Since May, Satyam Computer Services has added 32 new clients, indicating that a turnaround in the scandal hit company has started. All in all Satyam now has about 430 clients. The company will not reveal how much the new business is worth, even though it is said that the most of the deals are of a duration of between three to five years. The new clients are from the US, the Asia Pacific region and Europe. They are well on the path to recovery and although they are not at the same level as in January, they are getting there.
However, by adding a new clients may not add up to much doe Satyam’s overall business. Most of the new clients start with the contracts about US$200,000 and scale up much later. There is also a high churn rate in a new clients. One thing more, signing up new clients, Styam is also receiving a new business from existing clients who had off new business to company during the crisis. Some of the clients that had dropped Satyam as a supplier during the crisis are also considering using Satyam again.
In January after its founder B. Ramalinga Raju, the Indian outsourcer was plungedinto a crisis because the company’s revenue and profits had been falsely reported for a several years. A number of customers stopped doing business with the company, while some others cut doen on giving a new business to the company. To revive the company, a board that was appointed by the Indian government in January decided to induct a strategic investor in the company through an auction.
Through an investment subsidiary, Indian outsourcer Tech Mahindra was selected in April. It is now holds a 43 percent equity in Satyam. The company has also adopted Mahindra Sataym as its go to market brand to reflect the new owners. The company starting next month will pay performance based components of their employees salaries which had been suspended in April. This is a variable pay which is largely based on the performance of the company, it was between 10 to 30 percent of an employee’s overall salary. One of the first decision of the government appointed in January was to order a restatement of the company’s accounts. The company has asked the government for an extension until next March for the competition of the restatement.
Outsourcing emphasize the world, it helps many human being. It gives an opportunity and chance to all people especially who are loack of knowledge but has a good skill in speaking. Outsourcing has lots of opportunity wherein business and people can get it if they work hard for it.
REFERENCE:
http://www.pcworld.com/businesscenter/article/172078/indian_outsourcer_satyam_adds_32_new_clients_since_may.html
http://socialcloudcast.com/cloud/indian-outsourcer-satyam-adds-32-new-clients-since-may/
