A project manager at Satyam Computer Services, Karthik Natarajan had an interesting idea. He wanted to add more testing facilities to improve the quality of work being done for a North American client. But this required a substantial investment. Normally, Karthik would have gone back to the Satyam management with a detailed investment proposal. "But since this could benefit the client, I discussed with the client on sharing the investment and showcased the business value that could be generated," he said. The client was impressed. So, Karthik presented the business case to Satyam management who also agreed.

This anecdote may sound routine, but for Karthik, who once doubted whether he had joined the right company, it was a boost to his confidence. A leader was born. "The whole full life cycle leadership plan [a plan that endorses leaders who act as bridge between various stakeholders] has not only improved the quality of work but also boosted the customer confidence on the high end of the value chain work being done from India," he said.

Today, as director of Satyam's integrated engineering services, Karthik has grown in stature with clear leadership skills. He is benefiting from what the company's chairman B. Ramalinga Raju calls the 6th orbit, where the company is focusing on developing leadership skills and innovation throughout all its layers by giving decision-making authority to individuals at various junctures of their career.

With a top line of $2 billion, Satyam's footprint is fast expanding. Acquiring companies in strategic markets and reaching out to talent-rich markets, Satyam is about to shake up its traditional image. The company now wants to be noticed at the international arenas. An example of this ambition is its sponsorship of the FIFA World Cup where it will also act as the football body's official IT partner, covering two event cycles-the 2010 FIFA World Cup in South Africa and the 2014 edition in Brazil.

As the industry debates on the effects of the US recession, Satyam, a young company by Indian IT standards, crossed $2 billion in revenue and also got listed on three major stock exchanges around the world.

Incorporated in 1987 and listed on the BSE in 1991, Satyam has grown briskly between 2000 and 2006 when it crossed the $1-billion mark. The company has worked hard to de-risk its business model and has grown at around 55 per cent.

Satyam today is present in almost all segments from health care to transport and sports. Said Raju: "Apart from the large footprint across the globe, we have been doing more oriented work in giving solutions to our clients to run their businesses more efficiently. That's what matters to them."

The company recently set up a global innovation hub in Singapore and a development centre in Guangzhou, China. With a global footprint that covers 60 countries, Satyam is reducing the risk from country-specific issues. It is now focusing on two countries-South Africa and China. In India, Satyam has five centres. Soon this would be around 13.

From a position where top ten companies used to contribute around 55 per cent of business, Satyam brought it down to around 33 per cent. Its top clientele today includes nearly 170 Fortune 500 companies. The company's consulting and enterprise business account for 45 per cent of its revenues. It increased the offshore proportion of revenues and utilisation to protect its margins. Higher billing rates enabled it to offset the impact of rupee appreciation. Satyam hedged forex worth $900 million, which was very proactive in nature.

Courtesy: The week, April 21, 2008