Posted by: imranadeel | January 13, 2009

Will Satyam Scam Affect Indian IT Business?

A somewhat passionate debate is going on over the Internet and LinkedIn about Satyam’s scam and its fallout on Indian IT business.  Here’s my response to one such question over LinkedIn.

I just went through a piece of news from World Bank on Reuters (http://www.reuters.com/article/ousiv/idUSTRE50B1JC20090112): They debarred the following Indian companies and their related entities from doing business with World Bank or any of its subsidiaries. 1- Satyam (debarred in September 2008; surprised?) 2- Wipro (debarred in June 2007) 3- MegaSoft Consulting (December 2007) Satyam and Wipro were debarred because of “improper benefits to bank staff”. While Wipro was debarred from June 2007, we haven’t seen much change in Indian IT landscape. This Satyam scandal certainly leaves a big mark, but I don’t think it’s gonna do great deal of damage. There still are large captive centers of major foreign companies in India, such as IBM, Microsoft, Intel, HP, Temenos, Texas Instruments, and many many more. These organizations cannot roll themselves back from India because of such a scandal. And wherever these organizations are in business, the industry just won’t die over there.

So I think that while some new projects and contracts may go to Brazil, China et al, India will still maintain its position on the IT map.

Imran.

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