Satyam Computer Services has probably been the buzzword of the year gone by, albeit for unfortunate reasons. Satyam was one of the top most IT services company and shouldered the industry veterans like Infosys and Wipro. Who would have known what was cooking behind the glamorous walls and the highly profitable balance sheets.
Evidently Satyam was to become a part of one of the biggest Corporate Frauds in India.The man in charge, Mr.Ramalinga Raju evidently was cooking the books beyond recovery. We have had so much coverage here on the Satyam fiasco that there is no point going over it again. It all started with the Satyam-Matyas fiasco and then things got really ugly when Mr.Ramalinga Raju confessed his crime in open.
It opened the flood gates for the company and the in direct consequences had the Government stepping in. Eventually, Tech Mahindra ended up buying Satyam Computer Services and rechristened it to Mahindra Satyam.
There were speculations that Tech Mahindra might have made a mistake given that the clear financial details were very much under the wraps even then. Moreover, Satyam was no small fish, and Tech Mahindra would have had to really pull the plugs to make it work. The timing couldn’t have been worse as the global markets plummeted and IT budgets just vanished out of the blue.
However, cutting the long story short, Tech Mahindra has done a brilliant job of bringing the almost doomed company back on its feet.
The turnaround is even more spectacular given the industry Satyam operated in. IT services is a data sensitive industry, where confidentially and trust form the backbone of its sustainability. With the image that Satyam got itself, there were serious doubts that it will be possible to even restore the existing clients leave aside acquiring new ones.
But, Mahindra Satyam has risen from the ashes. Aided by an improving economy and some real brand building , Mahindra Satyam is finally getting into shape. The evidence stems from the fact that Mahindra Satyam is back in hiring mode.
It has called back 2000 of its employees which were relegated to the virtual pool.
Mahindra Satyam is clearly expecting increasing workload on account of acquiring new clients. More so, it is honouring the commitment made to its employees and looking to utilize the existing employee base before looking outside for hiring.
The new management board has indeed assed and executed the damage control meticulously and it is now aiming for growth. Infact, Mr.Mukesh Ambani cited Satyam’s turnaround as a great example of improving Corporate governance in India , during the show ‘The Politics of Economics’.
It is only the beginning and probably a lot needs to be done but the revival has been speedy and efficient so to speak. With improving IT spend forecasts, Mahindra Satyam would be gunning to regain its lost glory.
I remember there were news doing the rounds that Satyam Corporate Governance fiasco became a case study at one of the premier MBA schools.Wonder if Mahindra Satyam turnaround accounts for another case study on How To Revive A Maligned Brand
Who do you think should be credited for the quick turnaround of Satyam ?
An improving marketplace? – the strong technical fundamentals of the company? or the new management who steered the company? My vote goes for the management because it can be seriously daunting to chart growth plans and work towards improving the image of a company at the same time.