As Scandal Rocks Satyam, Rivals May Pick off Clients

A $1 billion fraud at Satyam Computer Services puts the Indian outsourcing firm’s future in doubt, but could be a boost in troubled times for local and global rivals if they can lure away worried clients. Satyam founder and chairman Ramalinga Raju has quit after disclosing that profits had been overstated for years, raising questions about the survival of India’s fourth-largest software services exporter. Local rivals Tata Consultancy Services (TCS) and Infosys Technologies are among those who could pick up defecting Satyam clients. Among foreign vendors, Accenture and Cognizant, which have large offshore centers and already serve Satyam clients such as Kimberly-Clark and Telstra, would also benefit, analysts said.

[Source: Reuters]