Big clients plan to exit Satyam
Major clients of Satyam Computer Services, such as General Electric (GE), Nestle and British Petroleum, have started exploring alternative options such as moving work to other outsourcing vendors.
GE, the largest client for Satyam, is learnt to be evaluating options of inducting the Satyam team working on its IT project or convincing other IT vendors to merge this team with their resources to ensure continuity of work. A source familiar with the matter said talks are on with other outsourcing vendors. Satyam’s bigger rival Tata Consultancy Services (TCS) already provides services to GE.
PwC Hyderabad staff asked to stay away from office
As the Satyam saga unfolded on television, the first to leave office weren’t just Satyam employees, but employees of the company’s audit firm Pricewaterhouse-Coopers (PwC) as well.
Suitors list's long, but L&T seen best match for Satyam
The suitors for the tainted Satyam Computer Services range from European and US IT majors, such as Logica and Perot Systems, to niche Indian players, such as Tech Mahindra. But the best match may be L&T, which has tried to scale up its infotech business for long without much success.
L&T Infotech has lagged many of its peers in growth, despite having the backing of the country’s largest engineering company. Acquiring Satyam will help L&T Infotech consolidate its strength in manufacturing and also give it size and scale through Satyam’s ERP practice, which is its strongest area. Among Infosys Technologies, Tata Consultancy Services, Wipro and HCL Technologies, Satyam has the strongest ERP practice.
Credit cards bills, EMIs give Satyam staff nightmares
Credit card dues and EMIs for various loans are giving sleepless nights to thousands of Satyam Computer’s employees called ‘Satyamites’.
“Even if we are not retrenched, we may face cuts in our salaries. This whole thing is not our fault,” said one employee who, like all others interacting with the media at Satyam campus, spoke on condition of anonymity.
Can Satyam pay salaries to staff?
A legendary entrepreneur overstated his company’s assets and understated the liabilities. Many clients who had reposed their trust in Satyam may feel cheated and might walk away. In the hypothetical scenario of Satyam facing a zero-revenue and zero-account receivables situation starting today, how long would it be able to pay its 53,000 employees?
The ‘fudged’ cash and bank balances could have lasted them 10 months but Ramalinga Raju has already confessed on Wednesday that Rs 5,040 crore out of the Rs 5,361 crore is non-existent.
Satyam employee numbers are also inflated
Satyam’s 53,000 employees are also inflated like the company’s cash reserves to siphon off funds in the name of non-existent associates , say analysts now looking at the company with a scanner. “The figure of 52,865 associates could actually be a much smaller number, with the additional numbers used for ‘‘ other purposes.’’
Sources say that two years ago the company was aiming at a headcount of 80,000 by Q1 2009 and Raju’s ambition to turn Satyam into a multicultural enterprise helped the firm fudge employee figures.
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