Satyam to expand in Latin America, E Europe   

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.






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