Satyam set to clinch deals worth $200 mn

The engineering services division of Hyderabad-based Satyam Computer Services is set to clinch deals worth $150-200 million (between Rs 600 crore and Rs 800 crore).

Last week, the company bagged four major deals in Singapore, Australia and the UAE. The deals are cumulatively worth $70-75 million.

"We see aerospace, high-tech telecom, automotive and industrial manufacturing as the fastest and dominant growing sectors. Besides, with task-based projects transforming into programme-based projects, the deal sizes in this space are getting bigger at between $20 million and $40 million each," said T S K Murthy, head (integrated engineering solutions), Satyam.

According to him, eight deals in the engineering services sector "" each ranging from $20 million to $25 million "" are in the pipeline. "The deals are at various stages of maturity. A few of them may be wrapped up by the current financial year-end," he added.

The division, Murthy said, was also planning to invest around $5 million in the next three years in building centres of excellence (CoEs) and appropriate infrastructure. "As part of this, an electromechanical lab will come up in Hyderabad and Bangalore," he said.

The engineering services division is also set to double its headcount. The division contributed 7 per cent to the total revenues of Satyam in the last financial year and accounted for 7.2 per cent during the first quarter of the current year.

The company expects the division to add double-digit growth to the company's top line during the current financial year, he said.

A Booz-Nasscom study conducted in 2006 indicated that the global offshoring of engineering services to be a Rs $200-billion opportunity by 2020.

"With its inherent talent pool and the growing automotive and aeroplane markets in India, the country could capture 25 per cent of this," Vikas Sehgal, partner, Booz Allen Hamilton, Chicago, said.