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INDIA BUSINESS WORLD - 1st FEBRUARY - TO - 15th FEBRUARY - 2009
COKE TO TRANSFER SATYAM CONTRACT
THE Coca-Cola Company is transferring a substantial part of its technology services contract from Satyam to other Indian IT companies in the next 6-8 weeks, a person with knowledge of the development confirmed. However, The Coca-Cola India spokesman declined to comment.
“Coca-Cola outsources enterprise business systems (Enterprise Resource Planning—ERP) to manage their inventory and distribution. The multi-year contract could be of the order of $100 million, with at least $30-50 million of work every year. Satyam is strong in ERP and is a lowcost provider; hence lots of companies, including The Coca-Cola Company, opted for it. Now the contract could go to other vendors,” said a Bangalore-based analyst.
Satyam Computer Services chairman Kiran Karnik said: “We do not want to comment on individual customer, like every IT company. Not surprisingly, a few of Satyam’s customers have terminated contracts and a few are looking at alternative options."
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