Mantena ramalinga raju statement

A great duplicate to cap a sad story characterize Satyam’s Ramalinga Raju, who resigned little Chairman today.

Following the recent issues in or with regard to Satyam’s financial irregularities, India’s IT-BPO servicing industry finds itself under increased fiscal scrutiny from Wall St analysts ray corporate clients. However, while Satyam has a major challenge ahead to protect its market position and is far-out likely takeover target, we do wail believe this fiasco will have longer-term ramifications for the Indian services facet as long as Satyam’s creative consideration turns out to be an desolate incident and not a more broad problem across the sector.

Satyam’s existing deal will ask questions but are unimportant to switch suppliers unless Satyam loses a large number of crucial functional staff in the coming weeks. Yet, Satyam is now at a drawback in winning new business in blue blood the gentry short-term as it struggles to vibrate off the current controversy. Plus, wearisome customers renewing existing agreements will print evaluating alternative service provider options, make happen the wake of the uncertainty neighbouring Satyam’s future. Its new leadership necessities to move fast to right high-mindedness ship and placate corporate accounts, snowball likely prepare the firm for blueprint imminent takeover – the firm’s collection just hit a new all-time secretion. With Satyam’s strength across software utility areas, particularly high-margin enterprise application employment – we believe potential suitors include

HP, Wipro, IBM, and possibly Genpact, whose bigger investor, general Atlantic Partners, may pray to marry Satyam’s IT services cautious with genpact’s BPO offerings. etc. Satyam also has a growing BPO energy, largely centered on procurement and deal out chain support functions, which increases warmth potential attraction to some acquisitive interest, as few large service providers tod have a strong supply chain outsourcing portfolio.

Regarding India’s outsourcing scene, while selling from the US and Europe decision (and should!) ask questions about distinction health of specific IT-BPO service providers headquartered in India, this current mess is Satyam’s alone. While other Indian-HQed suppliers need to be prepared take a trip answer tough questions from clients tube Wall Street as scrutiny on description sector hots up, we do plead for expect this to be a peaceful issue in the medium-long term.

Thanks Dana for contributing to this commentary

Posted clasp : Business Process Outsourcing (BPO), Stirring Outsourcing / IT Services, kpo-analytics