Satyam eyes $40m revenue from ITES consulting

Satyam Computer Services Ltd is targeting revenues of about $25 to $40 million by 2008 from providing consulting and evaluating services to ITES providers who want to implement the eSourcing Capability Model (eSCM-SP) for service providers.

"At present, a large number of ITES majors are implementing the eSCM-SP as MNCs like American Express, Boeing and Bearing Point are increasingly demanding that they adopt global quality standards that can be quantified and certified. In the future eSCM-SP certification will be used by ITES providers as a key differentiator to win big accounts," said Prabhu Sinha, senior VP, Satyam.

The company has as many as 80 consultants who are involved in the evaluation process when organisations go in for eSCM-SP certification.

Part of Carnegie Mellon University, ITsqc authorises organisations to provide capability determination services as third party evaluators and trains and authorises individuals from these organisations as evaluators and lead evaluators.

The eSCM-SP version 1 was developed by a consortium lead by ITsqc and consisting of Satyam Computer Services Limited, STQC and Accenture in 2001. The consortium was further strengthened when IBM Global Services and EDS joined in 2003.

Version 2 of eSCM-SP has been released in 2004. Besides Satyam that has the largest number of evaluators and lead evaluators authorised by ITsqc, the other companies who are authorised to provide capability determination services are Advisere, APTUS Partners, Integrated System Diagonistics Inc,Out sourcing Institute and STQC.

The eSCM-SP was designed to give organisations considering outsourcing, a consistent and objective basis for selecting an external service provider. An organisation can evaluate an outsourcer on parameters of organizational management, people-business operations, technology and knowledge management.

The model contains a set of 84 practices that cover the entire sourcing process and business relationship with the client and is intended to be complementary to existing service management and quality models.

At present Satyam has evaluated two organisations belonging to the Korean chaebol LG-LG CNS Infrastructure Service Center and LG Net Network Service Center, both of which have received a level-3 certification from ITsqc.

Level 1 to level-3 deal with meeting with client requirements and controlling through measurement, while level-4 deals with attaining all 84 best practices and level-5 focuses on sustaining excellence.

"Besides reducing transition time of new client accounts and increasing productivity, the implementation of eSCM-SP by service providers makes it easier for companies to transition back projects or move to another service provider as processes are carefully documented and also automated highly," added Sinha.

Currently it is estimated that there are 13 eSCM-SP pilot projects underway worldwide with Satyam's BPO unit Nipuna and Accenture's BPO operations leading the way in India.