Satyam Steps up Investments to Make Malaysia Its Largest Software Hub outside India
- 500-seat Global Solutions Center goes live on a fully operational basis
- Move accelerates consolidation of Satyam’s Global Delivery Model 2.0
- New facility staffed largely by Malaysian IT engineers; making Satyam one of the region’s largest overseas recruiter of local talent
- GSK chooses Malaysia as additional offshore location outside India
Hyderabad, September 10, 2007: Satyam Computer Services Ltd. (NYSE:SAY), a leading global consulting and IT services provider, announced today that its 500-seat Global Solutions Center (GSC) here is fully operational. It is the first phase of the rollout of Satyam’s Global Delivery Campus in Malaysia.
Inaugurated today by Malaysia’s Second Minister of Finance, YB Senator Tan Sri Nor Mohamed Yakcop, Deputy Minister of Science, Technology, and Innovation, YB Dato’Kong Cho Ha, and Satyam Founder and Chairman Mr. B. Ramalinga Raju, the facility will become Satyam’s largest outside India. The GSC is already staffed by 300 (mostly Malaysian) IT engineers, who support Satyam’s ASEAN, Middle Eastern, and American customers.
Satyam’s progress with its GSC accelerates consolidation of its Global Delivery Model 2.0, an integral part of the company’s strategy to provide a distributed delivery capability for global customers. The GDM 2.0 calls for components of large-scale projects to be completed wherever it makes the most business sense, rather than having an entire program take place in a single facility. The approach delivers significant cycle time and cost reductions, in addition to quality enhancements.
The Malaysia campus also reflects the organization’s commitment to creating an alternative workforce, multi-country model, and a global delivery approach offering optimal, customized business solutions to its global customer base.
The inauguration was attended by numerous Malaysian dignitaries, including Dato’Badlisham Ghazali, the chief executive officer of Multimedia Development Corporation (MDeC), the custodian of Malaysia’s ICT development; and Mr. Sanjay Panda, Counselor (Economic) from the Indian High Commission in Malaysia. Several senior executives from Satyam, including Mr. Virender Aggarwal, the director and senior vice president of Asia Pacific, Middle East, India, and Africa, also attended.
The facility will be integrated with other Satyam GSCs across the globe, and serve as a major software development center, creating predictable solutions that customers can bring to market more quickly via Satyam’s low-risk global delivery model. It is expected to create more than 500 jobs for Malaysian graduates over the next 12 months. It also complements a 100-seat development center Satyam operates in Kuala Lumpur. That facility, which was established in 2003, serves as a nearshore hub for ASEAN customers.
“We are extremely pleased to have our newest GSC become fully operational. We consider this facility to be a significant part of Satyam’s commitment to multi-dimensional investments in Malaysia, an excellent alternative to India for solution development,”said Mr. Raju. “We find the country attractive because of its advanced infrastructure, rich ICT talent pool, competitive cost environment, and favorable business climate. We look forward to strengthening our relationship with the Malaysian government and the professionals in this country. At the same time, we are proud to play a role in the country’s ICT success.”
“Having a giant IT company such as Satyam to commit and expand their operations in MSC Malaysia is a significant achievement to us as this could herald the affirmation that Malaysia is now on the map as a growing and preferred SSO location. We applaud Satyam for its incisive decision and offer our support in ensuring its growth in Malaysia through an enabling environment, strong government support and talent development that promotes sustainability,” said Dato’Badlisham Ghazali.
This latest facility is a hi-tech center featuring a state-of-the-art infrastructure and videoconferencing facilities. Equipped with high-end security features such as biometric (finger-print) identification, the GSC also has three training labs and around-the-clock access to Satyam's global knowledge repository, which can be leveraged to deliver cutting-edge solutions to customers across the globe.
The opening followed a signing of a Memorandum of Understanding last December between Satyam and MDeC, which oversees MSC Malaysia, Malaysia’s government-designated, 750-square kilometer high-tech zone. MSC Malaysia, along with its state-of-the-art infrastructure, was designed to make Malaysia a global IT leader by fostering intellectual and strategic leadership.
“We plan to make Malaysia our largest software development hub outside of India over the next few years. We are finding that the rapid strengthening of our Malaysian operations is bolstering our global delivery model, and in turn, Satyam’s international expansion,” said Mr. Aggarwal.
“GlaxoSmithKline is one of the top ten customers of Satyam and we have been servicing them from our offshore centres in India for the past five years. At the beginning of this year, we started evaluating options for an additional location to help mitigate risks and we finally decided on Malaysia as it was the most appropriate choice for us to expand,”said Kishore Rachapudi, Head of Life Sciences, Satyam Computer Services.
Commenting on the launch of Satyam’s facility, Ian Hau, Senior Vice President of Global Standards and Applications, GlaxoSmithKline said “GSK has been looking to diversify on location risks in our large IT offshoring practice and along with our strategic partner, Satyam, we have chosen Malaysia as one of the additional locations. Malaysia has world class infrastructure and a pool of excellent English speaking technical talent at competitive prices hence making Malaysia a very attractive location outside India.”
Exceptional local talent
Realizing the potential of Malaysia’s engineering talent and software market, Satyam spearheaded its first mass recruitment program for graduates outside India here in 2004. To date, 65 Malaysian graduates have been trained by Satyam and absorbed as full-time employees in the GSC. This initiative has helped Satyam staff its center while transforming recent graduates into industry-ready software engineers, bolstering the country’s ICT base along the way. Currently, the GSC employs 300 professionals, of which two-thirds are Malaysian. Within four years, the center will employ 2,000 associates and enhance Satyam’s position as a partner with Malaysia.
Satyam’s MOU with MDeC includes the Campus Link Program, an initiative designed to develop IT talent throughout Malaysia. The program enhances Satyam’s recruitment efforts in Malaysian universities and helps the company serve its global clients more effectively, and with optimal consistency. The universities provide pools of entry-level talent, professionals who then undergo a customized orientation program featuring exposure to cutting-edge practices.
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This press release contains forward-looking statements within the meaning of section 27A of Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Satyam undertakes no duty to update any forward-looking statements. For a discussion of the risks associated with our business, please see the discussions under the heading “Risk Factors”in our report on Form 20-F concerning the quarter ended March 31, 2007, furnished to the United States Securities Exchange Commission on April 30, 2007 and the other reports filed with the Securities Exchange Commission from time to time. These filings are available at http://www.sec.gov.
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