|Rediff India Abroad Home | All the sections|
Discuss | Email | Print | Get latest news on your desktop
Satyam has lost value: iGate CEO
February 20, 2009 01:41 IST
Scam-tainted Satyam Computer Services [Get Quote] has lost its value with customers moving out of the company, according to Phaneesh Murthy, chief executive of the US-based iGate Corporation.
"The process has taken time, customers have moved out and Satyam has lost its value. We have lost interest in buying the company," Murthy said.
When pointed out that the Satyam board had maintained that key customers continue to engage with the company, he said he had information that customers were moving out.
Last month, iGate said it would be interested in buying Satyam and that it was in talks with private equity firms for possible funding of any deal, joining other potential bidders like Larsen & Toubro.
iGate, an outsourcing solutions provider, is currently expanding its footprint in India. It added a new 66,000sft facility in a special economic zone at Hitec City here on Wednesday. The Rs 10-crore facility has a capacity to seat over 500 employees.
Murthy said the company was creating an additional space of 120,000 sft in Bangalore at a cost of about Rs 60 crore and 65,000 sft in Chennai involving an investment of Rs 12 crore. The Bangalore facility would have an additional seating capacity of 1,000 people while the Chennai centre would be able to accommodate 600 more employees.
iGate would also be scaling its existing ERP Centre of Excellence in Hyderabad to cover manufacturing and logistics, and banking verticals.
Despite recession, Murthy is hopeful that his company would do well. The company registered revenues of $218.8 million in 2008 and ended the year with 6,600 employees.
Email | Print | Get latest news on your desktop