Satyam to expand China operations

Satyam Computer Services has announced plans to set up operations in Guangzhou, China. An agreement to this effect was signed in Bangalore in the presence of Zhang Guangning, mayor of Guangzhou, and B Rama Raju, co-founder and managing director of Satyam.

According to a media statement, Murali V, senior vice-president, commercial, Satyam, said, "Satyam has plans to increase its presence significantly in China. We are encouraged by the support that we are receiving from several provinces in China and are only too pleased to further expand our presence. The setting up of the operations centre, though in a small manner, is the first step before we set up a large development centre in China."

"Satyam in China is strategic to our Asia Pacific operations as it helps address our global customers based in China. Being one of the first Indian organisations to enter China, Satyam has grown its presence in China to 250 associates across Shanghai, Dalian and Beijing," Virender Aggarwal, director and senior vice-president (Asia Pacific, Middle East, India and Africa), Satyam said.

Satyam will compete in China with TCS and Infosys, besides US outsourcing specialist BearingPoint. Microsoft Corp and Sun Microsystems are also developing software labs in China.

Tata Consultancy has a subsidiary in China and owns a majority stake in a joint venture with Microsoft and China's Uniware Co. and two local Chinese firms.

Infosys has a unit in Shanghai and one in Hangzhou, which together will eventually house 6,000 engineers.

China's exports in software and back-office services total less than a fifth of India's $17.2 billion, but it is boosting English-language skills in schools to help mount a challenge to the software campuses of Bangalore.