Satyam Computer Services Ltd Is A Stinking Pile of Dung
Satyam Computer Services Ltd Is A Stinking Pile of Dunghttp://www.bloomberg.com/apps/news?pid=20601087&sid=aJ3Az1Gk7TXI&refer=home
"Jan. 10 (Bloomberg) -- Satyam Computer Services Ltd. chairman Ramalinga Raju and his brother Rama were arrested and the remaining directors of the software exporter sacked, as India started investigating an alleged $1 billion fraud.
The brothers were detained on charges including forgery, breach of trust and criminal conspiracy, Inspector General V.S.K. Kaumudi told reporters in the southern city of Hyderabad.
Officials have seized documents and the nation’s accounting body is examining auditor PricewaterhouseCoopers LLC’s local unit, Corporate Affairs Minister Prem Chand Gupta said."
It appears that it was easy for Satyam chairman and his brother to be detained on charges including forgery, breach of trust and criminal conspiracy. How many other Indian outsourcing companies are also guilty of charges including forgery, breach of trust and criminal conspiracy? When there is one, there are usually many more.
It remains to be seen whether or not Satyam has enough cash on hand to pay its bills especially payroll because nobody wants to work for free. The Indian aliens working in America do not want to be stuck in America without relocation expenses back to their home countries paid for by Satyam. It also remains to be seen how many of the 631 customers will remain with Satyam. It does not take a genius to see that when a customer leaves, then the jobs associated with that client are elliminated also.
Satyam employees should protect themselves and find work elsewhere. There are many more honest companies than dishonest ones like Satyam.
Satyam customers should have already made their risk assessments and should be implementing their plan to minimize risks with Satyam. American companies do not want to be part of the fallout from the illegal practices of Satyam.
Customers have a lot to worry about. As Sayam employees leave then project due dates get pushed forward in time and quality is lost. Some Satyam employees may sabotage work and physical assets to show their dissatisfaction. If Satyam goes bankrupt then all client assets may be lost.
Satyam direct competitors in India are already probably eating Satyam's lunch stealing customers and employees. Many American customers can probably use the chaos to replace the Satyam employees they hired in America or India with Americans to work in America.
posted by God Bless America - Bob @ 6:30 PM
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