SATYAM COMPUTER
SERVICES LIMITED
Satyam is a global IT consulting and services
company with activities spanning 53 countries.
Background
Satyam Computer Services Limited (Satyam) was
incorporated in 1987 in Hyderabad (Andhra
Pradesh) by B. Ramalinga Raju and is a leading
global IT consulting and services company. In short
span of time, the company has moved from mere
domestic IT services company to global IT
consulting by spreading its wings to over 55
countries spanning 6 continents. Currently, it has
around 30,000 dedicated and highly skilled IT
professionals, working in development centres in
India, USA, UK, UAE, Canada, Hungary, Singapore,
Malaysia, China, Japan and Australia and serving
over 500 global companies, including over 156
Fortune 500 corporations.
Company Products Established
Satyam IT Services 1989
Computer
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Satyam’s growth has been marked by well-
orchestrated strategy focussing on alliance and
market. It started with an offshore software project
of John Deere & Company, its first Fortune 500
client, way back in 1991. It formed a joint venture
with Dun & Bradstreet in 1993, entered Enterprise
Solutions in 1996, formed a joint venture with GE
in 1998 and with Computer Associates in 2000 and
entered into an Memorandum of Understanding
with Microsoft to provide IT outsourcing services.
Over the years, the company has nurtured over 80
technology and marketing tie-ups to provide end-
to-end services to customers. In addition, the
company has been focussing on other vectors of
growth – domain, technology, business model that
allows the company to leverage local competencies
to offer global competitiveness to their customers.
The process of going global was given a siginificant
boost when in September 1999, Satyam Infoway
(Sify), the internet subsidiary of Satyam Computers
made a debut on the Nasdaq.This was followed by
a equally successful listing of the shares of Satyam
Computers on NYSE in May 2001. Satyam divested
its entire shareholding in Sify in 2005-06.
In terms of shareholding pattern, the Indian
promoters hold currently around 14.4 per cent of
the shares. Other shareholders include foreign
Founder Distribution Production plants
B. Ramalinga Raju 55 countries across NA
Americas, Europe,
Middle East,
Asia Pacific, Africa
institutions with 53.6 per cent and an ADR holding
of about 19.9 per cent. Domestic financial
institutions and mutual funds together hold another
5.49 per cent shares of the company. Public and
others category hold around 4.09 per cent shares.
Finally, the rest of the 1.19 per cent shares are with
non-promoter corporates.
Products and services
Satyam's current portfolio of products and
solutions include software development, business
intelligence and data warehousing, consulting and
enterprise solutions, embedded systems,
engineering solutions, enterprise resources planning
applications solutions, geographic information
system solutions, enterprise infrastructure
solutions, and enterprise storage solutions.The
company also provides BPO and network-enabled
services. Currently, the company provides services
to customers from various vertical industries
including Aerospace and Defence, Automotive,
Banking and Financial Services, Energy and Utility,
Government, Healthcare, Insurance, Manufacturing,
Retail,Telecom, Infrastructure, Media and
Entertainment, Semiconductors and Travel &
Transportation.
The products and services of the company can be
broadly grouped into 2 segments – IT services and
BPO. IT Services include application development
and maintenance, consulting and enterprise
business solutions, extended engineering solutions,
and infrastructure management services. BPO
provides services in the area of Human Resources,
Finance and Accounting and Customer Care
spanning healthcare, banking and financial services,
transportation, tourism, manufacturing, automotive,
telecom, media and utility services etc.
Financial analysis
The company has achieved robust financial
performance through well-orchestrated market,
customer, product, and alliance strategy. Revenues
have increased from USD 89 million in 1999 to
USD 793 million in 2005 at CAGR of 44.67 per
cent. IT services contribute to over 98 per cent
and remaining from BPO operations. Over the last
few years there has been an increasing revenue
generation from consulting and enterprise business
solutions, thus exhibiting an increasing thrust on
value added services. North America contributes to
over 68 per cent of revenue, while Europe’s
contribution has increased from 11.6 per cent in
2003 to 16.6 per cent in 2005. Asia Pacific has also
exhibited strong growth and currently contributes
close to 13 per cent of the company’s revenues.
The net profit of Satyam increased from USD 17
million in 1999 to USD 172 million in 2005, a
CAGR of 47 per cent. However, its margins have
been falling over the years mainly on account of
increase in employee costs, which constitute nearly
70 per cent of the company’s total expenses.The
company exhibits high return on net worth and
capital employed at 25.9 per cent and 29.9 per cent
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 respectively. It has managed to reduce its debt
burden to almost negligible in the last few years.
The robust financial performance is primarily due
to favourable demand environment and more
importantly, their ability to capitalise on available
opportunities through superior relationship
management and enhanced breadth of service
offerings.
Satyam’s contribution in making ‘Made
in India” global
Satyam's network spans 55 countries, servicing
over 489 global companies, including 156 Fortune
500 corporations. Satyam is fast progressing to an
organisation that establishes real business
partnerships across all levels of the customer’s
organisation. Among Satyam’s global customer base
are:
• 8 of the top 10 automotive companies
• 6 of the top 10 pharmaceutical companies
• 7 of the top 10 electronics and electrical
equipment companies
• 4 of the top 5 networking and communication
equipment companies
• 3 of the top 5 healthcare companies
• 2 of the top 4 securities companies
Satyam’s strategic alliances with over 50 global
technology leaders are multi-dimensional, wherein,
Satyam uses the technology, goes to market with
Global presence
these technology leaders, or provides services
based on their technologies.
To sustain its growth and value realisation, the
company has identified certain key focus areas.
Until about a year ago, Satyam’s revenues were
largely dependent on the US market. In the past
year or so, this has changed significantly, wherein
almost 30 per cent of Satyam’s revenues came from
markets outside the US. Europe and Asia Pacific
regions are now a critical component of Satyam's
global strategy.The company is looking at an
aggressive growth rate and a drive towards regional
investment in these areas.
In 2005-06, Satyam acquired UK’s Citisoft, a highly
specialised business and systems consulting firm
with focus on investment management for USD 23
million. Citisoft has a multi-national operating
presence in London, Boston and New York.The
company will operate as a subsidiary of Satyam and
will be a part of Satyam's financial services group
(FSG).The acquisition would help Satyam build a
global footprint in the financial services sector.
In the same year, the Company also acquired
Singapore based Knowledge Dynamics, a leading
Data warehousing and Business Intelligence
solutions provider, with significant presence in the
ASEAN ergion.

America Asia-Pacific Europe Africa Middle East

USA Hongkong Basingstroke South Africa Dubai

Canada Korea Belgium Mauritius
Brazil Malaysia France
Singapore Germany
Taiwan Hungry
Thailand Ireland
Australia Italy
China Netherlands
India Spain
Japan Sweden
New Zealand Switzerland
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Factors fuelling Satyam’s global
initiatives
Several factors have driven Satyam’s global initiatives.
• Dominance in CEBS Space: Satyam’s
consulting and enterprise business solutions help
customers optimise their operating costs,
enhance the efficiency of their business
processes and improve their overall
competitiveness.These solutions span the
development, implementation, integration and
maintenance of various enterprise-wide
applications. Over the past few years, the
company has made strategic investments to
augment its capabilities in this area, which is
reflected in the growing revenues from this
business. During fiscal 2005 and 2004, 34.3 per
cent and 31.8 per cent respectively of Satyam’s
revenues was generated from consulting and
enterprise solutions.
• Alliances with strong global brands: Satyam
offers a wide range of IT solutions to meet
today's complex business challenges, enabled by
strategic alliances with technology vendors and
system integrators.Through these partnerships
they are able to deliver industry-best end-to-end
solutions to their customers. Satyam has
partnered with best-of-breed technology
providers like Microsoft, SAP, Oracle etc in the
solution areas of ERP, supply chain management,
customer relationship management, data
warehousing and business intelligence, enterprise
information portals, enterprise application
integration, knowledge management and e-
Procurement and marketplaces. While the
alliance partner provides the software
application, Satyam offers professional services,
including business process consulting, systems
integration, custom application development,
content development and other consulting and
implementation expertise.
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 • Derisked Business Portfolio: Satyam has a
revenue contribution of 27 per cent from its top
5 customers reducing it from the levels of 43 per
cent. Similarly revenue contribution from top ten
customers have reduced from about 56 per cent
to about 41 per cent. Moreover revenues
generated from customers from Europe have
shown the highest growth and have moved from
23 per cent to about 31 per cent.
• Nearshore Centers: We have developed near
shore centers in Canada, Hungary and China to
service customers in United States, Europe and
Japan respectively.These near shore centers
leverage their proximity to the customers and
offer an added advantage of being in the same
time zone as the customers. Further, majority of
our associates in these centers are local staff
who have an added advantage of bilingual skills
and their cultures closely match those of the
countries whom we intend to service from these
centers.The centers are particularly useful when
developing prototypes for the customers since
prototypes typically involve a high level of
interaction with the customer and near shore
centers facilitate quick turnaround times.
• Knowledge Management: Satyam's
Knowledge Initiative, apart from managing the
existing knowledge resources of the Company,
also fosters a culture of creating and sharing
knowledge across the organisation. Associates
have access to a query-based knowledge
management system-the Knowledge Repository
that allows them to gain the advantage of
collective experience, thus optimising their own
time on activities that build upon rather than
repeat this experience.
• Quality: At Satyam, quality is a culture,
expressed in the way employees interact with
and cater to the needs of their customers, and in
the products and processes they deliver to them.
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It has an internal support unit under Corporate
Quality Circle known as Total Quality Assurance,
which takes care of all the Software Quality
assurance activities in the projects. Under the
guidance of senior Quality associates in TQA,
Quality Mentors are deputed in each project.
They work with projects and facilitate the
implementation of the Quality Management
System. Other Quality initiatives like Six Sigma,
Business Continuity & Information Security
strengthen Satyam’s commitment to delivery
excellence.
• Full Life Cycle Leadership: Satyam recognises
that in order to succeed in today’s business
environment it needs to possess a repertoire of
diverse industry experience and more
importantly a deeper understanding of services
required in these industries such experience and
understanding requires leadership. Satyam has
made full life cycle leadership one of its strategic
imperatives wherein it defines leaders as those
who can identify value-creating opportunities and
treat them like complete businesses in
themselves and can assume end-to-end
responsibility for every opportunity and
ultimately delivering real value to customers.
• People Power: To reflect its true global outlook
S atyam aspires to be an employer of choice
across geographies. Its ability to attract and
retain the best talent has been phenomenal. It
 maintains diversity in its workforce through
specialised programs.The company believes in
employee engagement rather than employee
management, allowing every Associate to rise to
her or his level of potential.The diversity in
people addition in the recent past is a reflection
of the opportunities being addressed by the
company across various sectors and regions.
Future plans
and analytics are expanding across verticals such as
banking and financial services, telecom,
pharmaceuticals and drug discovery.
Satyam has joined the billion dollar club in FY 2005
– 06 and is the youngest IT company till date, to do
so.The company is gearing up for continued growth
and opportunity to enhance its global footprint and
client-based services.

Satyam's ability to identify, nurture and accelerate

growth in new business practices has helped to
create a global footprint in the ventured areas. For
instance, new verticals such as Healthcare, Retail
and Transportation - in which the company has
invested significant resources over the last few year
has contributed to around 11 per cent of Satyam's
revenue. Even within the traditional stronghold
verticals, Satyam continues to increase its service
offerings. Over the last three years, the breadth of
services provided by the Telecom Infrastructure
Media & Entertainment Semiconductor (TIMES)
vertical was increased to accelerate the revenue
growth from the equipment manufacturers
segment.This expansion of services played a major
role in increasing the revenue contribution of this
vertical and Satyam expects it to unfold greater
opportunities in the future. On the service front,
the increasing portfolio of high-value services led
to strengthening of Satyam’s dominance in Globalisation at a glance
Enterprise Business Solutions. • Presence in 55 countries across the globe
• Revenues outside India comprise 87 per cent
Inorganic growth, as a means to accelerate domain of total revenues
competency and to expand the services as well as • Clients include 489 global companies, including
customer-reach, is a key objective of Satyam's long- 156 Fortune 500 corporations
term growth plan. • Alliances with over 50 business and technology
leaders
For fiscal 2006, Satyam is eyeing key consulting • 23 development centres across Australia, Canada,
opportunities in business intelligence and analytics. China, Hungary, India, Japan, Malaysia, Singapore,
It plans to expand the scope of offerings to UAE, UK, USA
knowledge process outsourcing as an extension of
its data warehouse solutions. Business intelligence www.satyam.com
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