Satyam bags outsourcing contracts worth $75 m

HYDERABAD: Satyam Computer Services Ltd has bagged four outsourcing contracts aggregating to $70-75 million in Singapore, the United Arab Emirates and Australia.

 “While the size of the deal is not too significant for a company like Satyam, we are excited about our increasing presence in Singapore and West Asian markets. The deals are also in line with our strategy to reduce dependency on the US market by increasing business in Europe and other parts of the world, including West Asia ,” Virender Aggarwal, Director and Senior Vice-President (Asia Pacific and Middle East), Satyam, told newspersons in a tele conference. The work on two contracts had already begun and the rest would come into force in August, he added.

 On the renewal of the contracts after six years, Aggarwal said they could be extended. “There is no anti-incumbency factor in IT industry and the clients generally tend to extend them to the same vendor,” he added.

The company was also in the process of negotiating a few deals in the Rest of the World (ROW) region consisting of all geographies other than Europe and Americas, he said, adding, “The size of these deals can go up to $2 to $8 million.”

 “We made almost 17 per cent of our revenues from ROW region. The long-term target is to increase this to over 20 per cent. The idea is to bring down the revenue from the US to 50 per cent from current 64 per cent and to generate 50 per cent from Europe and ROW over the next three years,” Aggarwal said.