Govt tries diplomacy to save Satyam | business | Hindustan Times
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Govt tries diplomacy to save Satyam

Indian missions abroad are being roped in to launch a campaign to prevent termination and migration of clients in the wake of the alleged financial irregularities at the firm. Efforts are also on to retain the domestic clients with instructions being issued to public-sector entities to stay on with the firm, report Anupama Airy and Gaurav Choudhury. See special

business Updated: Feb 27, 2009 01:05 IST

The government has initiated a major diplomatic exercise to retain the big overseas customers of Satyam Computer Services Ltd.

Indian missions abroad are being roped in to launch a campaign to prevent termination and migration of clients in the wake of the alleged financial irregularities at the firm. Efforts are also on to retain the domestic clients with instructions being issued to public-sector entities to stay on with the firm.

“Any rejection of Satyam by government entities at this stage would not only cause embarrassment to the government but may unnecessarily alarm other Indian and overseas clients,” said a note prepared by the ministry of corporate affairs for a committee of secretaries.

Till early last month, Satyam was serving 690 clients including large MNCs.

The note said the external affairs ministry had already told Indian missions abroad to launch a campaign to assure clients of continued operation and support by Satyam.

“The increasing trend of customers moving out is causing serious concern, underlining the need for prompt decisions and action,” the note said. “There is a great urgency for demonstrating to the customers that funds have been tied up and that a clear and credible road map be agreed upon for sustainable management and operation of the company.”

Indian missions have also been told to remove misgivings about the country’s information-technology sector arising out of the Satyam scam.

“Indian missions should tell clients that the Satyam case is an aberration and despite the mismanagement of the pervious board, the company retains excellent technical manpower, who are all there,” the note said.