The Hindu Business Line : Satyam to scale up operations in China

CHINA HO! Mr B. Ramalinga Raju(left), Founder and Chairman, Satyam Computers, and Mr T. S. Krishna Murthy, Senior V-P, Integrated Engineering Services, at a press conference in Bangalore on Friday. - G.R.N. Somashekar

Bangalore , Aug. 4

Satyam Computer Services Ltd sees its headcount in China running into a few thousands, up from the present 300, in the next few years as it expects to scale up the operations significantly in that country.

"We consider operations in China to be of strategic importance for us because many of our present customers already have their operations there," said Mr B. Ramalinga Raju, Chairman.

"Several thousand people would operate out of China in the next few years," Mr Raju said, adding the company intended to grow operations in China with a view to serving its clients there and take advantage of the talent pool available in the engineering services.

Engineering services

A significant portion of the increased headcount in China would in the engineering services domain, Mr Raju said. Engineering services is one of the fastest growing areas for Satyam and contributes to about 10 per cent of the company's overall revenues. "We expect engineering services to grow faster than the growth of the company itself. What we may do in the field of IT may open opportunities in the engineering services sector and vice-versa," he said. Replying to a query, Mr Raju said the company has seen a significant improvement in the attrition levels following a recent wage hike. However, Mr Raju did not elaborate. Satyam reported a 19 per cent attrition rate for the quarter-ended June 30. Satyam, which employs around 30,000 people, recently raised employee wages by 17-18 per cent across its centres in the country.