(Maija Palmer in London writes:)
Indian IT services companies have been trying to break into the European market for years. Despite their patient pitching for contracts, and small strategic acquisitions, potential customers in countries like France and Germany have been reluctant to embrace their offshoring models. Many industry observers have been expecting the Indian companies to make a big acquisition – like buying Atos Origin – to establish themselves. Now however, it looks like there could be another way – football.
Satyam, one of India’s five largest IT outsourcing companies, has signed a multimillion dollar contract to sponsor the FIFA World Cups in 2010 and 2014. It is the first time the company has sponsored any sports event on this scale.
Rama Raju, co-founder and chief executive, says the World Cup gets a better audience than the Olympics and could be particularly powerful in building awareness in Europe, which accounts for around 23 per cent of Satyam’s revenues.
The company is even considering drafting in Zinedine Zidane to help woo the recalcitrant French.
It’s seems worth a shot. Even at multiple millions of dollars, the FIFA strategy is a lot less risky than buying and – more to the point – trying to integrate Atos Origin.
