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Satyam to step up SAP headcount

Raja Simhan T.E.

Opens near-shore centres in Hungary, Brazil

Chennai , Aug. 2

Satyam Computer Services Ltd will add about 1,000 professionals with SAP capabilities during the current fiscal. It is recruiting about 250 SAP professionals every quarter, according to Mr Manish Mehta, Director and Senior Vice-President (SAP, Engineering and Spatial Services), Satyam.

Out of the total 30,000 Satyam employees, about 3,000 employees have capabilities in SAP, an enterprise resource planning (ERP) software application. "We have a pre-eminent space in SAP and have moved from offshore leadership to global leadership in the last one-and-half years," he told Business Line.

Satyam hires people at entry level from colleges and trains them on SAP applications, and also gets them certified from SAP, the German company that has developed the application. The Hyderabad-based software company also hires professionals from sectors such as banking and automotive and puts them on a similar training on SAP. The company then puts the SAP trained professionals on shadow projects along with experienced people, and later allows them to work on regular projects, he said.

The global ERP industry, which includes software applications from companies such as SAP, Oracle and Seibel, is about $15 billion and is growing. SAP has a 22 per cent market share, he said.

Enterprise practice, which includes SAP, Oracle and consulting, contributes about 40 per cent of Satyam's revenue, which was Rs 1,443 crore for the quarter ended June 2006. "For the nearest competitor, revenue from this practice is about 25 per cent," he said.

Attrition is an issue, and rival companies have absorbed many of Satyam's SAP professionals. "Companies such as Accenture and IBM took away many of our professionals. However, a number of them are coming back," he said.

Expansion

Satyam recently started near-shore centres in Hungary and Brazil to offer SAP services to clients in Europe and Latin America respectively. Each centre has about 20 people. The Hungary centre offers language and cultural skills that European clients seek. The cost is lower compared to Western Europe, but higher than in India, he said.

Clients

Out of Satyam's 400 plus clients, 125 are in SAP and have stayed with the company for 3-4 years. The company does SAP implementation, rolls out new projects, develops and supports projects on SAP. Some are multi-million, and multiple year contracts, he said.

Majority of Satyam's customer wins in SAP is against global system integrators such as IBM, Accenture and CSC, and not against Indian companies.

Forrester survey

Forrester, a research company, in its report The Forrester Wave, Indian SAP Services, in October said Satyam has the strongest, most global SAP offering. Of all the Indian vendors, Satyam clearly has the largest and deepest SAP practice. Its track record and client references underscore its long-term investment in this area. Satyam will continue to invest in SAP skills and offerings and is likely to maintain a lead in this area for at least the next 12 months, despite the impressive SAP investments on the other Indian vendors, the report said.

TCS has the strongest strategy in terms of relationship to SAP and its ability to provide differential services. Wipro's tremendous SAP capability is growing rapidly and provides strong competition to other top vendors, particularly when it comes to global end-to-end implementations. Infosys, though a late entrant to the SAP market , distinguishes itself with high-value consulting skills for large SAP implementations. Through its Infosys consulting division, the company can compete directly with firms such as Capgemini, Deloitte or IBM for pre-implementation phases or end-to-end implementations.

L&T Infotech and Patni are strong performers, and Cognizant, Intelligroup and ITC Infotech offer excellent options for SAP technical work, the report said.

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