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Satyam getting new contracts: Murty

This article was posted on Feb 11, 2009 and is filed under Press Releases

Even as a few customers have left in the wake of the financial fraud committed by its erstwhile promoter, Satyam Computer today said it is continuously getting new software services orders and existing clients have showed faith in the company.

“A significant majority of our clients have indicated their support for Satyam, and are staying with us. Orders continue to come in, and the organisation is (making) efforts to grow new businesses,” Satyam Computer CEO A S Murty told PTI.

Asked if he visualises Satyam regaining its earlier position of the fourth-largest software exporter, the CEO said, “The board and senior management have been in constant contact with customers and associates to assure them of business continuity. To this point, our efforts to provide clear, consistent and forthright communications are working.”

Earlier Infosys, TCS and mid-sized IT firm Infotech had said some Satyam clients have approached them. In January, State Farm Insurance Co of the US terminated its contract with Satyam. Its other key customers — GE, Nestle, Coca Cola, and National Australia Bank — had earlier said they would suspend new contracts given to Satyam.

On working alongside the rivals, Murty said, “We continue to compete for new businesses with Infosys and TCS and other companies in all the markets we serve.

“With a new management at the helm of affairs, Satyam Computer is also looking at long-term strategic options and reviewing its legal liabilities.

“My immediate short-term priority as CEO would be to initiate and continue measures that will instill confidence in all our stakeholders, customers, associates, alliance partners, vendors, etc. And to ensure business continuity.”

The CEO said his priorities are also to address key customer concerns, focus on delivery, reinforce associate confidence and introduce key retention measures.

With Satyam’s market value plunging to less than $700 million from $7 billion in May 2008, the company is weighing long-term strategic options.

“Our other priorities are evaluating long-term strategic options, assessing and managing legal liabilities and resuming investments in identified areas,” Murty said, adding the company recently got a financial commitment of Rs 600 crore for working capital needs and has receivables of up to Rs 1,700 crore.

BK Modi’s Spice Corp and L&T Infotech, which is a 12 per cent shareholder, are among the possible firms interested in taking over the scam-hit company.

source: business standard

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