National Australia Bank (NAB) has suspended an IT project with troubled Indian IT service provider Satyam because of uncertainty about the supplier's future.
According to a report in The Australian, NAB will suspend all work in the early stages of transition to Satyam until Satyam's long term future is clear.This work will continue to be carried out by NAB employees.
"As the longer term future of Satyam becomes clearer in coming months, NAB will consider whether to continue to transition this work to Satyam or another offshore supplier," a NAB spokesperson told The Australian.
NAB CIO Michelle Tredenick reportedly told staff there were several contingency plans to deal with situation.
Robert Morgan, consultant at outsourcing consultancy Hamilton Bailey, said many large businesseswill be looking at their contingency plans if they work with Satyam.
"Most good contracts have extraordinary clauses in them which can be used in cases such as fraud," he said.
He added that customers may use these clauses if Satyam is taken over by a company they feel is incompatible with them.