Satyam targets 10 percent market share in engineering services segment

Bangalore: Satyam Computers, India's fourth largest IT company is now looking to be among the top two engineering service providers and capture a market share of 10 percent by 2012. As part of this vision, the company plans to focus on select verticals like aerospace, automotive, consumer electronics, semiconductors and farm equipment.

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Satyam is also concentrating attention towards geographies like U.S., Germany, France, Japan and UK. The other key strategy is positioning the company as a leading engineering service provider.

The revenue of R&D and product engineering services was 175 million out of total global service revenue of $2 billion, in 2007, representing 9 percent of the total revenue.

IDC India, Infotech analyst firm, sees that there would be a significant growth in the share of the R&D and product engineering to the total revenue.

According to IDC, the division has great potential for Satyam to bolster its revenue. It, however, says this vision translates into overhauling the IT major's current growth rate of over 40 percent for the next five years.

Satyam's action plan is to build domain expertise organically and inorganically and invest in R&D labs, testing facilities. "It also planning to establish front offices in US, Japan, UK, Germany and France besides setting up delivery footprint in China, Malaysia, Brazil and Hungary," IDC India said.

IDS also pointed out that Satyam is building a portfolio of key clients in manufacturing and high-end verticals with service offering like IT solutions, engineering services, embedded solutions, BPO and manufacturing operations support.

"Satyam foresees additional opportunity to tap the R&D budgets of its clients apart from the IT budgets. Engineering solutions and infrastructure management services are chosen as the two-high areas for the next three years," said IDC.