The Hindu Business Line : Satyam upbeat on engineering services

Hyderabad, July 24 Satyam Computer has hinted at the possibility of bagging about 7-8 deals worth about $200 million in the engineering services space that currently accounts for about 7.2 per cent of its total revenues.

Betting big on design, engineering capability, Satyam plans to double headcount of 3,500 people in the engineering services within two years. It is on course to investing $5 million in creating two innovation labs, one each in Hyderabad and Bangalore.

These labs will complement two existing ones in Hyderabad and Bangalore with capabilities in the area of electronics, mechanical and hydraulic solutions.

The Senior Vice-President of Satyam and Head of Engineering Practice, Dr TSK Murthy, said the engineering services has witnessed rapid pace of growth and is poised to contribute to more than double digit revenues up from 7.2 per cent now on the expanded base. This offered immense scope to mine into a large manufacturing base of Satyam customers.

Negotiations were on for more deals and the pipeline is healthy. The deal sizes are getting lot bigger and could potentially range between $20-40 million, he said.

Refraining to comment on the customer names, Dr Murthy said these are in the areas of aerospace, automotive and high-tech manufacturing services.

The company has established centres of excellence in electromechanical services, set-top boxes and IP TV.

OVER 400 SUPPLIERS

“What started as test and pilot initiatives in the engineering services business have gradually moved on to become projects and later on to integrated programmes. Satyam has now partnership with over 400 suppliers globally offering customers the capability to roll out products,” he explained.

“What we design and innovate today will roll out into the market by 2010-2011. Our designs have lead to over 60-70 plus patent filings whose IP is owned by the customers. Satyam has developed a framework referred to as I3 Innovation Platform that helps companies in ideation. We are seen to play the role of not just a services provider but as a value creator,” Dr Murthy said.

Speaking to newspersons over a conference call after the Engineering Conclave, Dr Murthy said Satyam plans to expand operations and potentially in China and Malyasia, where there is potential for upside.

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