Satyam Computer Service has turned over a new leaf. Operating as Mahindra Satyam, the company provides onsite, offsite, and offshore IT services. It offers a wide range of information technology services, including software development, managed IT services, engineering design, data warehouse development, and systems integration. With offices in some 35 countries, Satyam provides its services to customers worldwide, but most sales come from clients in North America and Europe. Satyam's 200+ customers include MasterCard and Saab. The company serves such markets as manufacturing, retail, financial services, transportation, and telecommunications. Tech Mahindra holds a controlling stake in Satyam.
Sales to external customers were down more than 6% in fiscal 2011 compared to 2010. Moving ahead, the company's strategy includes focusing on cloud computing, enterprise mobility, and smart grid operations. Other focuses are a Windows Azure Center of Exellence created with Microsoft and a Hewlett-Packard Center of Excellence to meet the individual R&D needs of various clients.
Tech Mahindra acquired its stake in the company in 2009. Early in the year Satyam's chairman, CEO, and CFO resigned after admitting that Satyam had doctored its books for years with fictitious assets and cash, leaving a $1 billion shortfall in the company's balance sheet.
Satyam's troubles fueled speculation it was a takeover target, and the company received approval from the Securities and Exchange Board of India (SEBI) to offer a 51% stake in the company to outside investors. In 2009 BPO and IT services provider Tech Mahindra was named the highest bidder for the controlling stake. (Tech Mahindra first acquired a 31% stake in Satyam for about $351 million; SEBI regulations require it to make a cash tender offer for the remaining 20%.) Satyam has so far operated as a standalone unit, but Tech Mahindra plans to eventually integrate it into its operations. – less