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Satyam reduces the number of offices to cut cost
By siliconindia   |   Monday, 01 June 2009, 23:19 IST   |    2 Comments
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Satyam reduces the number of offices to cut cost
New Delhi: In search for options to come out of the mess it is in, Satyam Computers is looking at a new strategy now on the real estate front. In an attempt to save up to Rs 100 crore by the end of the year, the company is planning to terminate the lease contracts for its offices in India. According to a company spokesperson, Satyam is planning to reduce space-related costs in India by more than 20 percent. "It is expected to be done by consolidating operations into a smaller number of buildings and looking at synergy between Satyam, its BPO arm, and Tech Mahindra," said the spokesperson. The company, which was recently acquired by Tech Mahindra, has a large number of leased offices in India. According to the spokesperson, the company has already identified savings of Rs 100 crore from this initiative. "Satyam plans to surrender offices whose terms of lease have expired or would be over in a few months," the spokesperson added. According to the spokesperson, consolidating space would also allow the company to optimize related costs in building maintenance, security, transport, and other support services. Last week, Kiran Karnik, Chairman, Satyam, had said, "The customer front is good and stable. But costs are high and the revenues would be less." This new plan is one of the many such initiatives announced by the company to get back on track. It is also planning to reduce costs on networks and systems and there are also plans to re-lease some of its networks and hardware.

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