Financial Daily from THE HINDU group of publications
Saturday, Apr 22, 2006
Financial Daily from THE HINDU group of publications Saturday, Apr 22, 2006 |
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Info-Tech - Human Resources Satyam to hire 12,000 more this year V. Rishi Kumar
Hyderabad , April 21 Satyam Computer Services Ltd is programmed to add about 10,000 to 12,000 employees during 2006-2007 to fuel growth. It is working on a better compensation package for its employees, including a restricted stock option scheme to be launched on October 1, 2006. During the fourth quarter, Satyam added 3,079 employees, raising its headcount to 26,511. The total becomes 28,624 when the subsidiaries are taken into account. While Nipuna Services has turned the corner, making a cash break-even in the fourth quarter this year, the company expects all its subsidiaries to do better during 2006-2007. Nipuna recorded $20 million in revenues and the company has indicated that it would log in revenues of $36 million, representing a growth of about 80 per cent. Its employee base is now at 1,765, and it handles about 25 customers and 71 processes. Asked how the company expected to deploy the huge reserves of Rs 4,268 crore, Mr Srinivas, Satyam CFO, said about Rs 3,100 crore is now parked as bank deposit and fetches 4 per cent interest. It is a nice feeling to have such reserves when the company has ambitious growth plans.
Organic, inorganic expansion
"The funds will be deployed in both organic and inorganic expansion. We are constantly evaluating potential buyouts and have programmed a capex of $75 million this fiscal," he explained. The President of Satyam, Commercial and Healthcare, Mr Ram Mynampati, who has been inducted on the company Board, said demand continues to be buoyant and there is potential of increased IT spend. The global delivery model has come to be accepted and increasingly larger deals are making inroads.
Billing rates stable
During the fourth quarter, Satyam added 22 customers, including one Fortune 500 US corporation. "It is not right to say that larger deals squeeze margins. The billing rates are quite stable and we don't see much change during the year. Larger integrated deals have come to stay, where enterprises expect solutions for their technology and business issues," Mr Mynampati said. Referring to the demand for skilled professionals, Mr Mynampati said that the base from where one can recruit talent has increased significantly over the years and Satyam now has access to a larger pool of talent. But when it comes to lateral entries, there is demand for skilled professionals. It is here that the increased payment, coupled with a restricted stock option scheme, will help. On the acquisition of Citisoft and Knowledge Dynamics, Mr Mynampati said the company expected to continue with Citisoft brand and is set to integrate Knowledge Dynamics into the company operations.
Arbitration award
The company has filed a petition in the USDistrict Court in Michigan to recognise and enforce an arbitrators' award declared in favour of Satyam by the London Court of International Arbitration. This relates to a 50:50 joint venture of Satyam Venture Engineering Services and Venture Global Services and the proposal to acquire the holding of the latter in the joint venture.
More Stories on : Software | Human Resources | Mergers & Acquisitions | Satyam Computer Services Ltd
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