General Electric gives Satyam vote of confidence


General Electric gives Satyam vote of confidence

Karl Flinders

General Electric (GE) has committed to continuing its work with IT services provider Satyam despite the $1bn internal fraud revealed at the Indian IT service provider earlier this month.

The vote of confidence from the world's third largest firm comes a day after US financial services company State Farm Insurance announced it had terminated its work with Satyam.

The companies work together in providing global healthcare infrastructures, with Satyam doing software development.

The announcement backs up Satyam's claim that most of its customers have said they will retain their contracts with the company.

"Ensuring continuity of service is the board of directors' top priority, and Satyam is working diligently to ensure all our customers' goals and needs are being met. We are delighted in GE's decision to continue services, our executives are reaching out to clients around the world, and at this point well over 90% of our clients have committed to continuing with Satyam," said Hari Thalapalli, head of global marketing and communications at Satyam.

The IT services provider is fighting to restore confidence among customers following its chairman's confession that he falsely inflated the firm's revenues.

Satyam said many of its customers have made formal and informal commitments to continue working with it. The firm said it is not experiencing an unusual volume of attrition and continues to gain new customers globally.

Companies such as retailer Tesco, chemicals firm Ciba, and Fifa have already said they are monitoring the situation.

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