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Satyam Computer to set up China subsidiary

Satyam Computer Services Ltd said on Wednesday it will open a wholly-owned subsidiary in China this financial year to tap a growing market there.

The company, India's No 4 software exporter, is the second large Indian technology firm after top software exporter, the unlisted Tata Consultancy Services, to venture into the Asian powerhouse. TCS set up shop in China in June.

Satyam serves more than 270 clients and counts General Electric as its largest customer.

"China is a very important market for us," Satyam's director K Thiagarajan told analysts at a conference call after the company announced second quarter results.

"The main drivers for business are our global clients who have a base there," he said.

Customers had requested services from onsite in China to mitigate their risks following India-Pakistan tensions and also to meet their service requirements in a market, which is becoming increasingly more important for them, he said.

Thiagarajan said China can also serve as a good development centre for nearby and other markets like Japan.

"We will operate it on an "as required" basis rather than build anything big and wait for business," he said.

The subsidiary will be set up in Shanghai.

Many Indian companies are eyeing opportunities to set up operations in China. But Infosys Technologies Ltd, the No 2 software services exporter, which received clearance for a branch office from Chinese Premier Zhu Rongji in January, has gone slow on the idea.

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