Nasscom may ban Satyam from its membership

Nasscom may ban Satyam from its membership

The National Association of Software and Service Companies (Nasscom) may look at banning Satyam Computer Services from its membership. This comes in the wake of Satyam founder & chairman B Ramalinga Raju admitting that the company was doing misappropriation of its accounts for several years.

``The entire incident came us a shock to us. Also, this kind of a fiasco is an unprecedented one in the history of Nasscom. We are looking into the matter on what steps can be taken. Considering the magnitude and implications of the incident, we can even look at banning the company from Nasscom,`` said Ganesh Natarajan, chairman of Nasscom.

The government, he said, should take appropriate steps to strengthen the corporate governance structure of Indian companies.

In fact, Ramalinga Raju had served as the chairman of Nasscom in 2006-07.

According to Natarajan, currently, the priority for the industry body will be to restore investor, analyst and employee confidence on the Indian IT sector. ``Considering that Satyam employs over 50,000 people, it is important for us to protect the interest of these associates. We have to ensure that they are not affected in the wake of a possible take over of the company in future. Besides, we also have to ensure that clients are not suffered,`` he said.

Nasscom may also take up discussions with clients and investors abroad to allay their fears on the Indian IT sector. ``This kind of an incident could also send wrong signals to investors and clients abroad. However, we believe the entire IT sector will not be impacted much as we consider this as a specific case of a particular firm,`` he said.

Satyam trouble came to haunt the IT sector while it is already reeling under the global economic slowdown. Trouble may also arise as the US is set to welcome its new democrat president. With the US accounting for over 60% of the Indian IT revenues, this kind of a fiasco may not go down well with the prospective clients and the government there.


Author: Murugan10 Jan 2009 Member Level: Gold   Points : 1

hi dear friend..

well update..

Then what is going on satyam computers ..

May be its come back or die..

now satyam computers employee not having a life., because infosys not interested to give offer for satyam peoples..

vary bad

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