Satyam bets on high-end deals

HYDERABAD: Satyam Computer Services is betting big on high-end engineering services deals to offset the impact of a rising rupee. The company is in talks with customers and deals worth $200 million are in the pipeline.

The company is also looking at leveraging on its expertise in its largest vertical, manufacturing, to clinch more deals in the high-margin engineering design sector. Manufacturing accounts for nearly 25 per cent of its revenue. Satyam will spend about $5 million in three years for developing talent pool and infrastructure within the company to cater to the needs of this segment.

“We are in talks with eight customers for deals worth about $20 million to $25 million each. By the end of this financial year, we expect to finalise at least two deals,” said Satyam integrated engineering solutions head TSK Murthy.

Addressing a teleconference on Monday, he said, the company would also look at clinching new contracts for high-end engineering design work including IP generation from its existing clients in the manufacturing vertical.

“Of the new contracts, 60 per cent will be from our existing customers in the manufacturing vertical,” he said. “We see traction in aerospace, automotives, high-end telecom and industrial and farm equipment segments.

Companies are beefing up their outsourcing budget for conducting product design works,” said Mr Murthy.