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Indian software firms turn from US to Europe - Satyam targets larger contracts

By Subhankar Kundu @ Thursday, July 03, 2008 10:02 AM

Section - Outsourcing/Outsourcing

 
 

Concerned by the US recession, Hyderabad-based Satyam Computer Services is planning to switch over its sales concentration from the US to Europe.

Fearing that it has an over-dependence on US customers, Satyam is heading towards a sales target of $1 million in Europe over the next three years.

Senior vice president and Europe sales head of Satyam Peter Heij revealed the company’s plans to boost European revenue to 25 per cent by the end of 2011 in an Interview given to a website, Bloomberg.com.

Heji said the Indian software player is going for big new contracts in Europe as well as winning new projects from existing clients. These include Airbus maker European Aeronautic Defence and Space and Arcelor Mittal.

Two more Indian software companies - Infosys and Tata Consultancy Services (TCS) - are also looking to Europe as the US market falls. Last year, TCS recorded a whopping 29 per cent of revenue in Europe, followed by Infosys with 27 per cent.

Out of 2,000 vendors, EADS chose Satyam along with three other Indian players as part of the Airbus maker’s plans to cut costs to $3.3 billion by 2010. Heji expects to get an equal share of the project.

Satyam generated some $440 million in Europe last year, accounting for 21 per cent of its revenue.

Satyam is also aiming to get involved with Arcelor Mittal for a longer period of time and on larger projects. The company is also competing for some large contracts in the telecommunications industry in France and is targeting orders from some major European energy and utility companies, Heij said.

Shares of Satyam are soaring. X

 
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