HYDERABAD: Kicking off the first of the mega-buck deals it is chasing this year, Satyam Computers said on Wednesday that it had bagged a $200-million contract for providing managed services to Applied Materials, a $10-billion giant that specialises in nano-manufacturing solutions for the semiconductor industry.
As reported by DNA Money earlier, Satyam is close to clinching 4-5 $100- million-plus deals among the 12-13 $50 million-plus contracts it is negotiating. Satyam will service Applied Materials from its Electronic City campus in Bangalore over the duration of the five-year contract, in which it will provide application development, maintenance and support (ADMS) and business transformation services.
Applied Materials supplies equipment, materials and software products for the fabrication semiconductor chips to global giants like Intel, AMD and others.
While Satyam has already provided ADMS and engineering services to the company for over five years prior to the announcement, TR Anand, director, TIMES (Telecom, Infrastructure, Media, & Entertainment), said there will be significant value-addition in the new contract.
The earlier engagement was based more on time and materials contracts, while the relationship will be more strategic and deeper, Ramesh Shastri, Sr vice-president, added.
The contract adds significantly to Satyam’s (TIMES) practice, which currently accounts for a little over 20% of its overall revenues. TIMES, which had contributed just about 14% to the 2003 revenues, has been growing pretty fast. Satyam employees close to 7,500 engineers in the vertical.
Given the significant growth being seen in the vertical, Satyam was looking at acquisitions in the space to add size and offerings that it can provide to clients, Anand said.
However, he refused to divulge the timeframe or the size for the acquisition.
