New Delhi, March 28 (IANS) Indian IT major Satyam Computer Services has signed a five-year contract valued at $200 million with US-based nanotechnology giant Applied Materials to provide technological support services.

Under the contract, Satyam will give application development, maintenance and support (ADMS) plus business transformation core technology services to Applied Materials Inc. through a managed services delivery model.

"We expect the Managed Services approach to become commonplace, and to serve as a model for numerous future engagements with other customers," Satyam founder and chairman B. Ramalinga Raju said in a statement Wednesday.

Satyam has also set up a dedicated research and development centre for Applied Materials, which will be a part of Satyam's Electronic City campus at Bangalore.

"We expect this model to provide us with a very cost-effective solution for managing IT and business infrastructure processes and activities, as well as measurable service level and quality enhancements," said Ron Kifer, group vice president and chief information officer, Applied Materials.

Satyam has been providing ADMS and engineering services to the US firm for more than five years, the statement said.