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Satyam could fail, InfoWeek says

You might have noticed Caterpillar among the raft of big companies that outsourced IT work to Satyam, the Indian company whose shares have been blasted because the company lied repeatedly about the scope of its earnings. Satyam paid Cat $60 million for a small chunk of its IT business last year; Cat of course used the proceeds to hire Satyam to do work previously paid at Western rates. Now Information Week reports that Satyam may not survive the inflated-earnings debacle.

Gartner said it believes that Satyam’s accounting scandal, which has been dubbed India’s Enron, will make it difficult for the firm to compete going forward.

“In the current economic environment, enterprises consider financial indiscretions by any business intolerable; we believe this will severely handicap Satyam when prospective customers are evaluating potential partners,” Gartner said in the report, which was published last week.

I went to all this trouble crafting this post so I could say: sometimes you get what you pay for.

(File under “Schadenfreude”: “largely unanticipated delight in the suffering of another which is cognized as trivial and/or appropriate.”)

2 comments | Permalink | Tags: ,
Tom Mangan posted at 7:28 am January 13th, 2009 |

2 Responses to 'Satyam could fail, InfoWeek says'

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  1. Greg Pedersen says:

    Regarding your posting about the ‘Indian Enron’, called Satyam.
    I worked in CAT I/T as numbers of Satyam employees (as co-workers) exploded over the last 5 years or so. As I became good personal friends of 4 different Indian citizens working for Satyam I learned that none of them had much good to say about Satyam; except that they hoped they could use Satyam as a stepping stone to a better job. The word satyam means ‘truth’ in Hindi or in Sanskrit. All of the Indians I worked with used to make fun of or laugh at the name Satyam and state that, to them, satyam meant ‘lies’. I know that 2 of my 4 friends resigned Satyam after finding better companies to work for. I have lost track of the other 2.

    Permalink | Posted January 15th, 2009, at 12:24 pm
  2. Surprise: Caterpillar wants nothing to with Satyam | Cat Stock Blog says:

    […] Previously: Satyam could fail, InfoWeek says no comments | Permalink | Tags: Satyam, Technology Tom Mangan posted at 7:16 am January 28th, 2009 | […]

    Permalink | Posted January 28th, 2009, at 7:17 am

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