Published March 4, 2009

Business as usual here for Satyam, says new CEO

Singapore customers have so far been supportive, he adds

By ONG BOON KIAT

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SINGAPORE customers locked in contracts with fraud-hit technology outsourcing firm Satyam Computer Services can expect 'business as usual' in the months ahead.

Mr Murty: 'We have not lost a single customer in Singapore'

AS Murty, the Indian firm's newly appointed chief, flew in this week to deliver this pacifying message in a whirlwind meeting with a dozen key customers here.

While the embattled IT services company has had to borrow US$130 million from banks as working capital, and faces an uncertain fate as it prepares to sell a stake to investors, Mr Murty said Singapore customers have so far been supportive.

'We have not lost a single customer in Singapore,' he said yesterday at Satyam's newly fitted-out 30,000 sq ft office at Changi Business Park.

There has also been no customer attrition in the Asean region, he added. In fact, Satyam is on the verge of signing a new deal here.

Seemingly bucking the negative fallout from its financial scandal, Satyam reported earlier that it has bagged US$250 million of new deals.

The deals came in the aftermath of a Jan 7 admission by Satyam founder Ramalinga Raju that he cooked the books - a US$1 billion fraud that sent shockwaves though the company's customer base, which includes one third of all Fortune 500 companies.

While several clients dropped Satyam after the scandal, most have stood by it, according to the company.

Satyam reportedly has more than 400 clients in Singapore. They include major government agencies, local banks and multinational corporations. One high-profile customer is said to be Singapore Airlines.

Mr Murty said yesterday his top priorities as CEO include retaining customers and key people.

'What do I need to do? Talk to customers and retain customers, because if customers are standing by, then everything is possible,' he said.

Satyam's foundations in Singapore and other regions are 'still quite strong', he added.

Apart from 'normal attrition', the company's Singapore staff strength of around 400 has remained intact.

Singapore is one of Satyam's major operating locations outside its Hyderabad home base. Singapore serves as headquarters for the company's operations in the Asia-Pacific, Middle East, India and Africa.

'Singapore plays a key role in (Satyam's) stabilisation efforts because it is the nerve centre of our efforts to grow our business in this critical region,' Mr Murty said.

Satyam, which is expected to name a new investor and stakeholder six weeks from now, has a global work force of about 53,000.