Satyam Computer Services Limited

(1)

Satyam Computer Service Limited in the United States of America

Mode of Operation

The company operates in the USA through a sales and marketing office. It also has a wholly-owned subsidiary, Satyam Manufacturing Technologies Inc.

Overview

Satyam began its operations in the US as a supplier of skilled software professionals to US-based companies. Its US subsidiary, Satyam Manufacturing Technologies, Inc., reported revenues of US$ 1.5 million in 2005-06.The subsidiary is headquartered in Delaware, and has offices in 16 other locations across the USA. It provides solutions to the niche manufacturing segment in the US market. It has implemented several defense-related projects for federal, state, and local government bodies in the USA.The US operation of the company employs, over 500 professionals.

Satyam provides services to global majors such as GE (which is the company's largest client) Ford, NCR, Sony, and State Farm Insurance. It also has technical collaborations with many large US-based firms, including EDS, CSC, and IBM.

In collaboration with the Carnegie Mellon

University, Satyam has developed an eSCM quality standard for BPOs. Global majors such as

Accenture, IBM, and EDS have implemented this standard. Its BPO arm, Nipuna Services Ltd., was the first BPO to be certified with eSCM capability Level. Satyam has been very active in forging

Company Background

Satyam Computer Services Limited (SCSL) was incorporated as a private limited company in June 1987.The company offers solutions in consulting and IT for industry verticals such as automotive, banking and financial services, insurance, healthcare, and manufacturing. It also has a business process outsourcing (BPO) division, Nipuna Services Ltd.

In May 1992, the company came up with a public issue in India and listed on the New York Stock Exchange in May 2001.

SCSL has technology partnerships with global majors such as Actuate, Adobe Systems Inc., Computer Associates International, Inc., IBM, and Microsoft. It complies with SEI CMM Level 5, ISO 9001: 2000, and eSCM norms.

Global Footprint

of Satyam Computer Services Limited

SCSL is present in over 55 countries across six continents, with development centres in the UAE, India, the USA, the UK, Canada, Hungary, Singapore, Malaysia, China, Japan and Australia. It has provided services to more than 541 global companies, including over 158 Fortune-500 companies.

SCSL generated approximately US$ 1096.3 million in revenues in FY 2006.The company recorded revenues of approximately US$ 1050 million in the nine months ending December 31, 2006. It had a 38,000-strong workforce as on December 31, 2006.

100

India_US book fin_96-136.qxd 6/15/07 10:23 PM Page 100

(2)

North America, which includes 321 applications in five locations across the US and Canada. It plans to add more than 400 associates to its US operations.This figure could go up to 750 within the next three years.

• In 2006, Satyam formed an alliance with a leading US-based enterprise portfolio management software organisation.This JV delivers

technology-enabled products and solutions to its clients in the enterprise portfolio management segment.

Success Factors

Focus on SAP

Satyam has a dedicated team of more than 3,300 professionals, including certified engineers and developers, chartered accountants, and vertical domain staff for SAP implementation. It is among the leading SAP vendors in Asia. Its SAP practice is divided into six segments: implementation, rollout, maintenance support, version migration and enhancement, integration and Web-enabling, new dimension solutions, and Team SAP-Retail.Though its SAP strength primarily lies in manufacturing, it also has a strong presence in the retail, automotive, and energy sectors.The company has developed a relationship with SAP, Germany and Sap, India, and has participated in some product development and testing initiatives with them.

Global Alliances

Satyam has been actively involved in forming alliances with global majors to gain access to new technology and enhance its service portfolio.

It has collaborated with many large MNCs such as EDS, CSC, and IBM. It also has alliances with prestigious academic institutes such as Carnegie Mellon University. . For instance, it has formed a JV with Computer Associates - Venture Global Corporation, Planview, to provide cutting-edge technology solutions to its clients.

strategic alliances (with many leading technology companies) and also undertaking acquisitions in the market. In 2005, Satyam acquired Citisoft Plc, a consulting firm specialising solely in investment management. Citisoft Plc. is headquartered in London and has a subsidiary in the USA, Citisoft Inc. In 2006, it reported revenues of US$ 13.18 million. Its customer base comprises more than 75 per cent of the top-50 global asset managers.

It is a leading supplier of strategic planning and implementation services to the wealth management sector.The company specializes in areas such as straight-through processing, client reporting, performance measurement, decision support, order management, trade execution, and outsourcing administration and custody.

The company has entered into over 60 JVs to increase its product and service portfolio.

Some of its prominent alliances are:

• Satyam has a JV with Computer Associates - CA Satyam ASP Pvt. Ltd.This joint venture is engaged in areas such as Knowledge & Document

Management, e-learning, e-collaboration, and Smart Card solutions.

• Satyam has another JV with Venture Global Corporation - Satyam Venture Engineering Services.The JV acts as the automotive division of Satyam Computer Services. Its various services include design engineering, process engineering, reverse engineering, product data management (PDM), knowledge-based engineering, and software customisation.

It has offices in the USA, the UK, Germany, Japan, Australia, and Canada.

• In 2006, Satyam was awarded a multimillion- dollar contract by Nissan for managing business applications in its North American market. In a span of less than six months, Satyam has become the sole provider of IT services for Nissan

101

(3)

Inorganic expansion

Satyam acquired Singapore-based Knowledge Dynamics Inc. in 2005 to gain access to data warehousing. Knowledge Dynamics is engaged in the business of providing data warehouse-based Business Intelligence (BI) solutions to consumer- oriented organisations.

Satyam has also acquired a UK-based firm Citisoft Plc.The company has undertaken acquisitions to gain access to technology in specific segments as well to gain market presence in a specific geography. Its acquisitions have assisted the company to increase its customer base, develop leading technology solutions, and expand its products and solutions offerings.

Future Plans

Exploring New Opportunities

SCSL plans to increase its capabilities to cater to the increase in demand for the service offerings in infrastructure management services (IMS) and integrated engineering services (IES), with a view to continue with its growth momentum.The company plans to increase its domain expertise in the IES and IMS segments by hiring specialists in engineering services and developing process competencies.

Strategic Deals Group

SCSL has established a Strategic Deals Group (SDG) to seize opportunities arising from the unbundling of large deals. SDG's mandate is to focus on large-sized contracts. In this context, SCSL has observed that large-size strategic deals of over US$ 70 billion will come up for renewal in the near future.The company intends to use both the IMS and the BPO services divisions (Nipuna) to bag these deals.

102