Tech Mahindra Deepens Ties with TPG Telecom Through New Acquisition

Tech Mahindra solidified its ties with Australian telecom giant TPG Telecom through the strategic acquisition of Orchid Cybertech Services Inc, a Philippines-based call center firm, for US$3.2 million.

Orchid Cybertech, with over 2,900 employees and US$33 million in annual revenue (FY2023), primarily serves TPG Telecom, a key client of Tech Mahindra.

Orchid will continue providing customer support to TPG under Tech Mahindra’s subsidiary, vCustomer Philippines Inc.

Gaining access to Orchid’s established operations and talent pool in the Philippines broadens Tech Mahindra’s reach and customer experience capabilities in the APAC region.

This acquisition comes amidst challenges faced by Tech Mahindra’s core telecom client base. In mid-2023, the company reported its largest profit decline in over 16 years, partly attributed to financial pressures faced by telecom clients due to intense competition.

Diversifying its client portfolio and expanding into lucrative markets like the Philippines are strategic steps Tech Mahindra is taking to mitigate such risks, say industry analysts.

This marks Tech Mahindra’s second acquisition in the past year, following the purchase of Mumbai-based Thirdware Solutions in March 2023.