The newly appointed CEO at troubled Indian IT supplier Satyam
faces a dilemma when planning how to cut costs.
ASMurty was last week named CEO at Satyam which is fighting to
restore confidence after being rocked by a
$1bn accounting scandal.
Satyam chairman B Ramalinga Raju admitted last month that he had
fiddled the company's books for several years. The revelation came
in a letter to the company, in which Raju offered his resignation
and confessed to inflating the company's financial figures.
One of Murty's top priorities is to "Evaluate
cost-rationalisation alternatives," he told Computer Weekly.
But cutting costs through reducing headcount will notbe easy
because Murty describes the staff as the company's lifeblood.
"I am extremely proud, humbled even, by our [staff's]
performance during this crisis. Despite real uncertainty, they have
performed remarkably. In every case, they have remained committed
to providing customer value and to one another," he said. Our
recovery depends almost entirely on our [staff]. As such, I am
working to ensure that they continue to trust their leaders and are
confident Satyam will regain its market leadership position."
He said the company will look at other ways to cut costs.
"Obviously, Satyam will work hard to rationalise expenses. However,
there are numerous ways to increase operational excellence short of
reducing staff. Furthermore, as long as customer retention remains
strong, there will be no call for layoffs," he added.