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Rivals may steal clients

A Rs-7,000 cr fraud at Satyam Computer Services may have put the outsourcing firm’s future in doubt, but could be a boost in troubled times for local and global rivals if they can lure away worried clients.

india Updated: Jan 08, 2009 20:35 IST

A Rs-7,000 cr fraud at Satyam Computer Services may have put the outsourcing firm’s future in doubt, but could be a boost in troubled times for local and global rivals if they can lure away worried clients.

“Satyam is way too risky a deal. Clients will walk. Key employees will walk,” analysts at broker First Global wrote.

Tata Consultancy Services and Infosys Technologies are among those who could pick up defecting Satyam clients.

Among foreign vendors, Accenture and Cognizant, which have large offshore centres and already serve Satyam clients such as Kimberly-Clark and Telstra, would also benefit, analysts said.

Satyam’s major customers include General Electric, Nestle, Qantas and Fujitsu. “At this stage, Qantas assesses any risks to business as manageable,” the Australian airline said, adding, it would monitor the situation daily.

Customers have been assured that it was “business as usual”. “This is a ‘must’ for Satyam, but not enough to restore customer confidence,” said Avinash Vashistha, chief executive at consultancy Tholons. “Such an incident will definitely erode customers over a period of time.