Shares of Satyam Computer Services hit the upper circuit for the third consecutive day on Thursday-almost unimaginable-when the firm?s very sustainability was under question just a few months ago.
Satyam?s revenue and profit figures for January and February, along with those for the quarter ending December 2008, are based on a lot of estimates. Lawsuits along with several unacknowledged creditors continue to haunt its new owners, TechM. But the euphoria refuses to die. However, it is hardly the time to rest on past laurels. The company has already lost six months battling the crisis within as its competitors were hard at work to crack the global economic meltdown. The financial turmoil, especially in the Indian IT industries? key markets US and Europe, is signalling the emergence of many new models of outsourcing.
India?s top IT companies like Infosys Technologies and HCL have announced that new models of technology and outsourcing like solution-based offerings, platform-based BPO and software as a service (SaaS) will be the future growth drivers. As its key markets see reduced IT spends, the industry is busy scouting for opportunities elsewhere?in new emerging geographies and in untapped verticals.
One space which is seeing action like never before is the domestic IT market. While players like TCS and IBM already boast of a stronghold in this space, others like Infosys, Wipro and HCL are putting in place strategies along with dedicated India units.
Though Satyam can find solace in the fact that its new owner?TechM?is an experienced IT player and is clued into the changing technology landscape, the company will have to pull up its socks fast and launch itself into the grind. Satyam has lost several marquee clients, most of whom will never accept bids from it in future. It will also have trouble bidding for several contracts that make it mandatory to provide financial details, as Satyam?s accounts are yet to be reinstated. Moreover, the financial crisis is spurring many vendor consolidation exercises along with like-never-competition in the industry for even small deals. The show has just begun.
surabhi.a@expressindia.com