Satyam Fallout Roils India, World
More problems for Indian IT: "In another blow to India's already-reeling technology industry, the World Bank disclosed it had barred two Indian outsourcing firms, Wipro Technologies and Megasoft Consultants Ltd., from doing work with the bank's headquarters."
Satyam scandal a "test case" for Indian regulators, says business prof.
The government's probe announcement follows its decision to sack the board of the company and replace it with three state- nominated directors last week.
At stake are the jobs of more than 50,000 employees at India's fourth-largest software company and the work it does for overseas clients, including ArcelorMittal, the world's largest steelmaker, and Telstra Corp., Australia's biggest phone company.
"The government cannot allow Satyam to plunge, as it will lead to the loss of jobs, hit foreign investment and the record economic growth," Bansal said. "The efforts at saving Satyam are aimed at actually salvaging the image of corporate India."The big trade association is fighting on the PR front:"While it is true that such incidents can and have happened in other industries and, indeed, in other countries, NASSCOM has been shocked by this isolated incident in an industry that generally represents the highest levels of corporate governance and transparency in the country. It has already constituted a task force to deal with this issue."
The Times of India runs an article headlined "Satyam fiasco won't tarnish Indian IT image." Readers are less certain.
Our readers weigh in: along with some woofing and politicking, they make some good points.
This book, which we excerpt in our coming print edition, is looking timely.