Satyam succeeds in avoiding becoming India's Enron
Indian offshore IT service provider Satyam could be emerging
from the turmoil of its recent past when it was subject to a
major internal fraud with its first major deal following its
acquisition by Tech Mahindra.
The fraud which recently hit the company has been described as
India's Enron. But the efforts of Satyam's management and the
Indian Government, Satyam survived and could prosper unlike Enron,
which disappeared.
The newly named Mahindra Satyam has won a five year extension on
a deal to provide SAP and other services to pharmaceuticals giant
GlaxoSmithKline (GSK).
In January Satyam was thrown into turmoil when its former
chairman B Ramalinga Raju admitted to misreporting the company's
financial figures to the tune of $1bn.
Since then the company has
attempted to restore confidence amongst its customers and
employees and at the same time, with government support, has been
trying to find a new parent.
Within a few months of the fraud scandal being revealed Indian
company
Tech Mahindra won the race to acquire Satyam.
Bill Louv, CIO at GSK, said the compan has always received a
high level of professionalism and commitment from Satyam and its
staff over the past seven years.
Mahindra Satyam CEO CP Gurnani said the deal is also evidence
the company is recovering from its recent past.
"GSK's selection truly recognises the competitive spirit and
resolve of the [staff] of Mahindra Satyam, whose skills, commitment
and delivery excellence were unmatched," he said. "This is a
reflection of the fact that we are well on our way to regain our
position as a market leader and we are thankful to GSK for having
reposed their faith in us."