Why Blame Satyam Only?
Why Blame Satyam Only?
Satyam episode is only a part of the big horror show confronting the Indian software exports market. Poor Satyam was suddenly exposed after a series of corporate tremors that took place in quick succession. The sorry plight of other software companies may be just under wraps.
Today, in fact, most traditional Indian software companies are struggling, as they lack skills to survive in the fast-changing business environment. They’re still dependent on age-old enterprise applications that run in ancient corporate data centers. While the entire data center concept is undergoing a rapid transformation with the advent of latest technologies based on cloud computing and software-as-a-service models, Indian players have mostly failed to adopt such systems.
Plus, now the entire software development ecosystem is moving from niche to mass markets by offering ready-to-use, downloadable software apps for mobile phones, gaming consoles (video games), social networks, and so on. But there’s hardly any Indian software company that could be counted in this big league.
Now, recession has added fuel to the fire. As it’s difficult for Indian companies to operate in the recession-hit global markets (mainly U.S.A.), they’re running helter-skelter and using any means to make a fast buck. Satyam’s method was only one form.
Want to know more about Indian software scene?
Here’s a recent My Techbox Online interview with Ganesh Natarajan, chairman, NASSCOM, a big software industry association in India.
And my article (Window dressing) that I wrote a year ago for my column in The Financial Express newspaper.
Rakesh Raman
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Troubled Satyam Appoints DSP Merrill Lynch as Advisor
I think he is still lying. The fraud that he is talking about is a simple fraud which is not so easy to hide. I am sure the auditors could have easily detected this fraud. Mint has an interesting perspective. They say that based on what he’s said, it’s impossible that Satyam would be operating on such a low operating marging of 3%. Hence the only logical thing is that he has siphoned off the money and this whole thing is a charade.