Indian IT supplier Satyam has lost no European customers
since it was embroiled in a fraud scandal in January, the company
said today.
Satyam's competitors have attempted to use the uncertainty
surrounding the company's future to tempt customers away with
cut-price deals.
Som Sarma, head of Satyam in the UK and Ireland, said Satyam
has lost customers in the US and some other regions following
the
accounting fraud committed by its former chairman. But none
have jumped ship in Europe.
Western IT service providers were offering customers the same
price as their Satyam contract for a year. "Our competitors tried
to shake us out," said Sarma. "They were offering our customers
free transitions."
But Sarma said the uncertainty in the market gave Satyam time to
prove itself to its customers. "Because of the market conditions
customers did not want to change suppliers."
Satyam also worked hard to reassure its uncertain customers.
"One thing we did was communicate with our customers well. We told
them if anything happens at Satyam you will hear it from us."
He said customers showed great loyalty. "Our customers have told
us that they told our competitors that they would only consider
them as a plan B."
Indian IT group Tech Mahindra won the race to acquire Satyam in
a deal worth about $350m. It fought off many companies to win
Satyam but its main competition in the end was Indian engineering
firm Larsen & Toubro.
"We wanted the acquirer to have synergies with Satyam and have a
good record of corporate governance. Both Tech Mahindra and L&T
fitted the bill," said Sarma.