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Thursday, July 16, 2009

Revenue From New GSK Deal Spread Over 5 Years: Mah Satyam

Mahindra Satyam has bagged a mega deal with GlaxoSmithKline (GSK), one of its top-ten clients. The company’s chief marketing officer, said revenue from the deal was spread equally over five years.

He added that he saw various embargoes against the company being lifted soon. Mahindra Satyam, formerly Satyam, was rocked by a corporate scam in January this year, after which Tech Mahindra picked up controlling stake in the company. Hari said that about 500 employees from the Mahindra Satyam had started working on projects for Tech Mahindra. He added that about 700 employees had been recalled from the virtual pool, a cost-cutting measure, which the company undertook that involved benching employees but not relieving them.

The GSK deal was probably one of the bigger ones that we have heard about and it is an existing customer. We have been working with them for sometime now. It is a fairly largish customer for us. Consequent to this January 7 event, there was an embargo and there was a freeze on new sales with us and they went through a fairly longish due diligence over the last few weeks, and eventually, have now extended for another five years of a strategic partner which is a bigger one.

There are a few other similar reinstatement of a strategic partner status that has happened with very large aerospace customer in Europe and similarly with an energy and gas customer in US. It goes on with a few other large customers so far but in terms of new logo wins, one is of course the existing customers and what you have managed to do them obviously they know you, and therefore, it makes it a little easier. The new customers has been a good news. We have been able to win in excess of 20–21 new logos in the past few weeks and we have been able to stop the slide of customers at the same time.

source:MC

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