But the company and its assets are worth saving said Tarun Das, chief mentor at the Confederation of Indian Industry.
He also warned that there is no way of guaranteeing that the company's assets are not poached.
Hesaid the Satyam fraud has had a "very rough" effect on India's image and has "damaged its brand today."
"It may be one example but it has hurt our image," added Das.
Andy Gallagher, of Compass Management Consulting, said in the short term the Indian brand image will suffer, but that in the long term it will recover.
Das said Satyam is a company worth saving with "tremendous assets of people, technology and skills as well as great customers."
He said although customers are concerned with the current situation they have high regards for Satyam.
Gallagher at Compass said the Satyam case sends a message to businesses signing outsourcing deals to be prepared forwhen things go wrong. "Nobody would have thought that Satyam of all companies would have had these problems. The big lesson is that the day you sign a contract with a service provider should be the day you put your transition plans in place."
"A lot of organisations would have been caught on the hop by this," added Gallagher.