Satyam Computer Joins The BPO Bandwagon

Hyderabad: | Updated: Apr 25 2002, 05:30am hrs
In a bid to create value resources further and benefit its shareholders, IT major Satyam Computer Services Limited (SCSL) has decided to float a separate subsidiary for its entry into the Business Process Outsourcing (BPO) space.

Announcing this at a press conference, Satyam chairman B Ramalinga Raju said that after careful evaluation over the past few months, a decision had been taken at the board meeting on Wednesday to enter the BPO space through a separate subsidiary company.

“We have not drawn up any specific plan at this juncture. We are working on them. We have a number of options including seeking an expert opinion on the issue or bringing in our existing clients to become our partners,” Raju said. “It is only a matter of time before we float a company for the BPO space,” he added.

“The BPO space holds a major opportunity. Customers are looking for total integrated solutions with high quality services. We have a capability to provide the services in an integrated fashion,” Raju said.

Satyam had taken the initiative two years ago to jointly develop a quality model along with the Carnegie Mellon University (CMU) called eSCM.

Five-point Strategy To Face Competition

Satyam Computer Services Ltd has evolved a five-point strategy which will enable the company to compete better with global players and ensure growth with profitability. These are:
focus on five verticals - automotive, banking and financial services, insurance, healthcare, manufacturing and telecom;
strengthening offerings in enterprise solutions, IT outsourcing, network and systems, hi-tech solutions and engineering services;
providing strong regional focus in existing and emerging markets;
emphasis on business solutions founded on both domain and technology competencies; and
maintaining a higher level of customer intimacy through proven relationship management processes.
Satyam has also developed a six-sigma model ‘I-Strive’ for improvement of its business and support processes.

Simultaneously, Satyam moved a significant number of support services into a Virtual Delivery platform, Raju said.

Strong existing customer relationships, established process and international brand image would potentially help reap rich benefits in the BPO space. Initial service offerings will be in the financial back office processes, transaction processing and customer contact help desk services, Raju added. “We are in the process of developing certain tools which can be introduced in the near future,” Raju said. “Our endeavour is to get into the BPO at the earliest,” he added.