Satyam Computer acquires Sify's SW business

DQW Bureau

12 Nov 2001 00:00 IST

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Satyam's opens Offsite Development Center in Australia

DQW News Bureau

Satyam Computer Services has announced the opening of its first software development center in Australia. Located in Sydney's York Street, Satyam's new facility will offer its complete range of offsite IT competencies and consulting services for local customers. The center will also host offshore projects for clients located in New Zealand and other countries in the region. Satyam Chairman, B Ramalinga
Raju, concurrently inaugurated Satyam's dedicated Center for Excellence in Data Warehousing and Business Intelligence at the same venue.

B Ramalinga Raju, said, "The center will help the company continue its growth in Australia and the Asia Pacific region. The decision to enlarge our presence in Australia recognizes the strategic importance of this country and the considerable business opportunity we believe exists here. To be closer to our local customers and execute the critical components of their IT projects has always been our emphasis for growth. We shall continue to invest in building competencies and
strengthening customer relationships to achieve our objective of delivering solutions to customers' business problems. Our alliances with more than 40 leading global technology firms enhances the bandwidth of services that we can offer our existing Australian clients and also provides us better access to new clients in this region," said Ramalinga
Raju.

Satyam Infoway (Sify), an Internet and eCommerce company, has announced its plans to divest its software IT services business to Satyam Computer Services Ltd
(SCSL).

While announcing its financial results for Q 2, the company also disclosed its proposal to divest its current stake in Sify. The objective of this proposal to make Satyam Computers a pure play in software services and sale of its software services business, which principally involves web services, to Satyam Computers for a fair value to be determined subject to due processes of Sify's Board and Shareholders approval. The software services business covers IT services in India, Australia and USA and represents about 20 percent of Sify's turnover last quarter.

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"The acquisition by SCSL will ensure that Sify's software services customers in India, Australia and USA will get high quality continuity of services. IT is expected that the sale of the software services business will not have adverse impact on Sify's EBITDA levels and it's path to profitability," said R Ramaraj, Managing Director & Chief Executive of Satyam Infoway Limited.

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