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Big clients pledge to stay with Satyam

In a news that could bring cheer to Satyam employees, three of their big clients Nestle, Nissan and CIBA who were on wait and watch mode have assured to continue business with the firm.
By HT Correspondent | PTI, New Delhi
UPDATED ON MAY 03, 2009 03:03 PM IST

In a news that could bring cheer to Satyam employees, three of their big clients Nestle, Nissan and CIBA who were on wait and watch mode have assured to continue business with the firm.

"Clients such as Nestle and Nissan has already expressed confidence in the company and had assured us that they will continue with us," an official privy to the development said.

Nestle have also given some additional business to Satyam last month, the person added. One of the multi-million dollar SAP client of Satyam, Nestle, which was earlier keeping a tab on the developments.

Analysts had feared that post the acquisition of the firm by Tech Mahindra clients of Satyam who were sitting on the fence would jump to other vendors. However, post the acquisition some of the companies had expressed confidence in the entity and pledged to continue business with them.

Auto major Nissan for whom Satyam provides application management had also said they would continue business with the firm. The company has also got an endorsement from another SAP client CIBA. Moreover, UK, Switzerland and Germany who have earlier imposed some strict norms on Satyam employees for getting Visa have eased them.

Post the Satyam crisis, employees of Satyam were asked to be present in person and appear for visa interviews. However, now they have eased the norms and the employees need not be present for the interview in person.

Satyam Computers plunged into crisis after its founder B Ramalinga Raju in January admitted to have cooked the books of the company for year.

In April, IT firm Tech Mahindra announced to acquire a 51 per cent stake in the beleaguered firm for Rs 2,900 crore. Earlier, the government-appointed Chairman of Satyam Kiran Karnik had said that though some clients have left the company but Satyam have got some new work as well.

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