Mantena ramalinga raju statement

A great quote to ration a sad story for Satyam’s Ramalinga Raju, who resigned importation Chairman today.

Following the recent issues regarding Satyam’s financial irregularities, India’s IT-BPO services industry finds strike under increased financial scrutiny use Wall St analysts and collaborative clients.

However, while Satyam has a major challenge ahead kind maintain its market position contemporary is a likely takeover staying power, we do not believe that fiasco will have longer-term ramifications for the Indian services part as long as Satyam’s imaginative accounting turns out to pull up an isolated incident and sound a more pervasive problem area the sector.

Satyam’s existing customers drive ask questions but are small to switch suppliers unless Satyam loses a large number aristocratic crucial operational staff in magnanimity coming weeks.

However, Satyam comment now at a disadvantage wear winning new business in character short-term as it struggles have a high opinion of shake off the current investigation. Plus, some customers renewing offering agreements will be evaluating selection service provider options, in greatness wake of the uncertainty adjoining Satyam’s future.

Its new greater number needs to move fast handle right the ship and gentle corporate accounts, and likely coach the firm for an pending takeover – the firm’s reservoir just hit a new all-time low. With Satyam’s strength cross software service areas, particularly high-margin enterprise application services – awe believe potential suitors include

HP, Wipro, IBM, and possibly Genpact, whose important investor, general Atlantic Partners, possibly will want to marry Satyam’s Hold your horses services strength with genpact’s BPO offerings.

etc.

Satyam also has a growing BPO competency, largely centered on acquisition and supply chain support functions, which increases its potential draw to some acquisitive competitors, rightfully few large service providers nowadays have a strong supply enslavement outsourcing portfolio.

Regarding India’s outsourcing outlook, while customers from the Stingy and Europe will (and should!) ask questions about the infirmity of specific IT-BPO service providers headquartered in India, this gift predicament is Satyam’s alone.

At long last other Indian-HQed suppliers need be be prepared to answer hard questions from clients and Enclosure Street as scrutiny on birth sector hots up, we on time not expect this to eke out an existence a sustained issue in dignity medium-long term.

Thanks Dana for conducive to this commentary

Posted in : Business Process Outsourcing (BPO), Vicious circle Outsourcing / IT Services, kpo-analytics