Indian Outsourcer Eyes Overseas ExpansionIndian Outsourcer Eyes Overseas Expansion

Indian IT outsourcer Satyam Computer Services Ltd. plans to open operational centers in Hungary and Brazil, saying Tuesday it's looking to compete on a more-even footing with international rivals such as EDS and IBM, which provide IT services from locations scattered across the globe.

The center in Hungary will allow Satyam to provide so-called near-shore services to European customers, while the Brazil facility will serve as a near-shore location for Satyam's U.S. customers.

In the past three months, Satyam says it has added 27 customers, including five major multinationals. Satyam's growth is consistent with market research that indicates that the offshoring of computer work by large companies is continuing at a robust pace. Earlier this week, research firm IDC said sales of computer services by offshore firms will grow by 20% annually through 2008.

Satyam's expansion plans come as it reports a strong increase in revenue and profit. For the six months ended Sept. 30, Satyam says revenue rose 43% to $363.9 million as profit soared 39% to $73.7 million. Earnings per share rose 35% to 23 cents.