Satyam Buys Target Global KPO Market

Indian company Satyam Computer Services has bought the market research and customer analytics operation of Caterpillar Inc. for $60m (c.£30.2m); and Belgium-based consulting firm S&V Management Consultants for $35.5m (£17.8m).

The firm will add the expertise to its existing business consulting capabilities and launch a business unit to provide research and analytics services globally to Caterpillar and other companies. The firm says the combined skills will enable it 'to establish itself at the forefront of the substantial KPO market' worldwide, forecast to reach around US$17 billion by 2010, with India accounting for about $12 billion and market research and analytics for around a quarter, according to a study by NASSCOM. The unit will offer segmentation, promotions, forecasting, new product development, service, validation, and customer survey execution, and Satyam says it will launch innovation centers in India, Europe, North America, Latin America and Asia Pacific.

Chairman B. Ramalinga Raju says the move strengthens the already strong relations between Caterpillar and his firm, and is also 'a significant step in our march toward becoming true business transformation partners with our customers.'

The purchase of Ghent-based S&V will significantly reinforce Satyam's supply chain strategy capabilities, with 60 highly skilled consultants joining the group. S&V will maintain its name and brand for the near future but will become a part of Satyam's Consulting and Enterprise Solutions team. With offices in Belgium and the Netherlands, the $15m firm develops supply chain solutions, largely for manufacturing and pharmaceutical companies and public entities.

Also today, Satyam announced that it will buy out CA's half share in the pair's smart card and e-learning joint venture C&S, launched in 2001; and forecast full year 2009 revenues of $2.65bn to $2.69bn, up 24-26% on the year, dramatic growth for most firms but well down on its previous rates of 40% plus.

Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines, online at www.cat.com . Satyam has more than 51,000 employees and serves clients in 20 industries and 63 countries via development and delivery centers in the US, Canada, Brazil, the UK, Hungary, Egypt, UAE, India, China, Malaysia, Singapore, and Australia. Web site: www.satyam.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.