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Satyam identifies telecom as growth engine - Views on News from Equitymaster
 
 
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  • Dec 7, 1999

    Satyam identifies telecom as growth engine

    Satyam Computers plans to provide infotech (IT) consultancy and related services having bagged major orders from telecom companies.

    Since its inception in 1987, Satyam Computers has focussed on software development and IT services on mainframes (legacy system). Close to 60% of revenues come from mainframe-related jobs. In FY99, the company broke into the ISP (internet service provider) through its subsidiary Satyam Infoway.

    In view of the large telecom orders, telecom is a distinct strategic business unit (SBU) of Satyam Computers. The SBU has been providing some cutting edge technologies in areas like CTI/IN applications as well as embedded systems.

    The telecom SBU has built up significant systems integration experience in various OSS/BSS such as billing and customer care, call centres, prepaid systems, mediation and CRM.

    Given the growth prospects of the telecom segment in India and abroad, demand for software will increase manifold. There is strong link between the telecom and software sectors, and growth in the former has a significant bearing on the latter. While so far, Satyam has bagged orders from local telecom companies, its expertise in this field will help it access orders even from global majors.

    Market view:
    Satyam's successful foray in products (Vision Compass), combined with the strong performance of its ISP arm (Satyam Infoway) and spurt in onsite revenues have prompted analysts to flag the stock as a 'BUY'.

     

     

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