Satyam aims to double revenues from aerospace, defence practice

Satyam Computer Services Limited is targeting to more than double its revenues from the aerospace and defence (A&D) practice by 2008.

The Hyderabad-based global consulting and IT services major is looking at a contribution of around $100 million from the A&D practice by 2008, from less than $50 million at present.

Satyam is also eyeing a $100 million or above deal in this space in the next financial year.

Speaking to Business Standard, Pinaki Dasgupta, vice-president, global head for aerospace and defence practice, Satyam Computer Services Limited, said, "By 2008, we expect the A&D unit to contribute $100 million in revenues. During this period, we expect our manpower to triple from around 650 to more than 2,000 under its fold."

Satyam has spent the last few months in formulating its leadership team for this practice and is expecting the A&D unit's growth rate to be higher than that of the company.

The company is also looking at closing in on a large deal (size of $100 million or more) in the next financial year. "So far, the typical deal size for this practice has been in the range of $15 million to $25 million. We are hoping to bag our first large deal in the aerospace and defence practice in the next financial year," Dasgupta said.

The A&D practice functions from Bangalore, Chennai and Hyderabad. "We have three centres of excellence in Bangalore and Chennai. While Bangalore focuses on aerospace engineering, Chennai has centres that look into the avionics and radio frequency identification (RFID) aspects. We are betting big on the RFID front as well and are already working on a prototype for a client," Dasgupta said, adding that they would be expanding at all the three centres and might even look at Delhi for future growth.

At present, Hyderabad centre does not host any centre of excellence on the aviation and defence fronts. However, the company is engaged in a lot of engineering work.

Satyam has been working for Airbus and Bombardier, among the 17 clients that it has in aerospace and defence.

"We have around 160 engineers working for Airbus A380 on aspects like wiring harness. This apart, we have 150 engineers working for Bombardier on such aspects as designing, detailing, stress analysis and technical publication," Dasgupta said. Eleven of the aforesaid 17 deals of the company are not long-term.