The Hindu Business Line : Satyam bags Nissan NA order

Nissan North America has selected Satyam Computer Services Ltd as the sole information technology service provider. Satyam officials declined to give a value for the five-year deal, but sources said it could be above $100 million (over Rs 450 crore).

The $80-billion Nissan is the second major automobile client that the Hyderabad-based consulting and information technology company has won in the last three months. In January, Satyam bagged a $150-million (Rs 650 crore) five-year deal from General Motors through a partnership with Tier-I vendors Hewlett Packard and Capgemini.

Dedicated centre

Mr B. Rama Raju, Co-Founder and CEO, Satyam, told newspersons that the company will provide maintenance support for Nissan North America's entire application management system.

Satyam has set up as a dedicated 50,000 sq ft facility for Nissan in Chennai with 350 employees to be deployed, and it would be increased to 750 in the next three years, he said.

Mr Subu D. Subramanian, Director and Senior Vice-President, Satyam, said the company took over the assignment from another company, and the transition to Satyam would happen in the next couple of quarters.

The deal comprises multiple business functions from product development to supply chain management, manufacturing to sales and marketing across multiple technologies, he said.

Satyam has been working with Nissan for the last three years, but those were project-specific. For the new assignment, Satyam engaged a team to ascertain the problems Nissan had, and later told the benefits that Satyam would provide in terms of rationalising the processes and transactions, leveraging the offshore presence and the savings that the automobile major would get in the long run.

There is a scope for extending such a relationship with Nissan's other locations globally, he said.

Mr Subramanian said Satyam has about 2,500 employees in the automotive sector, and there is scope for doubling this number in the next three years.

Chennai campus

The first phase of Satyam's 50-acre campus on the Old Mahabalipuram Road (IT corridor) in Chennai is expected to be ready in the next 12 months, according to a Mr Subramanian.

Satyam plans to have about 3,000 employees in the first phase, which could cost about Rs 30 crore.

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