SATYAM Computers - A tale of 'a'satyam (A big lie)

In Telugu Satyam means 'Truth' and Asatyam means 'Lies', just in a span of 24 hours a big corporate name has became an ugly truth!

It is a big shock and spine-chilling fact that resignation of Mr. Ramalinga Raju, Founder and Chairman of SATYAM computers for every Indian IT company in the world.

Until 06th of January 2009 SATYAM Computers has a special (top) place in Indian IT Industry that can be termed as a financial fraud as "mind-boggling"! No doubt that and we must credit Mr.Raju that has worked hard over 2 decades to become the posterboy of India's Information Technology industry and less than two weeks to turn into the rogue who personifies all that is defective with the country's outsourcing industry due to the "the gap in the balance sheet has arisen purely on account of inflated profits" during several years which is termed as cooking account books .

Though I see in the Media that there will not be any problems for rest of Indian IT companies, it is a clear indication that Indian corporate governance standards have been put at stake here, the role of the auditors have also come under serious question. Whenever such a fraud happens in the Corporate world every other Enterprise in the international community will now take a harder look at Indian companies and think twice about placing their money there, after all Indian IT force is the backbone for many Multi-National Corporations and Gaints.

This is a 'hammer in head' for the IT market in this credit-crunch & Economic recession time that India's outsourcing boom has given way to slowing profit growth, as the credit crisis has hurt US and European firms.Almost half of this was generated by US companies, which are now showing signs of cutting budgets in the face of stricter lending conditions and a slowdown in consumer spending.

In next 2 days we will see where this will lead and plan of action by other Corporates that are depending on Indian IT force.