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Satyam targets 10% share in engineering services segment

Satyam targets 10% share in engineering services segment


New Delhi: Country’s fourth largest software exporter Satyam Computer aims to be among the top two engineering services providers and corner a marketshare of 10% by 2012, a senior official of the company said.

“Satyam has a vision to be among the top two engineering services providers globally and reach a 10 per cent marketshare by 2012," Satyam Computer’s head of Integrated Engineering Services, T S K Murthy, told PTI.

In 2007, out of the total global service revenue of $2 billion, the revenue of R&D and product engineering services was $175 million, representing 9% of the total revenue.

The share of the R&D and product engineering services in the total revenue is expected to grow significantly, according to infotech analyst firm IDC India.

The analyst firm sees the division having great potential for Satyam to bolster its revenue. It, however, says this vision translates into overhauling the IT major’s current growth rate of over 40% for the next five years.

IDC India said Satyam has put in place strategy to carry out this vision that include strong focus on select verticals like aerospace, automotive, consumer electronics, semiconductors and farm equipment.

As part of that move, the company is focusing on geographies like the US, Germany, France, Japan and the UK. The other key strategy is positioning the company as a leading engineering service provider.

Action plan

Satyam’s action plan is to build domain expertise organically and inorganically and invest in R&D labs, testing facilities.

It also has plans to establish front offices in the US, Japan, UK, Germany and France besides setting up delivery footprint in China, Malaysia, Brazil and Hungary, IDC India said.

The analyst firm also said Satyam is building a portfolio of key clients in manufacturing and high-end verticals with service offerings like IT solutions, engineering services, embedded solutions, BPO and manufacturing operations support.

Manufacturing and high-tech verticals fetch about 40% of Satyam’s revenue. R&D and product engineering services form a major share of the services to these clients.

“Satyam foresees additional opportunity to tap the R&D budgets of its clients apart from the IT budgets. Engineering solutions and infrastructure management services are chosen as the two-high areas for the next three years, the analyst firm said.

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