A couple of days ago on this blog I remarked on Satyam and the consequences of the revelations there. Now the speculation is growing – the first question is will Satyam survive? That will be down to two factors, firstly liquidity – can it keep the bills paid? – and then if that hurdle is passed will the customers stay? Already the observers of the IT world Gartner and Forrester are suggesting courses of action to the clients, all focused on management of risk. One hopes that the clients had built this in to their business continuity plans! It does question just what level of knowledge and competence is placed externally to your organisation and how you manage that. Interestingly where outsourcing is maintained onshore within the UK well thought out contractual components usual include the capability to reclaim key individuals moved under TUPE.
Whatever happens there is bound to be some form of fallout – and the betting would be on two routes, either transferring to the other big Indian based suppliers of TCS, Wipro or Infosys or if concerns exist about the whole corporate governance experience in India transferring to Accenture or IBM who have big operations in India.
It’s too early to tell but what is certain is that the reverberations of this scandal will take some time to settle.