The opinions of the customer-facing IT staff at Satyam
will have a defining effect on which company acquires the troubled
Indian IT supplier.
Any acquirer can prove it has the resources and management
skills to run Satyam effectively and even grow the business, but
without the senior
staff at the coal face it would struggle to sustain its
service.
Satyam CEO
AS Murty, who took over the role at Satyam last month, told
Computer Weekly the company's staff are the real power behind the
organisation. If an acquirer is to make a success of the Satyam
legacy it will need to win them over.
Mark Lewis, partner and head of outsourcing at law firm Berwin
Leighton Paisner, says the reaction of staff to bidders is an
unknown quantity, but one that will have a massive effect on who
buys the company.
He says the IT delivery staff, in certain service lines and
verticals, will be a critical part for any acquisition. "One of the
imponderables is whether Satyam is going to retain its top delivery
people. If the buyer that emerges is not to their liking, they may
disappear in their droves."
Interested parties
Four companies have so far have announced their interest in
buying Satyam. One of these, US IT firm iGate,
has withdrawn from the race following further analysis.
The other three are Indian engineering firm Larsen & Toubro
(L&T), IT services firm Tech Mahindra, and the Spice group, a
diversified conglomorate.
Winning staff
approval
Robert Morgan, director at Hamilton Bailey, which advises IT
outsourcing suppliers, says winning over the key IT delivery staff
is the top priority for the company that buys Satyam.
But he says that staff will give the new buyer a chance before
they leave. "I believe the acquirer will have three months to prove
itself to the staff. Many staff who know they could get another job
are waiting to see who acquires Satyam and what the buyer's plans
are."
Skilled staff a valuable
asset
Kris Lakshmikanth, managing director of Indian recruitment
company Headhunters, says the staff at Satyam would be unlikely to
want to work for the Spice group. "They will not want to work there
because it has no track record [in IT services]."
Phil Morris, European managing director at sourcing consultant
Equaterra, says of the three firms that are interested, Satyam
staff would probably welcome L&T the most because it has the
clearest strategy.
He says all the companies that have so far confirmed their
interest in acquiring Satyam will be heavily reliant on the skills
and experience of the staff because none of them have the same
experience as Satyam.
Whether the buyer of Satyam can return the company to its
pre-fraud status will depend on the reaction to the acquirer, from
analysts, customers and, possibly most importantly, its workers.
The new owner will have to share its plans with staff if it is to
retain their commitment after a few months.
Former Satyam chairman
B. Ramalinga Raju admitted he had falsely reported Satyam's
results to the tune of $1bn. The company has since been managed
by a board appointed by the government to help it recover from a
major crisis which saw it short of cash and its customers low on
confidence.
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