Tuesday,17 March 2009,
Bangalore: Beleaguered Satyam Computers is losing its customer base as around 46 customers have shifted their outsourcing contracts to rival firms such as TCS, Wipro, IBM and Accenture, after the scandal hit hard the company. Most recently, Abu Dhabi Bank has moved out of Satyam and shifted its contract to 3I Infotech, reported The Economic Times.
As most of the clients seek to mitigate the operational risks by working with more stable vendors, customers such as Applied Materials, Kansas State Bank, Telstra, Emerson, Nissan, State Farm Insurance and Sony apart from dozens others have either moved out their projects, or are about to approach other outsourcing vendors.
Companies such as Tech Mahindra, L&T, Spice and iGate are eying at a majority stake in Satyam, while their financial bids will depend upon the amount of business Satyam has from its existing customers. "We are waiting for details on the number of customers existing at Satyam, and the revenue visibility there," said a senior executive at one of the tech firms preparing to bid for a majority stake of Satyam.
According to industry experts who requested anonymity, outsourcing contracts worth anywhere between $350-$500 million are up for renewal by Satyam customers this year, making it critical for the company to ensure that none of these contracts go to a rival firm such as TCS, Wipro and Infosys.
Meanwhile, in some cases vendors are ready to accept contracts from Satyam customers at less than 25 percent, including transition costs.
Siliconindia news bureau
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