Raju asks Satyam techies for 'continued faith'
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Raju asks Satyam techies for 'continued faith'

Wednesday, 31 December 2008, 04:13 Hrs   |    2 Comments
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Bangalore: Satyam Computer Services founder-chairman B. Ramalinga Raju Tuesday told his employees to beware of "wild speculation and unchecked rumours" following the Maytas' deal fiasco.

"Please be assured that the board and the leadership team are doing everything possible to get Satyam back on track. We cannot do this without your help, however. I ask for your continued faith in Satyam and for your steadfast focus on your customers, especially in the face of wild speculation and unchecked rumor," Raju said in a letter to his over 50,000 employees.

Admitting that events of the past two weeks had raised many questions, especially on the viability of the company's business strategy to diversify and the effectiveness of its corporate governance, Raju asserted Satyam did not and does not intend to retreat from IT and BPO (business process outsourcing) services in any way.

The company would focus exclusively on these markets, he said.

"We are committed to the IT services and BPO business as it has been since the company's inception in 1987. While the idea that we could diversify into an unrelated business was rejected by our investors, it was formed with the belief that doing so would not imperil our leadership in our core business or lessen our commitment to it, and that all stakeholders would benefit," the letter stated.

On corporate governance, Raju noted that the board arrived at a decision to bid for Maytas by following all required processes and procedures. While there was a spirited discussion among members, their vote to approve the motion was unanimous.

The chairman also flagged to his techies about the company winning numerous awards for excellence in corporate governance, including the Golden Peacock Global Award for Excellence in Corporate Governance on two separate occasions, with the most recently being in 2008.

"Over the past two weeks, we have been communicating these facts to our customers, and I'm pleased to report that customers continue to show a high level of trust in Satyam," Raju said.

Referring to the loss of investor confidence in the management, Raju said the company had taken steps to regain their confidence.

"The steps include strengthening the board by changing its size and composition, and engaging DSP Merrill Lynch to provide strategic advice and options," he added.

The board will meet Jan 10 to consider the options and chart a course of action to boost stakeholders' confidence.
Source: IANS
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Reader's comments(2)
1: Its is not the solution that employees are looking forward to. To invest in MAYTAS is not good, to be precise not at this time when the indian economy is down. And also the proof provided for the investmentin MAYTAS, is no where related to the truth. Keeping only 8% of the share and not considering the shareholders into mind while taking such a big decision is not good, in fact it is pure mistake done by Mr Raju and other executivedirectors and also by the 9 -independent directors (Foreign Institues).
Posted by:vinay satyanarayana - 30 Dec, 2008
2: it was a good move by raju to assure it semployees as they may start losing confidence
Posted by:ainida - 30 Dec, 2008