$200-Million Worth Deals Clinch For Satyam
posted in Outsourcing News and Top Outsourcing deals |Source: Business Standard
Hyderabad-based Satyam Computer’s engineering services division is all set to clinch deals worth $150-200 million (between Rs. 600-crore and Rs. 800-crore).
Just recently, it has bagged four major deals in Singapore, Australia and the UAE, which cumulatively are valued at $70-75 million.
TSK Murthy, Head (Integrated Engineering Solutions), Satyam says: “We see aerospace, high-tech telecom, automotive and industrial manufacturing as the fastest and dominant growing sectors. Besides, with task-based projects transforming into programme-based projects, the deal sizes in this space are getting bigger at between $20-million and $40-million each.” He goes on to confirm that Satyam has eight deals in the engineering services sector in the pipeline, each ranging from $20-million to $25-million, adding “The deals are at various stages of maturity. A few of them may be wrapped up by the current financial year-end.”
According to Murthy, the next three years will see the division investing around $5-million in building centres of excellence (CoEs), along with appropriate infrastructure, and as a part of which, an electro-mechanical lab will come up in Hyderabad and Bangalore.
As well, Satyam’s engineering services division, which contributed 7% to Satyam’s total revenues last financial year, and accounted for 7.2% during the first quarter of the current year, is also set to double its headcount. All part of Satyam’s expectations that its engineering division will add double-digit growth to it’s top line during the current financial year.
Not far-fetched at all, as a 2006 Booz-Nasscom study indicates that by 2020, global off-shoring of engineering services will become a Rs $200-billion opportunity. On the right tack, Satyam is one the first few Indian firms taking advantage of the next big thing i.e. Engineering Process outsourcing (EPO). Even as, Vikas Sehgal, Partner, Booz Allen Hamilton, Chicago, says: “With its inherent talent pool and the growing automotive and aeroplane markets in India, the country could capture 25% of this.”
