Acquisitions, expansion on Satyam's agenda

Written by Reuters | Singapore, September 27: | Updated: Sep 27 2007, 17:37pm hrs
Software services firm Satyam Computer Services said on Thursday it was seeking acquisition of IT infrastructure management services firms to boost business with its banking and telecom clients.

Satyam, which draws most of its revenues by selling business software, consulting and process outsourcing, has seen fast growth in the infrastructure management services (IMS) segment where it helps firms with their networks and databases.

"We are already in talks with some companies for acquisition in the IMS space in Europe and the United States," Virender Aggarwal said in a phone interview from Brisbane, Australia where he was attending the opening of an IT solutions centre.

"We have seen very strong growth in the IMS and we want to strengthen our position in this segment, which would benefit our clients in banking and telecom sectors," he said.

Singapore-based Aggarwal, who heads Satyam's business in Asia Pacific, Africa and the Middle East, said the company expects the region to contribute more than 20 percent of global revenues by March 2010, up from around 18 percent.

Aggarwal also said Satyam, plans to expand its presence in China, Malaysia and Egypt by hiring more staff to serve new customers.

He said the number of Satyam staff in China would grow to 2,500 from 500, in Malaysia to 2,000 from 500 and in Egypt to 300 from 75 by the end of 2008.

"The expansion will come as we hope to win several big deals in the region," Aggrawal said.

Satyam, which has a market cap of USD 15.3 billion, competes with Tata Consultancy Services, Infosys Technologies and Wipro Ltd at home and companies like Accenture and Electronic Data Systems globally.