What The Events At Satyam Mean For IT Service Providers

January 26th, 2009

Christopher Andrews VP, Research Product Management

Sudin Apte

With contributors:

Pascal Matzke , John McCarthy , Edward Radcliffe

Summary

In early January, Satyam sent shock waves across the IT services industry when its founder, B. Ramalinga Raju, revealed that he was responsible for deep accounting irregularities at the company. While the full extent of the fraud is still unknown, the events will have major implications for Satyam's own destiny as well as for the Indian technology services market as a whole. While many competitors are hoping to gain business from Satyam's misfortune in the short term, the reality is that only a few providers are strongly positioned to benefit. Savvy IT services providers will assess what the scandal means from a customer perspective and use this situation to position themselves in 2009 and beyond.

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