Will Satyam fiasco affect Australian clients?

INDIA: Reacting to a statement "It was like riding a tiger, not knowing how to get off without being eaten," made by chairman of Satyam Computer Services, B. Ramalinga Raju in his confessional letter to the company's Board of Directors before resigning from his post yesterday, Jens Butler, principal analyst at global advisory and consulting firm Ovum said, "It is an eye catching line from Ramalinga Raju's statement, but the question is, should the tiger really have been ridden. It appears that this “gamble” has not paid off and may impact not only the Indian providers, but any externals – it will raise even greater trust and ethical questions in buyers’ minds."

"How will the Satyam fiasco affect Australian clients such as National Australia Bank, Telstra and Qantas will take some time to clear up. The Board has already set up a task force to assess the situation, but any contracts that are up for renewal in the near-term may be at risk of being handed to another provider," he said.

"Is this a takeover opportunity for some of the other Indian players or globals? Interestingly, it appears Tech Mahindra, the sixth largest joint venture with BT, has already approached Satyam. We expect some instability, mixed messages and lots of governance talk to come out over the next few weeks, but it would be best to just sit tight and hope that key operational staff to not leave/get poached," he added.