HP and Capgemini, two major technology vendors to General Motors, have sub-contracted part of the orders received yesterday from GM to Satyam Computer Services. Satyam said the total value of such sub-contracts would be around $150 million over the next 5 years.
GM had announced yesterday that it has awarded outsourcing contracts for the next five years to companies like EDS, HP, Capgemini and Wipro. Out of a total of around $7.5 billion worth of contracts announced, Wipro had received orders worth $300 million yesterday.
Satyam is also inaugurating a development centre focused on the auto industry in Detroit, the home of US auto industry. The centre would have around 50 engineers and would offer automotive engineering solutions, automotive electronics, real time manufacturing, supply chain, automotive enterprise solution and digital manufacturing.
Satyam said it would be one of the first companies to launch digital manufacturing practise for the auto industry. Digital manufacturing leverages IT to collaboratively develop the manufacturing plan and manufacturing equipment simultaneously with the product. Design flaws, manufacturing kinks and inefficient processes can thus be hammered out and corrected early on when changes create little disruption of critical time-to-market schedules..
It will focus on automotive industry specific solution building and R&D, leveraging Satyam's alliances with leading industry domain and technology solution providers as well as leading academic and research institutions.
Some of the areas of focus at the centr, to be called ACE, would include automotive engineering solutions, automotive electronics, real time manufacturing, supply chain, automotive enterprise solution and digital manufacturing.
With the launch of its digital manufacturing practice, Satyam is well placed to tap the forecasted spend of multibillion dollars by 2009 for digital manufacturing software and services.
Kenneth Taormina, who joined Satyam in December 2005, as senior vice president, manufacturing, has been named the chief automotive solutions architect for ACE and will facilitate the design of high-end industry solutions in the manufacturing and automotive vertical, as well as be responsible to foster and cultivate a close relationship with Satyam's global customers at the CxO level.
"Traditionally, automotive and manufacturing sectors have been one of the early adopters of technology and we are seeing a rapid growth in this industry in the last few years," says Ramalinga Raju, founder and chairman, Satyam. "With service offering requirements centred around high-end and emerging technologies, the stronghold of Satyam, we feel it is the right time and location to enhance our focus in the automotive space where we already enjoy a strong leadership position."
Satyam is trading flat at Rs729.8 on the NSE at 01.23 PM today