Satyam has accelerated its efforts to acquire major international businesses.

According to chairman B Ramalinga Raju, the fall of US banks and mortgage firms has presented the company with a number of lucrative opportunities. Raju also noted that a $4-5 billion war-chest may be established to purchase appropriate entities.

"The acquisition could be even in billions of dollars," said Raju. 

Despite the economic slowdown, Satyam managed to generate approximately $10 million (Rs 48.97 crore) in revenue during the first quarter of the fiscal year '09. Nevertheless, shares have lost over 40 per cent of their value during last four months. The company, which has a surplus of over Rs 7,000 crore, is slated to evaluate all possibilities that could add value to shareholders.

A W George of the Hero Mindmine Institute told the Times of India that the rate of IT recruitment has "come down by about 30 to 40 per cent" compared to 2008.

"Domestic and MNC tech firms like TCS, Infosys, Wipro, Satyam, HCL, Patni, IBM, HP and Dell are all said to have embarked on a conscious cost-cutting mode," said George.  X

Check Out
Business Standard
Times of India
IT Examiner