The trauma of the flailing IT company does not end over here. Satyam is also losing its big clients. Assurant, a Fortune 500 firm (ranked 309) and Visa Inc, the world’s largest electronic payment gateway, have both severed off their contracts with Satyam in the last two weeks. The company has also lost some of its clients from its New York Stock Exchange profile.
Insurance major Assurant, which manages over $25 billion assets and has annual revenues of $8 billion, has moved the work Satyam had been managing for it to another Indian IT company—Zensar Technologies. Global payment, on the other hand, has severed its ties with the company owing to the World Bank’s revelation of an 8-year ban on Satyam.
The reduction in the client base of the company is an issue of serious concern. Employees are worried about their job and salary, while the shareholders are concerned about the return on their investments. I know what the employees are going through because I have a friend who is working in Satyam. Their fear is that if two of their clients can sever off, other can also take the same step. That would further worsen the condition of the company.
The new CEO has installed some faith in the hearts of the employees and shareholders. It is because he plans to chart a precise and practical 30-60-90 day plan that will encompass and address the interests of all stakeholders. The company aims at working together its board, special advisers, and the Boston Consulting Group to achieve its plan within a week’s time. Not only this, salary to its staff is among its top priorities. The procurement of a bank loan of Rs 600 crore marks the first step towards this plan. Both the employees and the shareholders are now believing it to be a new beginning of the company.
The World Health Organisation’s (WHO) statement that it found no evidence of fraudulent practices by its vendor Satyam has further instilled confidence in the minds of the people. However, WHO is reviewing carefully its current contractual agreements with Satyam. WHO is also making contingency arrangements in case Satyam is not able to complete its GSM project work on time.
At the time, when the company is trying to settle down all its issue, the act of our political parties is disheartening. The ruling UPA and opposition NDA are indulging in mudslinging over the Satyam scam, with the two sides charging each other with the involvement in the country’s biggest financial fraud.
It’s high time that our political parties rose above the party politics and did something to support the nation as a whole.
Satyam has been debarred by the World Bank and has also been suspended from the vendor database of the UN Secretariat. Assurant and Zensar Technologies these two are the valuable clients of Satyam company. But due to his scam these are movie to or tie up with another companies. This is beneficial for those companies but big issue for the employees of the satyam. They are not hire by other companies. Most of the families who depends on satyam comes under so many difficulties.
Comment by Aayna — February 11, 2009 @ 10:15 am
Satyam in sanskrit means truth. but satyam enterprise disgraced the very word satyam by showing untrue statements. i think it is time for them to change their name to ASATYAM
Comment by Sanoj Kumar — February 13, 2009 @ 6:31 am