Satyam to set up facility at Vizag

Chairman Ramalinga Raju says that company is no more solely dependent on the US

HYDERABAD: Hyderabad-based Satyam Computer Services announced that it would soon expand its operations in Vizag in Andhra Pradesh. The announcement of Satyam's expansion plans, which was jointly made by chief minister Dr YS Rajashekara Reddy and Satyam chairman Ramalinga Raju, drives home the fact that Vizag is projected to be the second best IT destination in Andhra Pradesh.

Addressing the media, Raju said, "We had planned on setting up a facility in Vizag in early 2000. But the slowdown of the IT sector deterred its fruitation. With the revival of the industry, many other state governments are inviting us to set up facilities in other cities. But we chose to expand our presence in this city of Vizag because of the enormous talent that the city boasts of."

However, the company refused to divulge any concrete details on the size of the investment and the recruitment patterns of the proposed facility stating that the negotiations with the state government on allotment of land are in the preliminary stages. "The proposed facility in Vizag is going to be a significant one and will be a stepping stone to expand our business in the Asia Pacific region," added Raju.

"Earlier most of our company's revenues were dependent on the US and North America contributing more than 80 percent. But now, this has come down to 65 percent, not because of business in US and North America is declining, but because business from other regions like Europe and Asia Pacific are increasing," he explained.

"The state government will provide all support including quality power, water, connectivity and above all a congenial atmosphere for companies to set up their facilities in cities like Vizag. With Satyam entering the city and two more companies that would soon announce their plans for setting up the facilities in Vizag, the city will surely be the next IT destination in the state," said Dr Reddy.