Is IBM Buying Satyam?

Over on Deal Architect, Vinnie Mirchandani has the scoop that IBM will be acquiring Satyam, the fourth largest Indian offshoring provider. According to Vinnie, "Satyam is strong in several manufacturing markets and has one of the better packaged application practices of the Indian firms. [But] It has also done a poor job marketing itself compared to the other Indian firms and IBM would clearly turn that around." Vinnie later opines that since IBM "inconsistently positions its own growing India operations" that integration "will be a challenge". Satyam has a small but growing procurement technology and outsourcing practice that IBM will certainly take under its booming Spend Management BPO fold. But as I've blogged about before, I don't believe that labor arbitrage is the primary driver of procurement BPO savings opportunities.

Jason Busch

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