The Hindu Business Line : Satyam to spend Rs 150 cr on expansion this year

SATYAM Computer Services Ltd plans to invest Rs 150 crore during the financial year to fuel expansion plans that would see a separate centre to host about 1,500 people in Hyderabad and while strengthening near-shore overseas support centres.

Recently, the company opened an office in Chennai, commissioned another centre at Bhubaneshwar and is in the process of developing a facility in Kolkata. The company has entered into an agreement with the West Bengal Government to acquire some land for expansion.

Satyam has added about 1,600 associates to further itsgrowth plans during the first quarter and expects to add about 4,000 techies this year.

As part of its expansion in the overseas markets, the Chairman of Satyam Computer, Mr B. Ramalinga Raju, said the company is set to open a new near shore centre at Hungary to service the East European countries just as its Toronto office serves the North American market, Dubai the African market and China the Asia-Pacific region.

Nipuna Services, the BPO subsidiary of Satyam, has added three new customers in Q1 and the number has swelled to 14 active customers.

The BPO subsidiary is transitioning into a shared services desk for a leading biosciences company and a customer support process for a leading telecommunications company.

"We expect synergies between Satyam and Nipuna and there is the possibility of some Satyam clients becoming Nipuna customers and vice versa," Mr Raju said.

Interestingly, the business from the US is estimated at about 69 per cent and the rest being generated from enhanced business from Europe, South Asia and other countries.Healthcare registered a growth of about 40 per cent and telecom vertical witnessed a growth of 19 per cent, Mr Raju said.

The attrition level is 17 per cent in Satyam, which is below the industry average. However, in Nipuna, this is 2 to 2.5 per cent per month, slightly lower in comparison to the relatively higher levels in the BPO industry, Mr Raju said

On pricing, the Chief Financial Officer of Satyam, Mr V. Srinivas, said that the pricing environment is stable and the US business is generally looking up, reflecting in better business deals that too in favour of outsourcing.

On sentiments against outsourcing, Mr Ram Myanampati, President, Satyam, said, "There are signs to show that this matter has abated. However, we are not in a position to comment as to how this matter takes shape during the elections and going beyond into the next year".