Wednesday, January 07, 2009

Satyam Defrauded Investors and 631 Customers

Satyam Defrauded Investors and 631 Customers

"Satyam customers need to move swiftly in evaluating how the Indian outsourcer's newly revealed financial fraud will impact their own IT operations, say analysts.

In a bombshell disclosure, Satyam founder and chairman B. Ramalinga Ramu quit Wednesday, admitting in a five-page resignation letter that the company had been meticulously inflating its financial figures for years."

The article says that 631 firms were Satyam customers.

Now 631 firms mostly American can bring those outsourced jobs back home to America.

No organization wants to be associated with frauds. It puts 631 clients at risk. Will Satyan go bankcrupt? What happens if Satyam does not pay its bills to its employees and others. How much risk if clients had mission critical projects at Satyam? Employees do not want to jeopardise their futures at criminal employers so there will be an exodus of the best Satyam employees, if not most of them. The clients should judge how much of their investment at Satyam is already lost in human skills an experience, software already missing, documentation lost, data lost, and hardware misplaced or stolen.

Local, county, state, and federal representatives should visit the 631 customers of Satyam and present the hire American position to them. I am sure many of the 631 customers would be willing to listen.

631 Satyam customers reaching out to other outsourcers in India will pay very high prices because they have no advantage in bargaining. And if Satyam was a bad apple in that barrel in India, how many other bad apples are there too.

Satyam H1B visa holders in America should be returned back to their home countries. Their employer is in serious jeopardy and if Satyam goes bankcrupt who will be stuck with past wages and their airfare back to India?

Executives at American big business, you tried to save expenses by outsourcing overseas and lost, now do the right thing and re-establish those jobs in America with American workers. American customers of Satyam have egg on their faces and are embarrasses and the best way to elliminate the egg and embarrasment is to hire American. To do business with Satyam was a bad mistake for executives because the company turned out to be a fraud.

I am sure American executives already with economic headaches do not need the additional headaches and risks of Satyam fraud.

Satyam customers bring those jobs back to America for Americans.