Satyam Computers regaining Customers faith after biggest scam

Satyam Computer Services Ltd, the company at the center of India’s biggest corporate fraud probe, is regaining customers after its takeover by Tech Mahindra Ltd, Chief Executive Officer Chander Prakash Gurnani said.

“The company is now focused on growth,” Gurnani said. “Overall, the feedback from the customers is excellent.” The former head of international operations at Tech Mahindra was appointed at Satyam by the Pune-based software-services provider last week.

Gurnani, 50, has vowed to improve corporate governance and ties with customers as Satyam tries to win back business lost to rivals including Infosys Technologies Ltd after a $1 billion fraud. Satyam shares have rallied 64 per cent since Tech Mahindra won control at an auction in April.

“The most important thing is to reassure clients that the continuity of business will not be lost,” Rajesh Balasubramanian, analyst at Chennai-based Spark Capital Advisors Pvt said. “He needs to convince them that he has the balance sheet capacity for Satyam to pay the salaries.”

Retaining customers
Gurnani, a former chief operating officer and founder of the Indian unit of Perot Systems Inc, has to reassure customers Satyam is a supplier they can rely on, especially given the current global recession, Balasubramanian said.

“This challenge has been partly addressed by the takeover but we still keep hearing stories about Satyam losing clients,” he said. “If the world were a very hunky-dory place they might be able to pull it off, but with everybody cutting budgets, Satyam may be at the losing end.”

Satyam lost contracts from about 46 customers to rivals such as International Business Machines Corp and Tata Consultancy Services Ltd. Applied Materials Inc, Nissan Motor Co, Sony Corp and Telstra Corp are among companies that have moved or are in the process of seeking other vendors, the newspaper report had said.

Read entire story here..