The Hindu Business Line : Satyam’s new delivery model holds promise

For Indian software companies looking at alternative service delivery models, there appears to be a new avenue. Satyam Computer has announced the launch of ‘software as a service’ (SaaS) targeting SMEs in the US and Asia-Pacific Centre regions. In India, Satyam is partnering with Nasscom and Federation of Andhra Pradesh Small Industries Association for rolling out services to SMEs in Hyderabad. SaaS is delivery model where clients would pay for IT systems/services on a usage basis. It requires a customer having Internet access and a compatible browser only. Satyam would be responsible for hosting and maintaining the application platform, while minimising personnel deployed on onsite or offshore locations.

If this service does take off, it is likely to bring down costs of IT implementation for smaller companies who buy software and help greater market penetration. It may also quicken time to market. Satyam is targeting companies in the US and elsewhere in the supply chain and customer relationship management businesses. Considering that Satyam has strong business partnerships with leading enterprise resource planning

players such as SAP, Oracle and Microsoft, it could leverage on this to deliver services in SaaS mode to customers. Typical services that may be covered include details on sales, purchase, production, shipments, finance and accounting. Globally, salesforce.com is a successful SaaS model. Satyam may see improvement its revenues and realisations if this model succeeds.

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