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Satyam Unveils Asia Pacific Expansion Plans

Satyam Computer Services will buy companies in Japan and open new software development centres in China and Malaysia to tap more business opportunities and lift its earnings from the Asia Pacific (APAC) region to about 20 per cent. The Hyderabad-based firm presently earns 16.5 per cent or about USD 165 million of its total revenues from the APAC region, which has often been neglected by Indian IT companies because of its fragmented nature and because it is perceived as a difficult terrain to do business.

The company is eyeing Tier-II cities in China to set up its fourth development centre, where it plans to have some 3,000 people by end-2008. It currently has development centres in Shanghai, Dalian and Guangzhou, where it has over 300 people, he said.

"Wage inflation and attrition rates in China are similar to those in India. We are looking to expand in Tier-II cities in China and want to develop China as an offshore base for our global customers. It is part of Satyam's de-risking strategy for North American and European customer base," Mr Aggarwal said.

In Malaysia, the company plans to set up a 500-people, new development centre soon, he said. Currently, about 125 people operate from its development centre in Kuala Lumpur. Nipuna, Satyam's BPO subsidiary, is also looking at Malaysia for setting up its delivery centre.

Further, Mr Aggarwal said the company's operations in Asia Pacific and Europe were growing at a faster clip as compared to the US.

"We are seeing great momentum in countries such as Australia, India, West Asia among others," he said. Satyam has also bid for Telstra's incremental outsourcing orders. The Australian telecom company is one of its top-ten clients.

According to him, the US currently contributes to about 65 per cent of the total revenues and the target is to raise the non-US top-line to account for 50 per cent in three years as part of the company's 'de-risking strategy'.


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