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Satyam to invest big in key verticals, eyes new markets

08 Jun 2010 Evaluate

With just over a fortnight left for Mahindra Satyam’s audited results to be announced, the company’s top brass is charting investments to build capabilities in competencies and foray in to newer geographies. The quantum of investment was not specified as Satyam cannot reveal its financials till the results are declared to the stock exchanges. To achieve desired levels of growth, Satyam hopes to piggy back on its parent, Tech Mahindra’s ability to bag government contracts. Tech Mahindra and Mahindra Satyam may also jointly offer services to clients by combining capabilities of the two firms, according to sources.

Newer markets such as Japan, Brazil and other Latin American regions will be looked at as IT companies see great demand for offshore services in these regions. The company intends to invest extensively in key verticals that contribute sizeable revenue to Satyam such as telecom, manufacturing, banking financial services and insurance and health care.

A senior IT-Business Process Outsourcing (BPO) analyst from Gartner reckons that technology firms headquartered in India will witness growth two to three times more than market growth because of growing demand from the APAC and Australian countries and Satyam is no exception. The key is to go beyond traditional markets and develop additional services for some verticals in adjacent spaces or verticals where Satyam has already established an equation with its clients. However, business models will have to be tweaked to suit each country’s requirements to ensure business flow in the next 12-18 months.


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Peers
Company Name CMP
TCS 2394.85
Infosys 1179.20
HCL Tech. 1198.60
Wipro 197.95
Tech Mahindra 1463.05
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