Big clients plan to exit Satyam

NEW DELHI: Major clients of Satyam Computer Services, such as General Electric (GE), Nestle and British Petroleum, have started exploring alternative options such as moving work to other outsourcing vendors.

GE, the largest client for Satyam, is learnt to be evaluating 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. A source familiar with the matter said talks are on with other outsourcing vendors. Satyam���s bigger rival Tata Consultancy Services (TCS) already provides services to GE.

Replying to an e-mail questionnaire, a GE spokesman said the company has no comment to offer.

Nestle, the world���s largest food company, has been a Satyam client since 2004. In 2007, it extended its engagement with the Indian IT firm for another three years, landing it a new multi-million dollar contract. The Switzerland-based company says Satyam has guaranteed it normal continuation of services and it also has robust internal resources to provide it necessary IT support. However, it is not resting assured. ���Alternative solutions are being considered and no disruption of Nestl�����s IT operations is expected,��� a Nestle spokesman said in an e-mail.

Outsourcing analysts say clients are worried about continuity of their work being handled at Satyam where employees are looking for another job. ���Clients are evaluating options as their business continuity is at risk. Other suppliers are also working overtime to poach some of these marquee clients,��� sourcing advisory firm Everest principal Nikhil Rajpal said.



Satyam���s clients such as British Petroleum have sought assurance from the Indian IT firm that their work will not be impacted. ���We are seeking further information and assurance from Satyam that our services will not be impacted by the situation. We will also prudently consider what other actions may be needed in order to best safeguard our systems,��� BP group media director David Nicholas said in an e-mail.

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. ���We don���t rule out the possibility of MNC competition playing Satyam���s fiasco as a selling point against the offshore Indian players,��� brokerage firm Emkay Global Financial Services said in a note.