Satyam blueprint to take on majors

Satyam Computer Services Ltd (Satyam) is planning on taking the battle to consulting majors such as Capgemini, IBM and EDS who are developing maturity in offering both consulting and integration services.

It plans to do so by leveraging partnerships with organisations such as the Indian Institute Technology (IIT), Madras, to develop intellectual property and offer end-to-end value-added solutions.

"The threat to the leadership position of Indian IT companies is real as the big five consulting majors after setting up operations here are moving down the value chain to offer development and integration services. They have no maturity as of now but will acquire that soon," said Subu D Subramanian, director and senior VP, head- strategic business unit (SBU) manufacturing, energy, utility and automotive, Satyam.

The company plans on strengthening its global virtual delivery shop model with the setting up of the proposed 100-acre campus type development centre in Chennai.

"We will then be able to utilise our manpower optimally as all our delivery centres will be connected allowing us for example to do our testing in China and design in Chennai," added Subramanian.

Satyam's concern is well founded as in the past two years, the Indian companies which were leaders in the ITES space have been replaced by MNCs like WNS, IBM and Convergys.

"We can use IIT and also put in more of our own resources to reduce the time spent on building delivery models, whereas companies like Accenture need to use professionals from Stanford and Massachusetts Information Technology (MIT) to produce similar results," pointed out Subramanian.

The facility in Chennai will house both IT services professionals and employees of Nipuna Services Ltd-Satyam's ITES outfit.

"Having them both under the same roof may pose a HR problem but the lessons learned from ITES operations could be used to design solutions for clients that would increase employee productivity, reduce costs and drive up sales," remarked Subramanian.

At present Satyam's ITES operations concentrate on the high-end of the spectrum, but going forward it plans on taking total ownership of complete business processes and running them.

Satyam is also trying to lure Indian software professionals currently working abroad by creating a living and working infrastructure that they are used to abroad in the campus style Chenai facility.

"There is a dearth of change management consultants and domain experts who constitute just 5 per cent of the organsiation but account for deals in excess of $500 million. We want to attract Indian professionals working abroad by providing them with the same if not better facilities here," predicted Subramanian.

B Ramalinga Raju, chairman, Satyam had met Selvi J Jayalailthaa, chief minister, Tamil Nadu earlier about plans to develop a 100-acre campus style facility and employ about 15,000 professionals there.