Mahindra Satyam bags two vital contracts in oil & gas, retail sector

Written by Rachana Khanzode | Mumbai | Updated: Jul 22 2009, 06:47am hrs
Mahindra Satyam (Satyam Computer Services) has won two significant contracts in the oil & gas and retail sectors.

It has also won some new contracts in the healthcare and engineering services. These contracts come from developed markets like the US and Europe. Last week, Mahindra Satyam announced its five-year contract with GlaxoSmithKline. Satyam had earlier lost GSK along with other clients like State Farm Insurance, Cigna, Citigroup, Merrill Lynch, Novartis, and Coca-Cola.

Mahindra Satyams head of media relations Sridhar Maturi said, There are new client gains in the healthcare, retail and engineering services for specialised contracts in enterprise applications, business intelligence, integrated engineering services and SAP.

However, the company refused to share the size of these contracts and said they are large ones that are multi-million and multi-year. The new business is also expected to bring some scope for Satyam to call back some of its employees from the Virtual Pool Program (VPP). Last month, Satyam had sent about 8,900 employees on the VPP with basic pay packages. As of now, about 700 employees have rejoined the company.

Satyam then, had also set up a outplacement cell to help these employees get placed in other IT companies. In an email response on how many employees have been outplaced, Satyam said, The offers have been made to associates by companies through the outplacement initiative but we will not be able to share numbers as the company and associates are closing the process between themselves after we have initiated the same.

Tech Mahindra, a dominant player in the telecom sector and the new owner of Satyam, is also set to have leveraged the potential of Satyam employees. Satyam cross-shared about 400 employees with Tech Mahindra and these were largely in the telecom domain for skill sets in the areas of Java, .net, Oracle, testing and business intelligence.

Shares of Mahindra Satyam on Tuesday closed at Rs 94.45, down 2.78% on the Bombay Stock Exchange and at Rs 94.70 down 2.47% on the National Stock Exchange.