US-based State Farm Insurance, which terminated its contract with beleaguered Satyam Computer Services Ltd earlier this week, is understood to be passing on more work to Patni Computer Systems, which has been servicing the insurance giant for several years now.

According to sources in the know, the Pune-based software services provider is ramping up its onshore operations in Bloomington, Illinois, to accommodate additional demand.

Incidentally, State Farm is headquartered in Bloomington.

Patni officials confirmed to DNA Money on the condition of anonymity that the company had been working on both “lift and shift” and “re-badging” approaches to accommodate any additional work that might come post the Satyam scam. They, however, refused to divulge specific details.

Patni had expanded the onshore operations at its Bloomington Regional Development Centre some time back and focuses on executing software development projects for the company’s insurance business unit, which is located there.

According to an earlier filing by Patni, GE and State Farm together constituted almost 60% of the company’s business in 2004. 

Interestingly, both have been clients of Satyam Computer too and according to sources, GE has also consulted Patni on possible transition arrangements if necessary.

While this composition might have changed over the years, both the clients continue to be significant contributors to Patni’s revenues.

Apart from State Farm, which has officially confirmed the severance of ties with Satyam, at least six other customers of the scam-tainted company, including US-based health insurer Cigna Corp, have reportedly indicated that they want to terminate their contracts.

These companies have asked for 90-day transition plans from the Hyderabad-based company.