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Satyam recalls 1,500 onsite staff as clients call off contracts
By
SiliconIndia,Wednesday, 18 February 2009, 00:00 Hrs
New Delhi: As clients cancelled contracts with troubled Satyam computers, more than 1,500 employees of the company working overseas have been called back to India. Followed by 
7,800 crore scam in Satyam, many foreign clients have terminated their contract with the company, reported The Economic Times.
About 170 employees who were working for State Farm Insurance, an Illinois-based insurance company, have already returned to Satyam headquarters in Hyderabad, as State Farm Insurance terminated the contract with Satyam. Most of the employees were technical and support staff that were involved in delivery management and support. "The disengagement took place in an abrupt manner. Satyam staffers were not allowed to access the computers and their belongings after termination of the contract," said a Satyam executive.
According to the company executive, some other larger clients such as Philadelphia-based Cigna Corporation, Melbourne-based Telstra, Sydney-based Qantas airlines and Atlanta-based Coca-Cola have also started disengaging from the company, resulting in over 1,500 employee redundancies across Satyam's onshore operations in the U.S. and Asia Pacific. Satyam gets more than $300 million revenue from these four clients.
Indicating further cost-cutting measures in future, another senior executive of Satyam said that there would be a lot of restructuring as business overseas has been severely impacted and hence workforce rationalization is definitely on the cards. "Investments in training and development and infrastructure will be brought down significantly," executive added.
Employees, concerned over the future, have started to approach various employee organizations to resolve the problem. For instance, UNITES, an organization working for the rights of IT employees has received several queries from Satyam employees based in the U.S., U.K. and Japan about how they should go about finding a solution to the current crisis.
7,800 crore scam in Satyam, many foreign clients have terminated their contract with the company, reported The Economic Times. About 170 employees who were working for State Farm Insurance, an Illinois-based insurance company, have already returned to Satyam headquarters in Hyderabad, as State Farm Insurance terminated the contract with Satyam. Most of the employees were technical and support staff that were involved in delivery management and support. "The disengagement took place in an abrupt manner. Satyam staffers were not allowed to access the computers and their belongings after termination of the contract," said a Satyam executive.
According to the company executive, some other larger clients such as Philadelphia-based Cigna Corporation, Melbourne-based Telstra, Sydney-based Qantas airlines and Atlanta-based Coca-Cola have also started disengaging from the company, resulting in over 1,500 employee redundancies across Satyam's onshore operations in the U.S. and Asia Pacific. Satyam gets more than $300 million revenue from these four clients.
Indicating further cost-cutting measures in future, another senior executive of Satyam said that there would be a lot of restructuring as business overseas has been severely impacted and hence workforce rationalization is definitely on the cards. "Investments in training and development and infrastructure will be brought down significantly," executive added.
Employees, concerned over the future, have started to approach various employee organizations to resolve the problem. For instance, UNITES, an organization working for the rights of IT employees has received several queries from Satyam employees based in the U.S., U.K. and Japan about how they should go about finding a solution to the current crisis.
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Reader's comments (13)
1: Satyamites now is the time to show the world
that working here in your own country you can
change the face of India by making it "world
class".Your combined skillset will surely pay
dividends to the already defunct and mediocre
skillset presently in India.Work in India for
a better India.
Posted by: anoop singh gill - 22 Feb, 2009
2: Hi!
Satyamites don't follow your boss, do your work honestly and scam free. Atleast do something good for the nation this time.
Satyamites don't follow your boss, do your work honestly and scam free. Atleast do something good for the nation this time.
Posted by: Bharat - 19 Feb, 2009
3: Satyamites, its time to do some real hard
work now. Don't look for anybody's shoulder
to cry upon. Think about the small software
companies which have survived and are still
getting projects from overseas and believe me
they are getting very less salaries and doing
better work than you people. Have you
forgotten those days when you were paid
handsome salaries for doing nothing, sitting
on bench? It is because of you people that
the real estate prices shooted up. You made a
2 bedroom flat out of reach to a common man.
Forget about your so called self-prestige and
join any small company, leaving your ego
aside.
Posted by: Poonam Iyer - 19 Feb, 2009
4: Hello... I am concerned about the
unemployement of so many people of india..
its really unusual situation currently going
all over the world. Well Satyamites ...hope
so you all are in good shape. dont worry,
this IT boom had to fall some day, and that
day has already come. God Bless you guys. Try
to take all these things positively, and try
to find new jobs.
What is going to happen to the shares of Satyam?
What is going to happen to the shares of Satyam?
Posted by: Dhiraj - 19 Feb, 2009
5:Now the economic crisis is going down. And of
the companies DOWN SIZING. By this SATYAM
malpractices activity is not so well. In
india the UNEMPLOYMENT is in BOOM stage. So
the government should take proper action for
this SATYAM problem and other activity also.
And in my point of view to recover from
economic crisis is GLOBALIZATION.In share
market its not constant. The SATYAM company
creates a good name and thus it helps to buy
the shares by the publics.
Gopi.J replied to: Dhiraj
post - 15 Mar, 2009
post - 15 Mar, 2009
6: Fiscal irregalrity apart, Satyam was and is a
fine company. Its Quality of services,
customer satisfaction, delivery, employee
satisfaction, were all exemplary and as good
as the best in the industry. We need to view
the operations separate from the fiscal and
debt structuring etc. The operations were
generating good business and were profitaly
running the show. It was the investors money
which was mishandled. They would recover
eventually because the company was running
healthy operations and the staff were no less
competent than any company worldwide.
Now if you view this situation with that of a converse sitation, where there is no fiscal impropriety but the operations are inefficient, and the product quality is poor, resulting in heavy lossing and company going bankrupt. There are so many companies in every domain, including automobile banking steel cement IT etc. Investors loose money, employees lose jobs. And this would be attributed to poor management practices.
I feel that the new board and the new management should separte the operations management from the corporate fiscal mgt and proclaim its technical competence, service to customers and a very viable business operation. After all what the directors were doing behind the scenes was not known to either the technical staff nor the regulators. The techies are not to be blamed, nor should they be made to pay for the directors crimes. After the directors, it is the failure of the regulators and the auditors who failed. It is they who must be penalsied, not the techies who put in sincere and dedicated to the company.
I feel very strongly that a business is made viable by the operations giving a good return through the value of the services. The directors, ivestors and speculators benefit tremendously on the efforts of the techies and dump them after creating such a situation. Even Narayan Murthy mentioned that Satyam's quality of work and the workforce is very good. Let us stand up for the techies and find a way to prevail on the existing clients that their interests would not be compromised. ( in case the company was going under losses due to improper operations management, they would have been affected because the company would have collpased the services would have been terminated abruptly)
Now if you view this situation with that of a converse sitation, where there is no fiscal impropriety but the operations are inefficient, and the product quality is poor, resulting in heavy lossing and company going bankrupt. There are so many companies in every domain, including automobile banking steel cement IT etc. Investors loose money, employees lose jobs. And this would be attributed to poor management practices.
I feel that the new board and the new management should separte the operations management from the corporate fiscal mgt and proclaim its technical competence, service to customers and a very viable business operation. After all what the directors were doing behind the scenes was not known to either the technical staff nor the regulators. The techies are not to be blamed, nor should they be made to pay for the directors crimes. After the directors, it is the failure of the regulators and the auditors who failed. It is they who must be penalsied, not the techies who put in sincere and dedicated to the company.
I feel very strongly that a business is made viable by the operations giving a good return through the value of the services. The directors, ivestors and speculators benefit tremendously on the efforts of the techies and dump them after creating such a situation. Even Narayan Murthy mentioned that Satyam's quality of work and the workforce is very good. Let us stand up for the techies and find a way to prevail on the existing clients that their interests would not be compromised. ( in case the company was going under losses due to improper operations management, they would have been affected because the company would have collpased the services would have been terminated abruptly)
Posted by: Prabhu Hiremath - 19 Feb, 2009
7: As this move is expected from client side, it
is lesson for all IT giant BoE to work loyal
and true to their clients.No worries, Satyam
employees initially find difficult to enter
to other organization, but skilled employees
will find their way to survive.Let hope for
best.
Posted by: gana - 19 Feb, 2009
8: Technically well versed people can search
better than Satyam, like product based
concern who's having their own product.
That's it will improve his life also economic
crisis for certain limit....
Anyhow, our government should involve in this financial crisis to help our people.
Anyhow, our government should involve in this financial crisis to help our people.
Posted by: Kraaljaain - 19 Feb, 2009
9: They can terminate the people who have done
all this scams and secure the future of the
other employees by giving them different sets
of executives and chairman..
Posted by: Chaitali Chatterjee - 19 Feb, 2009
10: BEST IS FORM AN ONLINE COMMUNITY, FORM A
COMPANY OF YOUR OWN, RUN THE BUSINESS (LIKE
WORKERS' PARTICIPATION IN MANAGEMENT).
Posted by: SKS RAGHAVAN - 19 Feb, 2009
11: Best is change the name(Brand of satyam), so
that employees will be happy working.
Posted by: josh - 19 Feb, 2009
12: what is the fault of satyam staffers?.if they
work for another compony, will they be able
to put in their 100% efforts for the new
bosses? the chain will go on...
Posted by: mahesh pade - 18 Feb, 2009
13: Thing are getting worse at Satyam with
stories about the company's dire strait are
pouring in. The big concern is future of
employees.
Posted by: Darshan - 18 Feb, 2009
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