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Tuesday, 13 January 2009 10:44

Vultures swoop on Satyam customers

Written by Nick Farell

Image

IBM and Accenture turn to poachers


IBM and Accenture
are looking to take Satyam Computer Services customers away from the beleaguered company. According to Bloomberg, the pair are targeting companies that want to outsource some of their operations and would naturally go to Satyam.

Moshe Katri, an analyst at Cowen said that US companies may no longer trust Indian outfits and IBM and Accenture are the two largest U.S. computer-services providers. Katri told Bloomberg that the Satyam crisis is going to create a temporary or near-term crisis of confidence in the sector. He added that this is really the first time this has happened in the IT industry.

Karl Keirstead, an analyst at Kaufman, said that Satyam gives other US and Europe-based companies another reason to be hesitant before sending business to an emerging market.

Dhruv Chopra, of Morgan Stanley said Satyam’s clients are most likely to shift their business to other companies they already work with. However IBM and Accenture could potentially pick up share as they already work with a significant number of Satyam’s clients.

Nick Farell

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