Satyam Scandal is a Huge Blow to Indian Tech

What an irony! Satyam in Sanskrit means Truth..What Raju represented was total falsehood. What should follow next is "Destruction" or Shivam. Expect that to happen next to this company.

Well imagine that. Another scam. The Chairman’s been cooking the books like a piece of Naan Bread and curried goat to make it all pleasing to the diners. It makes you wonder how many other companies are doing the same thing. Remember Enron?

Bobba
http://www.scamandfraudblog.com

Reputable corporations will quickly abandon satyam.

ohhhhh my god...............!!!!!!!
wad has happened.........

dis iz gonnna blow INDIA

I don't accept the observation that this one of a case will force the USA and European companies to outsource their IT outsourcing to India.I know it may sound naive,but please remember that one Satyam does not make the whole Indian IT industry.There are companies which have pioneered the ethics of corporate governance in India and companies in IT always lead the pack.Like all the incidences this will also pass and Indian IT will come out more stronger and more resilient.

The guy is greedy and it is evident in his business practices..he wud employ anyone without adequate skills and pocket huge profits by paying his

I'm not sure if an isolated incident like this should/will have an impact on the overall industry. Yes, there may be segmented pain for a short period and some necessary regulatory changes but it'll perhaps not be prudent to say that businesses will stop outsourcing to India because of this. In some ways, this is similar to the Enron scandal - that scandal, by itself, did not impact all companies in that space, right? Or for that matter, it'll be naive to say that the Madoff scandal is going to have serious repercussions on the asset management business - the business, by itself, has strong fundamentals...the regulatory framework needs to be re-looked

it's very shocking...........!
"king" turned to "theif".

There is a general sense of disbelief here in corporate India.

You're probably correct about the possibility of the company collapsing. Also, I don't think there are many that will want to acquire Satyam's "assets" now.

This is another scandal among many and this one comes from India. However, I do feel that this article tends to exagerate the repercussions on
India tech. Customers will not conclude that all vendors from India should fall in the same basket as Satyam. Actually, other vendors have a good chance to benefit from this if they play it well.

I guess without Satyam, Indian industry is left with the WITCH [Wipro, Infosys, TCS, Cognizant, and HCL] - no more SWITCH! Rahul Tongia

Steve, in your own words, if an industry stayed here for 20 years, I don't see why one mans /one bunch of investors greed will damage it badly. Also, with a strong new leadership, I dont see why Satyam itself cannot bounce back, if they manage to work without affecting the present engagements leaving behind the investor greed and focusing on the customers they have. Agree there may not be immediate new customers etc, but on the log run, I feel this is not impossible?

If revenue was inflated, were extra taxes paid to the governments where Satyam conducts business?

"The industry has spent 20 years building up credibility with Western clients, but this disaster will make many US and European clients rethink their reliance on Indian outsourcing."...I certainly hope so. The promise of offshoring is supposedly reduced costs at equal quality - and that has proven to be a myth every time I have encountered in in the last 20+ years. In fact, quality is poor (but better than it was in the beginning) costs are higher due to organizational friction and rework. Offshoring is short-sighted and fundamentally evil, it makes my country weak and dependent with the only reward being to satisfy corporate greed.

The guy Raju was greedy and quite ambitious to make Satyam on top of the chart.
But one company can't tarnish image of whole industry or Country. Enron, worldcom, madoff and other numerous examples are there. I think media is missing PwC here they should be first to blame to audit reports cooked by Raju. They tested his cooked Nan and declared it fit for all!!
I would have expected big companies to turn off their contracts with firms like PwC for audit.

Better check all Indian companies now before more tumble from the closet ...

There is another Hyderabad based company Prithvi Information Solutions that may be grabbing the spotlight for some very wrong reasons very soon.

At that point people may start assuming that the problem is endemic of Hyderabad and the Government of India will and must step in to clean up the mess - lest people assume that the mess is endemic to India