Business OpportunitiesMahindra Satyam to position itself as ICT company
Mahindra Satyam, the rebranded Satyam Computer Services, is set to position itself as an information and communication technologies (ICT) company.
- Satyam"s virtual pool staff to get no pay after Dec 18 - Indian cities still hot for outsourcing - Mahindra Satyam secures Rs 38 cr order - TechM Q2 net dips 44% - NYSE raps Satyam for not filing annual report - Deloitte may audit Satyam accounts
“Tech Mahindra (the parent company) has unique skills in communications, while Satyam is strong in IT and enterprise services. We are going to the market with a bundled approach to bring in the "C" component to our enterprise customers and we are successfully demonstrating this value preposition with two reference customers,” the company"s chief executive officer, C P Gurnani, told reporters here today during an informal chat.
Gurnani said the company had appointed Bain and Company, the US-based management consultants, to help it in driving some of its processes. That includes better servicing of existing clientele, regaining some lost clients and looking at the value offered to customers. “The company has formed a ‘Win Room’ led by Atul Kanwar (Satyam’s Europe president), who is closely working with Bain,” he added.
Satyam Computers had 500-odd customers; close to 100 dropped their contracts with the then fourth-largest IT outsourcer after the confession by the now-jailed founder, Ramalinga Raju, that he had cooked the company’s accounts for several years.
“We found Satyam pricing to be in line with that of the industry and I don’t think our customers have any reason to question it. Neither have we asked a higher pricing and nor has any customer sought any reduction," Gurnani said.
He said “my lips are sealed, as the company is still in a long silent period till the accounts are restated” on being asked to comment on the New York Stock Exchange (NYSE) saying it would include Satyam in its late filers list and could commence delisting proceedings at any time if circumstances warrant, and on the Satyam-Upaid disparagement case. Adding: “There is no move to delist from the NYSE and we will continue to be listed on the exchange. We are actively in discussion with them (Upaid).”
On the current market scenario, Gurnani said the overall market signs are positive. “We are part of the same pond and the temperature indicators are good.” Terming Australia, China, Egypt, Malaysia and Budapest (Hungary) as cheap destinations, he said the company was intending to expand their operations in these geographies.
After rationalising staff costs, Mahindra Satyam is now focusing on reducing its real estate expenditure. It plans to terminate lease contracts with property owners and consolidate its operations, with its own campuses. Close to 30 per cent of Mahindra Satyam’s office space is unutilised. “We have already moved out of six leased facilities in Hyderabad. We will be closing two leased offices in Bangalore by this month end,” a company spokesperson said.
Satyam’s scrip ended the trade at Rs 109.50 on the Bombay Stock Exchange on Monday, down 1.13 per cent as against the previous close of Rs 110.75.