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Thread: Satyam (India IT outsourcing Co.)chairman admits he cooked the books

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[quote=COOLSPRINGS,359851]Satyam - Sanskrit for "truth" - was quickly dubbed the Enron of India. It is India's fourth largest outsourcing firm after Infosys, TCS and Wipro. Raju, 54, founded the company in 1987 and grew it to 53,000 employees with branches in 66 countries. His younger brother, Rama Raju, who was managing director, also resigned.

Raju said the fraud started years ago and had ballooned to unmanageable proportions as the company grew.

"Every attempt to eliminate the gap failed," he wrote. "It was like riding a tiger, not knowing how to get off without being eaten."

Sandra Notardonato, vice president and research analyst at Gartner Invest in Chicago, said it's a "no brainer to say that prospective clients will go elsewhere for their business. The existing clients are the question mark. A lot of their work with Satyam is on a contractual basis; moving or disrupting an outsourcing agreement to go from one company to another could be a challenge."

Satyam's 690 clients also include Nestle, Caterpillar, Nissan Motor Co., Ford Motor Co., Sony Corp. and Qantas, according to press reports. The New York Times said Satyam works for more than one-third of the Fortune 500 companies.

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