If you are a company using Satyam's services, would you continue with Satyam?
We all know what has happened with Satyam - India's fourth largest IT services company. There is tremendous amount of uncertainty and instability.
If you, your company has a project going on with Satyam, would you continue with Satyam, or would you rather start searching for some other partner? Would you rather go to a smaller service provider that would at least have more transparency and give you a lot more attention?
Answers (5)
FRANK F
—►YOUR FUTURE is MY BUSINESS —►Strategies + Keynotes + Seminars —►Innovation Economy 2010-2020
Best Answers in: Using LinkedIn (177), Organizational Development (62), Change Management (51), Government Policy (45), Economics (27), Ethics (21), Corporate Governance (20), Equity Markets (20), Mentoring (19), Staffing and Recruiting (18), Business Development (17), Career Management (16), Planning (15), Internationalization and Localization (13), Communication and Public Speaking (13), Internet Marketing (11), Education and Schools (10), Financial Regulation (10), Personnel Policies (10), Small Business (10), Business Analytics (9), Advertising (8), Professional Networking (8), Energy and Development (8), Sales Techniques (7), Writing and Editing (7), E-Commerce (7), Web Development (7), Manufacturing (6), Computers and Software (6), Job Search (5), Compensation and Benefits (5), International Law (5), Lead Generation (5), Project Management (5), Quality Management and Standards (5), Blogging (5), Accounting (4), Government Services (4), Offshoring and Outsourcing (4), Treaties, Agreements and Organizations (4), Search Marketing (4), Customer Service (3), Risk Management (3), Employment and Labor Law (3), Guerrilla Marketing (3), Public Relations (3), Customer Relationship Management (3), Currency Markets (3), Derivatives Markets (3), Futures Markets (3), Non-profit Management (3), Philanthropy (3), Social Enterpreneurship (3), Wealth Management (3), Professional Books and Resources (3), Starting Up (3), Green Products (3), Software Development (3), Certification and Licenses (2), Occupational Training (2), Resume Writing (2), Public Funding (2), Exporting/Importing (2), Events Marketing (2), Viral Marketing (2), Labor Relations (2), Bond Markets (2), Inventory Management (2), Personal Investing (2), Distribution (2), Market Research and Definition (2), Biotech (2), Enterprise Software (2), Facilities Management (1), Regulation and Compliance (1), Air Travel (1), Business Dining and Entertainment (1), Travel Tools (1), Freelancing and Contracting (1), Event Marketing and Promotions (1), Conference Planning (1), Conference Venues (1), Budgeting (1), Foreign Investment (1), Government Contracts (1), Health Care (1), Public Health and Safety (1), Criminal Law (1), Contracts (1), Corporate Law (1), Finance and Securities Law (1), Property Law (1), Direct Marketing (1), Mobile Marketing (1), Commodity Markets (1), Hedge Funds (1), Option Markets (1), Non-profit Fundraising (1), Packaging and Labeling (1), Individual Insurance (1), Personal Debt Management (1), Personal Real Estate (1), Branding (1), Industrial Design (1), Product Design (1), Pricing (1), Positioning (1), Business Plans (1), Green Business (1), Telecommunications (1)
No, I would switch to another service provider ASAP.
As I briefly read the story, their balance sheet was cooked and has been marked down by some 90%. How its books could ever have met any audit standards is beyond me.
In any event, the company's bankers and/or other lenders (which I assume it had) would thus be lending against vastly-inflated assets, revenues, net profits. Hence they are likely to be calling in loans and/or shrinking available lines of credit.
Hence the company will get squeezed and will not be able to deliver on any reasonable service standard.
Even if none of this is the case, you cannot risk staying with a company which has an organizational culture which lied to itself. You cannot trust them on anything. I would get out fast, before it potentially implodes and leaves you stranded.
Clarification added 10 months ago:
As I suspected ...
Satyam is finished. Burned toast.
It is basically illiquid, and likely to implode.
It has no cash to pay wages this month.
That may create opportunities for competitors.
But clients will do much more due diligence.
Meanwhile clients should abandon Satyam, ASAP.
When it implodes it will take others with it.
As well, the audit firm PWC could implode also.
David M
Managing Director of Sirleaf Pte Ltd and legal consultant. dmar9147@yahoo.com
Best Answers in: Using LinkedIn (17), Property Law (16), Criminal Law (11), Employment and Labor Law (11), Government Policy (9), Contracts (7), Corporate Law (7), Intellectual Property (7), Education and Schools (6), Compensation and Benefits (5), Business Development (5), Financial Regulation (4), Internationalization and Localization (4), Finance and Securities Law (4), Organizational Development (4), Blogging (4), Customer Service (3), Economics (3), Personnel Policies (3), International Law (3), Treaties, Agreements and Organizations (3), Writing and Editing (3), Corporate Governance (3), Distribution (3), Career Management (3), Communication and Public Speaking (3), Ethics (3), Professional Networking (3), Small Business (3), Starting Up (3), Information Security (3), Web Development (3), Car and Train Travel (2), Occupational Training (2), Event Marketing and Promotions (2), Tax Law (2), Internet Marketing (2), Graphic Design (2), Business Analytics (2), Labor Relations (2), Equity Markets (2), Non-profit Management (2), Personal Investing (2), Professional Books and Resources (2), Business Plans (2), Energy and Development (2), E-Commerce (2), Facilities Management (1), Purchasing (1), Freelancing and Contracting (1), Job Search (1), Mentoring (1), Budgeting (1), Public Funding (1), Venture Capital and Private Equity (1), Risk Management (1), Staffing and Recruiting (1), Exporting/Importing (1), Events Marketing (1), Sales Techniques (1), Search Marketing (1), Change Management (1), Planning (1), Bond Markets (1), Currency Markets (1), Futures Markets (1), Philanthropy (1), Packaging and Labeling (1), Project Management (1), Quality Management and Standards (1), Personal Real Estate (1), Wealth Management (1), Engineering (1), Product Design (1), Biotech (1), Enterprise Software (1), Computers and Software (1), Computer Networking (1), Information Storage (1)
Unlike Frank, I would distinguish between the board room culture and the operational side of the business. The fact that one or more members of the board have been acting in a way that appears potentially criminal, should not reflect adversely on the thousands of employees who, everyday, provide good service to their clients. To take business away from a company is to punish the employees for the crimes of their leaders. This is inequitable. Further, there is no guarantee that any other service provider is any more honest in the way it manages the preparation of its accounts for stock exchange or tax purposes. If clients are satisfied with the work done by the assigned staff, the invoicing seems consistent and the amount charged is affordable, they should stay with Satyam.
The biggest risk to any of Satyam's customers will be the status of ongoing project execution and meeting of delivery time lines; in terms of the continuation of deployed resources and management commitment.
Considering that a large scale financial misappropriation has been unearthed in this event, Satyam may find it difficult to keep the employees on its payrolls due to inability/delay in salary payments, poor employee morale, large scale attrition etc. Even though management commitment towards ongoing projects is being guaranteed by the new interim management, we need to see how this will work out in the short to mid term.
John S
Insurance and Technology Senior Executive
Best Answers in: Enterprise Software (3), Computers and Software (1), Software Development (1)
Any services firm has one thing to sell and only one thing - its reputation. Without a reputation of ethical behavior, honest dealings with vendors, customers, and employees a services firm will not win desirable business, will not earn the margins needed to grow, and will generally underperform, costing it highly valued employees and clients.
Frank is correct. Satyam is now in a death spiral and its only hope is to find a company that it can merge with quickly. It will not be able to go it alone for very long.
John Sarich
jsarich@ceoexpress.com
John W
Chairman & CEO at Antimonious plc
Best Answers in: Sales Techniques (2), Business Analytics (2), Risk Management (1)
Satyam obviously did/does great work as evidenced by their outstanding client list.
I'd look to assemble a group of investors comprised of happy clients and buy the company, clean out the rogues and move forward.
