Satyam Computer Services, a leading global IT services company, on Wednesday signed an estimated $200 million (around Rs 900 crore) five-year contract with California-based Applied Materials, a global leader in manufacturing microchips.
Satyam will provide application development, maintenance, and support besides business transformation core technology services to the US-based company through a managed services delivery model.
Satyam has provided ADMS and Engineering Services to Applied Materials for more than five years prior to this contract. It received less than $40 million per year in revenues then.
"Now, we are looking at the entire application portfolio," T R Anand, director and senior vice-president, TIMES group (Telecom, Infrastructure, Media and Entertainment and Semiconductors) and Ramesh Shastri, senior vice-president, Satyam, said.
"We believe the managed services model, along with service level agreements, is the right approach for Applied Materials," said Ron Kifer, group vice-president
and chief information officer of Applied Materials.
"We expect this model to provide us with a very cost-effective solution for managing IT and business infrastructure processes and activities, as well as measurable service level and quality enhancements. Satyam's mature processes, deep technical capabilities and high level of commitment were the key factors in our decision to engage them in this
strategic relationship."
As evidence of its commitment, Satyam has created a dedicated development centre for Applied Materials. The facility will be part of Satyam's Electronic City campus at Bangalore.
"We expect the managed services approach to become commonplace, and serve as a model for numerous future engagements with other customers," said B Ramalinga Raju, Satyam's founder and chairman.