In a bid to increase its revenues from SAP operations, IT major Satyam Computer Services is now focussing on other geographies besides the US. The consulting and enterprise solution contributes about 45% of Satyam’s revenues of the Rs 8,474 crore in FY08.
SAP has a major share in the consulting and enterprise solutions segment. Currently, about 48% of SAP’s revenues come from the US, Europe contributes 33%, while the rest of the geographies contribute the remaining. In the coming two years, the company expects these ratios to change where the other geographies will contribute substantially bigger shares of revenue. Manish Mehta, director, senior vice president and global head, SAP/Testing Practices, Satyam Computer Services, told FE, “The US contributes the maximum share of about 48% of SAP revenues and will continue to be our major focus area. But in the coming year, we are expecting less business to come from the US as compared to last year. We are not expecting new clients from the US and we will be leveraging on our existing client base.” He adds, “But we are keenly looking at adding new client base from other geographies like BRIC, Eastern Europe, Latin America, and especially the Middle East.
We are expecting about 15% of our SAP revenues to come from the Middle East in about two years”
Satyam currently has about 160 clients and expects to add about 40 more clients in the SAP vertical in the coming year. In the Middle East, the company has a presence in Dubai, Saudi Arabia, Kuwait, Qatar, Abu Dhabi, Oman, Bahrain, and Jordan. Satyam will hire about 10,000 people in the coming two years, of which about 2,000 will be placed across China, Egypt, Malaysia, Hungary, and Brazil.
Currently, Satyam is the fifth largest global player in SAP services and with a focus on larger geographies. The company is targeting to become the third largest global player. Mehta adds, “We are currently the fifth largest player but two years down the line, we aim to be the third.”