Satyam Computers: Growing From Strength To Strength

Satyam Computers has definitely grown from strength to strength. It is one of the first IT companies to become a private ISP and acquire a Nasdaq listing. The change in the vision envisaged by Raju is very evident from the way he has positioned his company–to be a global player with local flavor. 

Constant and steady growth have been the hallmarks of this company and if one goes by the third quarter (Q3) results of this fiscal, Satyam Computers has equaled Infosys in ace performance. An interesting factor to note is that Satyam has been able to replace Y2K and legacy revenues with internet and

ecommerce projects. Y2K was less than 1%, while ecommerce projects made up 21.3% during the Q3. It posted a net profit of Rs36.19 crore, an increase of 75.45% over the corresponding period during the last fiscal. The turnover of the company also rose by 62.33% over the corresponding period of the previous fiscal. 

Satyam, like the other software majors, has sustained its strength in retaining old customers as well as roping in new customers. The last quarter was no different and Satyam has been able to add major customers like cable and wireless, Emirates Airlines, hsupply.com among others. Moreover, it also entered into a 50:50 JV with Venture Industries Global Engineering LLC to set up a Satyam Venture Engineering Services Pvt Ltd. This JV is to offer CAD/CAM solutions to the automotive industry worldwide.

Satyam has been able to quickly adapt to the changes of the market and this can be gauged from the fact that about 30% of its total revenues come from the high-end solutions business. Moreover, with business from new customers reaching an all-time high of 36% during Q3, the company’s revenue mix seems to have become more broad-based. North America continued to be its main source of revenue, with 79.4% of the total revenue coming from that region, while Europe accounted for 7.2%. The telecom sector is the other area where Satyam has been able to consolidate its position. Telecom accounted for 11.8% of the total revenue during Q3. This has been possible due to the company’s

investments in embedded systems, ecommerce and mobile internet applications along with exploring new markets making significant inroads into Africa. The company further enhanced its field sales team to address the new customer business sector in the US, UK and Japan. It also started a new initiative–Strategic Relationship Management Program to enhance its relationship with its key customers. 

It is evident that Ramalinga Raju has come a long way from being the head of a domestic software company, to sharing a place with tomorrow’s ebiz visionaries.