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Archive for the ‘Satyam’ tag

Surprise: Caterpillar wants nothing to do with Satyam all the sudden

Caterpillar, which I presume has lots of company in this regard, now wants out of its relationship with Satayam, the disgraced Indian outsourcing firm, according to one report.

The company may terminate the contract on stability concern after some key employees engaged in the project left Satyam, the newspaper reported.

Cat officials are mum (another surprise).

Previously: Satyam could fail, InfoWeek says

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Tom Mangan posted at 7:16 am January 28th, 2009 |

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.”)

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Tom Mangan posted at 7:28 am January 13th, 2009 |