Satyam Outsourcing Game Revealed

In recent day it become news that Satyam Computer Services about admitting to fraud by company chairman B Ramalinga Raju, This new has effected some of the big corporate names in Australia with contracts worth millions. This would have to be a big blow to the outsourcing industry that takes all the work of shore purely to save money. Will the money that was saved now come and bite their ass?

Foreign funds were key to a bull run that saw India's market rise by six times between 2003 and 2007. The benchmark index fell 54 percent in 2008, its worst year ever, after foreign funds withdrew more than $13 billion.(Reuters Uk,2009)

Well all I can really say is they got what they paid for. The lesson here is if its to good to be true then it probably is. The use of underpaid overseas workers may seem fine but I would think in this case social justice has been served to the companies who are scrambling to find alternative contractors to complete their projects.

Mr Raju must have known that at some time he will be caught out. With the position he held you would say that the man was no dill. The fraud was not only the over inflation of the company figures but also to the employees who number 53000 world wide and their customers.(SunHerald.com, 2009)

Reuters Uk,2009,Satyam not seen scaring foreign investors off India,9th January 2009,from http://Uk.Reuters.com/article/partiesNews/idUKTRE50820F20090109

SunHerald.com,2009,Telstra, NAB stunned by $1.8b Satyam Computer rort, 9th January 2009, from http://www.news.com.au/heraldsun/story/0,21985,24889172-664,00.html