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Satyam announces cost-cutting measures

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CIOL Bureau
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BANGALORE, INDIA: Satyam Computer Services, which is struggling hard to make it survival possible following the recent multi-crore financial scandal, today announced cost-cutting measures to tide over the financial crisis in the company and meet the challenges posed by the global economic slowdown. The measures include relocating onsite support staff.

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"As a policy, the pre-sales, solution architect, delivery and operational support personnel will be located in the low-cost countries,” Satyam's new CEO A S Murthy told employees.

He also said all units have to reduce non-billable domestic and international travel considerably in the present scenario.

Murthy said these measures were necessitated not just because of Satyam's bad financial situation, but are also relevant due to the larger economic slowdown.

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The company has also reportedly put a freeze on expenses relating to internal issues and and decided to terminate lease of several rented premises to provide a sizable saving.

Meanwhile, the Company Law Board, which is probing the fraud at Satyam Computer Services, has asked three former directors of the outsourcer to disclose their assets to the board by March 31, Reuters quoted a senior board official as saying.

Company Law Board chairman S. Balasubramanian told reporters the three former directors were Ram Mynampati, K.G. Palepu and V.K. Dham.

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No Bailout Plan

Acting Finance Minister Pranab Mukherjee said in Parliament today that the government has no plans to bail out Satyam.

“Let me make it clear that the government has no intention to bail out the company. The company has adequate assets if run professionally,” he said during a question hour in the Rajya Sabha.

The minister also brushed aside suggestions that the Andhra Pradesh Government was attempting to shield the perpetrators of the Satyam scam by interfering in the multi-agency investigations into the Rs 7,800-crore scandal.

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