March 29, 2007 – Applied Materials Inc. has extended its services partnership with Indian IT services firm Satyam Computer Services Ltd. in a new signed a five-year, $200 million contract, under which Satyam will provide application development, maintenance, and support (ADMS), as well as “business transformation” technology services, via a managed services delivery model. Satyam has established a dedicated development center for AMAT as part of its “electronic city” campus in Bangalore.
Ron Kifer, AMAT’s group VP and CIO, explained in a statement that the company sees the managed services model as “a very cost-effective solution for managing IT and business infrastructure processes and activities, as well
as measurable service level and quality enhancements.” He noted that Satyam’s “mature processes, deep technical capabilities and high level of commitment” helped seal the partnership extension.
The Indian firm, which boasts 541 customers including more than 150 Fortune Global 500 and Fortune US 500 firms, already had been providing ADMS services to AMAT for more than five years.
“We expect the Managed Services approach to become commonplace, and to serve as a model for numerous future engagements with other customers,” stated B. Ramalinga Raju, Satyam’s founder and chairman.