Satyam might be facing the heat right but the Satyam saga has clearly dealt a blow to the Indian IT dream.
The IT industry represents modern India. They are the ones who have created brand ‘India’ on Wall Street.
But Raju's fraud might change the Indian IT dream forever.
After all, the fourth largest Indian IT company, Satyam has fallen off the cliff, in what unfolds as the most dramatic frauds of recent times.
Now, the clients would think twice before engaging with an Indian IT vendor.
The reason is simple—they would ponder over whether the law of the land can be trusted anymore. However, Narayan Murthy, the founder of Infosys, said "One apple is bad doesn’t meant everyone is bad."
Well, even as Murthy calls it a one off case, Infosys has already started promising more disclosures to its investors and whatever it takes to keep the clients’ trust.
Also, industry body Nasscom has swung in action, asking companies to switch to the top gear so as to retain their clients.
Som Mittal, President of Nasscom, said,"We are asking companies to make more disclosures on governance issues to their clients."
It’s certainly going to be tough ride for the Indian outsourcing industry with the recessionary pressure of the west on one hand and now, an image crisis.
Meanwhile, the international biggies like IBM and HP will benefit directly, unless the industry leaders go all out to defend their credibility.
The IT industry represents modern India. They are the ones who have created brand ‘India’ on Wall Street.
But Raju's fraud might change the Indian IT dream forever.
After all, the fourth largest Indian IT company, Satyam has fallen off the cliff, in what unfolds as the most dramatic frauds of recent times.
Now, the clients would think twice before engaging with an Indian IT vendor.
The reason is simple—they would ponder over whether the law of the land can be trusted anymore. However, Narayan Murthy, the founder of Infosys, said "One apple is bad doesn’t meant everyone is bad."
Well, even as Murthy calls it a one off case, Infosys has already started promising more disclosures to its investors and whatever it takes to keep the clients’ trust.
Also, industry body Nasscom has swung in action, asking companies to switch to the top gear so as to retain their clients.
Som Mittal, President of Nasscom, said,"We are asking companies to make more disclosures on governance issues to their clients."
It’s certainly going to be tough ride for the Indian outsourcing industry with the recessionary pressure of the west on one hand and now, an image crisis.
Meanwhile, the international biggies like IBM and HP will benefit directly, unless the industry leaders go all out to defend their credibility.
Source: NDTV Profit
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