HYDERABAD: Satyam Computer Services Ltd lined up a host of expansion plans to intensify its activities. In the offing are its global expansion plans, in South America and Eastern Europe. ``We expect to expand in South America which is a good market for us. We are looking at increasing the number of development centres. We plan to expand in Eastern Europe as well,'' revealed B Ramalinga Raju, chairman and founder, Satyam Computer Services Limited. Some of the centres in these locations can be used as a tool to fuel Satyam's offshore business that would come from neighbouring locations, according to Raju. European operations contribute to 18 per cent of Satyam's total revenue while Asia Pacific fetches 15-16 per cent. On the domestic front, Satyam would look to have operations in Tier 2 cities. ``We will be adding some Tier 2 centres. Our Vizag centre is under construction and will become operational very soon,'' said Raju. Looking forward, Banking, Financial Services and Insurance business would continue as growth areas for the company. The vertical contributed 29.65 per cent in the quarter ended June 30. ``Banking, Financial and Insurance continue to give value to Satyam,'' said Ram Myanpati, president, Healthcare and Businesses. Inorganic growth too would continue to be one of the focus areas for the Hyderabad-based company. ``We will continue to look for acquisitions. We have significant plans for it. But we will do it progressively,'' stated Raju. One of the factors that stimulated the revenue growth, according to the company is higher contribution from offshore. It can be noted that offshore contribution has been increasing every quarter. Offshore contribution which was at 44.34 percent in FY 06, stood at 47.17 in the quarter ended June 30. However, Myanpati felt that the current trend does not give a picture of difference between offshore and onsite businesses. ``Customers are looking at accountability. The present trend does not differentiate between offshore and onsite,'' said Myanpati. Satyam's subsidiaries continue to make losses. But chief financial officer Srinivas Vadlamani is not too bothered. ``Some of them are in investment stage and some have stabilized. At this point it's not much of an issue. They won't bring down our consolidated margin. We expect Nipuna to perform better than last year,'' said Vadlamani. © CyberMedia News
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