Satyam,
World's No 2
Outsourcing
Vendor
The Brown-Wilson Group has ranked Satyam Computer Services Ltd, based in the southern Indian city of Hyderabad, as the number two outsourcing vendor globally in its annual survey of over 870 IT and ITeS companies worldwide for 2006. In 2005 Satyam ranked 19. This year, Satyam also figured as the leading Indian provider.
The Brown-Wilson survey analysed 872 outsourcing vendors in 63 countries. Its results will appear in the Black Book of Outsourcing, a renowned and highly endorsed publication. The survey measured CEO commitment, human capital performance, corporate direction and leadership impact. Other factors included management performance, client and employee satisfaction, and organizational excellence. Satyam's overall score was 93.4 (out of 100).
"Outsourcing experts have a great deal of respect for The Brown-Wilson Group, and its list and to be placed in the top two is a tribute to our superior team of executives, as well the remarkable and talented people they manage," said B Ramalinga Raju, founder and chairman, Computer Services Ltd. "This achievement underscores the fact that the world recognizes our organization's commitment to excellence. It also reinforces our stakeholders' confidence in our capabilities," he added
Raju said, "This recognition brings with it an additional responsibility to create added business value to maintain our leadership position. We will continue with our efforts of delivering excellence to all our stakeholders.



Satyam Joins $ One Billion Club
Satyam Computer Services, the last of the frontline technology companies to announce results, came out with numbers, which met market expectations. During the year 2005-06, Satyam crossed the $1 billion mark in revenues. Satyam is the fourth Indian IT services company after TCS, Infosys and Wipro to cross $1 billion in revenues.
The company has posted a net profit of Rs 1,239.75 crore for the year ended March 31, 2006 (FY 05-06) as compared to Rs 750.26 crore for the year ended March 31, 2005 (FY 04-05). Total income has increased from Rs 3,546.78 crore in FY 04-05 to Rs 5,012.22 crore for FY 05-06.
The profit after taxation and share of loss in associate company & minority interest as per Indian GAAP is Rs 1,141.73 crore for the year ended March 31, 2006 (FY 05 -06) as compared to Rs 711.64 crore for the year ended March 31, 2005 (FY 04 - 05). Total income has increased from Rs 3,607.67 crore in FY 04 - 05 to Rs 5,125.84 crore for the year ended FY 05 - 06.
A final dividend of 250 per cent (Rs 5 per share on a par value of Rs 2 per share) has been recommended at the board meeting, subject to the approval of the shareholders. The total dividend recommended for the year is 350 per cent (Rs 7 per share on a par value of Rs 2 per share), including interim dividend of 100 per cent (Rs 2 per share on a par value of Rs 2 per share).



Operations in Hungary
The BPO subsidiary of the Satyam group, Nipuna Services is poised to set up shop in Hungary. This will be Nipuna's third overseas BPO operation as it already has a sizeable presence in the US and the UK.
Nipuna decided to enter Hungary as it had clients in the country as most international companies are settling for Indian BPO vendors with multilingual expertise in delivering solutions across a number of industry verticals.
Nipuna CEO Venkatesh Roddam said: "Nipuna is actively looking to service its international clients out of Hungary. Our parent company Satyam Computers already has a 90-member team operating in Budapest and we intend working closely with Satyam Computers as part of our global go-to-markets strategy, wherein Nipuna's sales/BPO experts work alongside Satyam's overseas software professionals and pitch for international client projects on location."
At present, Nipuna offers BPO solutions in four core verticals, including telecoms, manufacturing, healthcare/insurance and banking-financial services.
Q1 profit up 75 percent
Satyam has reported an increase of 74.76 per cent in its profit after taxation to Rs 360.09 crore for the first quarter ended June 30 from Rs 206.05 crore reported for the corresponding period a year ago.
The total income of Satyam, which has operations in China, UK and Australia, stood at Rs 1,461.24 crore, up 38.14 per cent from Rs 1,057.82 crore reported for the same period last year.
The software exporting firm's profit before interest, depreciation and taxation for the reporting quarter was Rs 430.03 crore, up 57.60 per cent from Rs 272.86 crore reported during the corresponding quarter a year ago
Income from exporting services was Rs 1,332.42 crore compared to Rs 1,001.73 crore reported for the quarter ended June 30, 2005. The domestic market contributed Rs 54.44 crore, up 66.43 per cent from Rs 32.71 crore reported for the year-ago quarter.
“The result is more than the forecast. The growth continues to be broad-based across verticals and services. The revenue growth was a result of a 7.2 per cent increase in volumes and higher contribution from offshore,” said B Ramalinga Raju, founder and chairman, Satyam.
Satyam's revenue guidance for Q2 was Rs 1,521 to 1,524 crore with an EPS of between Rs 8.83 and Rs 8.87. “We are revising our annual guidance for the fiscal 2007. Revenue is expected to grow in the range of 29.2 - 31.2 percent and EPS is expected to increase in the range of 27.5 29.5 per cent,” Raju added
The company added 34 new clients during Q1, taking the total to 489. The company hired 1,123 more associates during the last three months to take the total manpower strength to 27,634.
During the June, 30-ended quarter, the company allotted 18,60,502 equity shares of Rs 2 each, consequent to exercise of stock options by its associates.