National Australia Bank (NAB) has suspended an IT project with
troubled Indian IT service provider Satyam because of uncertainty
about the supplier's future.
According to a report in
The Australian, NAB will suspend all work in the early stages
of transition to Satyam until Satyam's long term future is
clear.This work will continue to be carried out by NAB
employees.
"As the longer term future of Satyam becomes clearer in coming
months, NAB will consider whether to continue to transition this
work to Satyam or another offshore supplier," a NAB spokesperson
told The Australian.
NAB CIO Michelle Tredenick reportedly told staff there were
several contingency plans to deal with situation.
Robert Morgan, consultant at outsourcing consultancy Hamilton
Bailey, said many large businesseswill be looking at their
contingency plans if they work with Satyam.
"Most good contracts have extraordinary clauses in them which
can be used in cases such as fraud," he said.
He added that customers may use these clauses if Satyam is taken
over by a company they feel is incompatible with them.