Satyam inks Framework agreement with ArcelorMittal

April 29, 2008 - PRLog -- HYDERABAD, India: Satyam Computer Services Ltd. , a leading global business and information technology services provider, today announced that it has signed a framework agreement with ArcelorMittal as one of the only two global IT services providers to consolidate sub-contractors’ activities. This agreement will focus on enhanced application support, cost advantages, reduced vendor management overhead, dependable partnership for future enhancements and IT Convergence initiatives for ArcelorMittal. Satyam will share a significant portion of approximately 70% of the currently subcontracted activities in the scope of this initiative.

Satyam will deliver these services in combination with ArcelorMittal’s European partners. Further specifics of the services are still to be defined. The Framework Agreements are going to be valid for 3 years, till 2011 however, the details of specific activities coming under the scope of the framework agreement will be defined with involvement of all key stakeholders, and will be communicated through the appropriate channels at the appropriate time.

Speaking on the occasion, Subu D Subramanian, Director and Senior VP at Satyam Computer Services Ltd, said “Satyam is delighted to partner with ArcelorMittal on the critical transformation initiative of their ITSWE (Information Technology Services Western Europe). ArcelorMittal has been a valued customer for Satyam since 2003. This large deal provides Satyam a very significant opportunity to serve ArcelorMittal with integrated process and technology solutions leveraging our industry domain expertise and solution architecting capabilities. With our integrated solutions, Satyam will work towards enabling ArcelorMittal to achieve its transformational objectives of improving the cost effectiveness, flexibility and process maturity of its Western Europe IT organization”.

Satyam offers unique solutions for applications transitioning and support to meet aggressive timelines. The ITSWE today engages several agencies on contract to support, maintain and enhance off-the-shelf and Legacy applications at different plants in western Europe. Satyam aims to maintain, support and enhance applications legacy and off-the-shelf applications deployed in Western Europe.

This initiative plans to drive down the overhead of managing multiple local vendors and derive cost benefits and enhanced application support from a smaller list of vendors. Subsequently, it will look at creating a common platform or set of applications that can be replicated across multiple sites and deployed to enhance consistency and reduce application maintenance costs.

Explaining the Satyam advantage, Sharat Kumar, Head - Process Manufacturing at Satyam and ArcelorMittal Global PRM said, “Satyam has been working with ArcelorMittal for over four years in application support, maintenance, development, ERP implementation and support in US, Asia, Europe, Americas, Africa, and Kazakhistan. In addition to the established relationship with ArcelorMittal divisions across different geographies, Satyam provided a unique solution to ArcelorMittal for applications transitioning and support, to meet their aggressive timelines as well as the value proposition of productivity gains and cost arbitrage of providing services from offshore.”

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About Satyam

Satyam , a leading global business and information technology services company, delivers consulting, systems integration, and outsourcing solutions to clients in 20* industries and 63* countries.

Satyam leverages deep industry and functional expertise, leading technology practices, and an advanced, global delivery model to help clients transform their highest-value business processes and improve their business performance. The company’s 51,127* professionals excel in engineering and product development, supply chain management, client relationship management, business process quality, business intelligence, enterprise integration, and infrastructure management, among other key capabilities.

Satyam development and delivery centers in the US, Canada, Brazil, the UK, Hungary, Egypt, UAE, India, China, Malaysia, Singapore, and Australia serve 654* clients, including more than one third of the Fortune 500. For more information, see www.satyam.com.
*As of March 31, 2008

About ArcelorMittal

ArcelorMittal is the world's largest and most global steel company, with 310,000 employees in more than 60 countries. The company brings together the world's number one and number two steel companies, Arcelor and Mittal Steel. ArcelorMittal is the leader in all major global markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. An industrial presence in 28 European, Asian, African and American countries exposes the company to all the key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.

ArcelorMittal key financials for 2007 show revenues of USD 105.2 billion, with a crude steel production of 116 million tonnes, representing around 10 per cent of world steel output. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MTP), Brussels (MTBL), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).

Safe Harbor
This press release contains forward-looking statements within the meaning of section 27A of Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Satyam undertakes no duty to update any forward-looking statements. For a discussion of the risks associated with our business, please see the discussions under the heading “Risk Factors” in our report on Form 6-K concerning the quarter ended December 31, 2007, furnished to the United States Securities Exchange Commission on January 28, 2008 and the other reports filed with the Securities Exchange Commission from time to time. These filings are available at http://www.sec.gov. This announcement is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from Satyam and that will contain detailed information about Satyam and its management, as well as financial statements.