The Hindu Business Line : Satyam's global expansion in sync with local needs

"Our new virtually integrated global delivery model 2.0 is changing the way outsourcing is done. We are now globalising the supply chain with development centres in Malaysia, China and now Egypt and Saudi Arabia. Our global expansion will be fuelled by localisation — investment in local people, who will bring us closer to our customers," said Mr Virender Aggarwal, Director, APAC, India, Middle East and Africa, speaking at an IT Roundtable in Dubai city on `Globalisation through localisation'.

Giza centre

The latest addition to the company's global delivery model is in Egypt. Elaborating on the recently announced plans to set up a 300-seat development centre at Giza, Mr Aggarwal said the company would strengthen the facility. "Egypt is a great location for delivery to the Middle East market, especially the Saudi Arabian and government market. We will have an edge over the competition by localisation," he said.

Top management of Satyam gathered on a wintry Wednesday evening to discuss the firm's progress in West Asia. Eight years ago, Satyam began operations in Dubai, which is now the anchor to its business in that region. The company experienced a 70 per cent year-on-year growth in revenue and is targeting banking, manufacturing, oil and gas industries. Satyam also expects the government sector to grow as an IT buyer.

Organisations in West Asia are increasing their IT spend. Kuwait Oil Tanker Company spent $6 million on installing enterprise resource planning for its 26 vessels. The IT solutions market for the government sector is $35 million. The company competes with the likes of IBM, Oracle and Deloitte in West Asia. Customers present at the roundtable included KOTC, BMMI and Nissan.

With dropping contribution to revenue from North America, the company is looking at new countries such as Europe, Africa and West Asia to grow.

Need to fan out

"Markets are leaning towards this growth outside our primary markets. With the increasing number of orders from outside American region, we have realised the need to fan out," said Mr Ram Mynampati, President, Satyam. The company is closely watching economic shifts, and will "follow the customer".

Brand Satyam: Indian no more?

"It is not enough to be known as an Indian firm. We are enhancing our brand to become known as a global IT services company," said Mr Ram Mynampati, President, Satyam, speaking at the sidelines of the IT roundtable organised in Dubai recently.

The company is trying to dispel its image as a low-cost service provider and a SAP shop. The term `solution provider' is more appropriate, opined Satyam leaders.

New strategies

While they admit that `price was a ticket to the game', they now feel it's time to `play with other strategies'. Since the past two years, Satyam has started to work on its branding, bringing senior management into the discussion to make the firm's customers and users recognise it as a global player. Satyam is targeting emerging verticals such as travel and transportation, public sector, real estate, development banks and retail.

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