Satyam engineers its way into China
The expansion plans of Satyam in China is likely to see engg services becoming the main line of activity.
By TNN |
BANGALORE: The expansion plans of Satyam Computer Services in China is likely to see engineering services becoming the main line of activity. The IT services major is looking at adding a “several thousands of people” in China over the next few years where it has 300 people currently, according to a top official of the company.
Engineering services is expected to be next big growth engine for the Indian IT industry and a report by Nasscom and Booz Allen Hamilton has estimated it to be a $40 billion market opportunity by 2020.
Addressing mediapersons here on Friday, Satyam Computer Chairman Ramalinga Raju said that offshoring of IT services cannot be done from India alone and it has to include other developing countries.
Raju said the strength of China in engineering services is much stronger when compared to India. The market segments it would be looking at in China would include MNCs, domestic market and as a near shore destination.
Satyam which has 5,000 people in engineering services generates 10% of its revenues from this activity. For FY06, it reported revenue of Rs 4,793 crore.
According to Satyam officials, despite a larger number of players providing these services, it is better positioned as customers look for fewer vendors and a long-term relationship. The company which entered this segment 11 years ago has around 7 clients.
On the high attrition levels in Satyam which stands at 19%, Raju said it is significantly improving on the process and it is expected come down by several percentage points through both tangible and intagible measures.
Raju said Satyam would continue with its inorganic strategy, adding, “we will continue to scan the environment.”
Engineering services is expected to be next big growth engine for the Indian IT industry and a report by Nasscom and Booz Allen Hamilton has estimated it to be a $40 billion market opportunity by 2020.
Addressing mediapersons here on Friday, Satyam Computer Chairman Ramalinga Raju said that offshoring of IT services cannot be done from India alone and it has to include other developing countries.
Raju said the strength of China in engineering services is much stronger when compared to India. The market segments it would be looking at in China would include MNCs, domestic market and as a near shore destination.
Satyam which has 5,000 people in engineering services generates 10% of its revenues from this activity. For FY06, it reported revenue of Rs 4,793 crore.
According to Satyam officials, despite a larger number of players providing these services, it is better positioned as customers look for fewer vendors and a long-term relationship. The company which entered this segment 11 years ago has around 7 clients.
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The Satyam CEO said that the growth of engineering services is expected to be faster than IT services.On the high attrition levels in Satyam which stands at 19%, Raju said it is significantly improving on the process and it is expected come down by several percentage points through both tangible and intagible measures.
Raju said Satyam would continue with its inorganic strategy, adding, “we will continue to scan the environment.”
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