Satayam has introduced a new performance-based revenue policy designed to increase cash flow.

The company will reportedly ask certain customers to remit additional payments for profits generated by a Satyam solution.

"It could translate into protracted cash flows, but the upside will be in margin benefits. If we do projects with fewer people in less number of hours, our margins will go up. We are asking questions on whether a customer is viable for the long term or whether should we work with them on a short-term basis," Keshub Panda, Satyam's head of European operations, told the Economic Times.

Satyam may have been forced to seek additional revenue streams due to the worldwide economic recession. Indeed, the firm could soon encounter difficulty drumming up business in the depressed consulting and enterprise markets - which generate approximately 44 per cent of its revenue.

As IT Examiner previously reported, Satyam recently reduced the number of new employees it plans to hire. The company now expects to recruit 8,000-10,000 workers, rather than 14,000-15,000. The revised recruiting scheme is reportedly linked to a projected decrease in volumes and a potential financial loss due to adverse cross currency movements.

Nevertheless, Satyam has managed to defy the global economic downturn by reporting a major increase in profits. Net income rose to Rs 5.81 billion ($119 million), or Rs 8.63 per share, in the three months ending 30 September, from Rs 4.09 billion, or Rs 6.12 per share. The company's revised forecast earnings are now set at Rs 33.57 to 34.10 a share for the year ending 31 March, altering a July projection of Rs 31.83 to Rs 32.35 a share. X

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