Tata takes over some Satyam business

The World Bank has handed Tata Consultancy Services (TCS) much of the work previously carried out by the troubled Indian IT services company, Satyam.

The...

The World Bank has handed Tata Consultancy Services (TCS) much of the work previously carried out by the troubled Indian IT services company, Satyam.

The World bank cut ties with Satyam on 25 December. Itbarred Satyam for eight years for "providing improper benefits to World Bank staff and failing to maintain documentation to support fees charged for its subcontractors."

"When Satyam was barred TCS became one of the main contractors that has come in and replaced it," said a World Bank spokesman. "TCS was the most qualified replacement."

TCS said it would not comment until after it released its results for the third quarter tomorrow.

Satyam would not disclose the amount of business it previously did with the World Bank.

Satyam is at the centre of a $1bn accounting fraud after its former chairman admitted to fixing the books. Customers are closely monitoring the situation and weighing up their options.

Indian Suppliers Wipro and Megasoft Consultants have also been barred from working directly with the World Bank because of conflicts of interest. The appointment of TCS shows that The World Bank is not targeting Indian firms.

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