Satyam Scandal Possibly Coming to a Business Near You
Categories: News
Ever heard of Satyam?
This Indian computer business provides outsourcing services for a third of the Fortune 500 companies -- and it's a fraud.
In an astonishing admission, the company's boss admitted today that much of Satyam's earnings and assets have been falsified.
Businesses around the world are still digesting the news, which observers say could have wide-reaching effects for those that utilize Satyam and other Indian companies. This from the New York Times:
The revelations could cause a major shake-up in India's enormous outsourcing industry, analysts said, and may force many large companies
to investigate and perhaps revamp their back offices.
No sign yet if "India's Enron" will affect Arizona companies - there's still no word in the Republic about this, but business writers are probably working on a local version of the story.
Needless to say, companies ought to be peering closely at their "back offices." When a company is accused of planting spyware in its clients' computers and the CEO admits a billion dollars in assets don't really exist, maybe it's time to try insourcing.
Email to Friend
Write to Editor
Print Article
