Satyam eyes buys in France, bets big on Germany

Satyam Computer Services, leading software major, is mulling acquisitions in France as part of its company expansion plans in Europe, a top company official said.

“We see fairly large opportunities and are looking at acquisitions of French companies to expand our operations,” Satyam’s Continental Europe Head,said Peter Heij, head, Satyam Continental (Europe).

The company is also considering expansion in Germany, he said. Satyam has recently sealed a few acquisitions, those of Nitor Global Solutions and Citisoft in the UK and S&V Management Consultants in Belgium. “Our vision is to have 30 per cent of our global revenue emanating out of Europe by the financial year 2010. To enter some of the European countries, we have to hire local people and acquire companies. We need to have an office in France,” Heij said.

In the current business scenario, European markets are evolving as a major IT park for software development. These markets are demanding greater knowledge and understanding of country-specific issues, EU directives and resolutions, he said.

France preferred to undertake sourcing of IT services in its own language and with local firms. Major international firms are well represented in France with providers like AtosOrigin, Sopra, Sogeti & Thales capitalising on the advantage of being French.

Heij said that the IT-skill shortages in France could lead to higher wages, but local firms may also reach out more to external resources from service providers and could face growing pressure to turn to off-shore services with a preference for local vendors.Privatisation has begun in France only in the recent years.

“This brings a new imperative for firms to work more efficiently with an enthusiasm for IT services sourcing,” Heij said.