Satyam will handle application development and maintenance for both mission-critical and legacy systems. The companies haven't disclosed specifics. Satyam president Ram Mynampati says the deal involves work on strategic initiatives and that Bear Stearns "believes we can be a strategic partner in exploring ways and means of contributing to the organization's business drivers."
Other companies in the financial sector that are sending work offshore include Bank of America, Lehman Brothers, and Nationwide Financial. Forrester Research analyst Stephanie Moore predicts that growing acceptance of overseas services providers will prompt others in the industry to follow. The financial sector will be one of the first to fully embrace sending business processes offshore, she says. "Already, banks are outsourcing such things as mortgage processing and credit-card collections to Indian business-process outsourcing firms. And top-tier investment banks and brokerages are beginning to outsource their equity research to India."
India-based Satyam will handle IT development and maintenance.