Satyam Hopes To Hone Edge; Takes Big Names On Board

Hyderabad: | Updated: Jan 24 2003, 05:30am hrs
With a view to tie up loose ends and prepare for the changing trends in the software market, Satyam Computer Services Ltd (SCSL) has decided to sharpen its technology edge through talent infusion both at employee and board level.

We are undertaking a good amount of restructuring of the internal processes to match the best quality parameters in the industry, Satyam chairman B Ramalinga Raju told the media after the board meeting here on Thursday.

The company board has been expanded to accommodate Prof Krishna Palepu and Vinod Dham as additional directors with immediate effect, Mr Raju announced.

Mr Palepu is a professor of business administration at the Harvard Business School and serves as consultant to a variety of companies, while Mr Dham is the CEO of Silicon Spice Inc, engaged in manufacturing communication chips.

Mr Raju expressed the hope that the services of these professionals would improve the overall quality of the company and consequently its performance.

They have promised to attend all board meetings either physically or through video conferencing and offer their guidance, he added.

Mr Raju also said that the company had decided to increase its input cost in tune with the changing market. Though these costs would strain the margins initially, we consider it as future investments, he added.

The company has appointed 30 senior professionals from leading IT global services companies and Big 4 Consulting firms, to improve relationship management and business leadership position in the market. It has also decided to induct about 850 trainees into the company starting from February 2003, in a phased manner.

The BPO subsidiary, Nipuna Services Ltd is set to go on stream in the fourth quarter of current year.

We hope the subsidiary company will start commercial operation from the next quarter, however, we have not added any projections from that business, Mr Raju said.

Nipuna board has inducted Prof Raj Reddy of Carnegie Mellon University and G V Prasad of Dr Reddys Laboratories.

We hope the advice of these senior professionals will help Nipuna to strengthen the operations and increase the customer base, Mr Raju added. The company has already commenced a pilot project for taking over the back-office processes related to assembly line for the engine division of a large US construction equipment manufacturer.

The company is also looking at providing help-desk facility to a large telecommunications information networking software company apart from handling business processes for a US based life insurance company, he added.