Satyam gained a remarkable $316 million from its core IT servicing business; but continued to lose money in its BPO business

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Most critically, Raju has shied away from moving up the new-age tech value chain, and focused on consolidating gains in the contemporary technology spaces, like enterprise business solutions. Ramalinga Raju proudly admits that Satyam is one of the youngest Systems Integrators in the world, “Our leadership in the Enterprise Business Solutions space is well-known, and continues to anchor our growth.” Raju’s foresight in transforming the fortunes of Satyam back to its core competence – IT services – came to the fore when Satyam decided to get leaner. The exit from Sify last year signaled these very intentions of Satyam. To the horrors of many analysts, Raju has even moved away from the US market. “The performance during the previous year... demonstrates the strength of the company’s de-risked business model with dependency on the US market coming down considerably,” asserts Raju.

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Source : IIPM Editorial, 2006, Arindam Chaudhuri's Initiative

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