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."