Big clients to desert Satyam

New Delhi: Satyam Computer Services' wound is getting more septic by the day. In a latest development, the company's major clients such as General Electric (GE), Nestle and British Petroleum, have started deliberating on moving work to other outsourcing vendors, reports The Economic Times.

GE is learnt to be weighing the options of inducting the Satyam team working on its IT project or convincing other IT vendors to merge this team with their resources to ensure continuity of work. Satyam's bigger rival Tata Consultancy Services (TCS) already provides services to GE. Talks are on in this regard, says sources.

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A Satyam's client since 2004, food major Nestle had extended its engagement with Satyam in 2007 for another three years, landing it a new multi-million dollar contract. The Switzerland-based company says the guarantee Satyam offered on normal continuation of services is not resting assured. "Alternative solutions are being considered and no disruption of Nestl's IT operations is expected," a Nestle spokesman said.

"Clients are evaluating options as their business continuity is at risk. Other suppliers are also working overtime to poach some of these marquee clients," said Nikhil Rajpal, principal, sourcing advisory firm Everest.

Satyam's clients such as British Petroleum have sought assurance from the Indian IT firm that their work will not be impacted. While Indian vendors such as TCS, Infosys and Wipro could bag more work from Satyam's customers, analysts say multinational outsourcing firms such as IBM and Accenture could use the financial scam at the Indian firm to their advantage.