Satyam Opens Its Largest Services Center Outside India

Indian outsourcer Satyam Computer Services has moved to a larger facility in Cyberjaya in Malaysia, with plans to make it the company's largest development and services delivery facility outside India, it said in a filing on Tuesday to the Bombay Stock Exchange.

Satyam was plunged into a financial scandal in January after its founder B. Ramalinga Raju said that the company had inflated revenue and profits for several years. Another Indian outsourcer Tech Mahindra acquired a major stake of 43 percent of the equity in the company, and is attempting to turn it around.

The company now uses the Mahindra Satyam brand to reflect its new owners.

The new facility is an expansion of a facility the company set up in 2007 in Cyberjaya in a bid to tap local staff, and also to provide customers delivery of services from locations outside India.

The new facility has provision for 1,100 seats. The company currently employs 500 staff in the country, and plans to move more software development and services delivery to the center.

The company plans to take advantage of the time-zone and language similarities in Malaysia to address the market in South East Asia.

At home, Satyam still has problems. Its accounts have yet to be re-stated. It has also received legal notices from 37 companies, seeking to reclaim a total of Indian rupees 12.3 billion (US$267 million), which was allegedly given to Satyam as temporary advances. Satyam said the demands are legally untenable.