For Sourcing & Vendor Management Professionals (Length: 3 pages)

January 8, 2009

Satyam's Fraud Leaves Clients In The Lurch

Chairman Admits To Massive Financial Fraud; Customers Have To Assess Options And Exposure

by Sudin Apte, John C. McCarthy

with Stephanie Moore, Christine Ferrusi Ross, Elizabeth Rose, Sean Galvin


Executive Summary (This is a document excerpt)

On January 7, 2009, Satyam's chairman and founder, B. Ramalinga Raju, tendered his resignation and took responsibility for years of financial fraud. The scale of the fraud in terms of the overstatement of revenue, profit, and cash on hand is significant. The largest scandal in the history of corporate India calls into question the viability of the company as an independent entity. As a result, sourcing and IT executives need to actively review their exposure to the company and their options as a cloud of uncertainty hangs over the company. This review should include a portfolio assessment of all of the work Satyam is doing to understand what the potential disruption could be.

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Analyst: John C. McCarthy, Sudin Apte
Technology: IT Services, Sourcing & Procurement, Systems Integration, Vendor Management
Geography: Asia Pacific

Archived Teleconference:
Strategies For Dealing With Satyam's Demise
Original air date: Tuesday, January 20, 2009
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