) Demographic shifts: In case of a labour shortage or enormous lack of qualified workers, M&A...