Business

Satyam to tap mid-sized companies in Nordic region

WIESBADEN (GERMANY): India’s fourth largest software exporter Satyam Computer Services is targeting 30 per cent of its total global revenue from Europe by 2009-10, according to Drs Peter M. Heij, Head of Satyam’s Continental Europe.

“Growth from Europe would come from more acquisitions and by venturing into new markets such as the Nordic countries and Eastern Europe,” he said.

Talking to the visiting Indian journalists, Mr. Heij said the company was seriously trying to tap the mid-sized companies in these regions which have 5-50 million euro in revenue.

The company was hopeful of bagging two $100 million plus contracts besides another 30 contracts worth $10 million each by 2009-10 from Europe.

Mr. Heij said Satyam had been investing carefully and at the right places. The company would be seeing higher growth in project-based services and infrastructure-related outsourcing in Germany. It also saw large opportunities in France and Russia, he added.

Aloke Palsikar, Central Europe Head, said despite the global financial meltdown, the outsourcing market in Europe, particularly in Germany and France, was expected to increase. In the present scenario, the company saw more opportunities than challenges in the European markets. Mr. Palsikar said though the U.K. market continued to dominate, there was every probability that the ratio would change.

It was hoped that its share together with Ireland would come down from 52 per cent to 40 per cent, while that of Continental Europe would increase from 48 per cent to 60 per cent over the next two years. In the second quarter of the current fiscal, Europe contributed 20.60 per cent of Satyam’s total revenue of $652 million. The U.S. market had a share of 62 per cent. The company started its European operations in 1997 and at present it has branches in 13 countries. Its three development centres in the U.K., Germany and Hungary serve over 160 active customers in Europe.

Mr. Palsikar said that Satyam aimed to provide the preferred near-shore option for European companies.

It wanted to leverage strategic initiatives such as nurturing global accounts in the region, consultative and solution-based selling and forming alliances with local technology and business partners.

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