Giving some hope to crisis-ridden Satyam, the World Bank has said it could review the eight-year ban imposed on the company provided the software exporter takes "corrective action".
A World Bank official said Satyam has to show it has again become a responsible vendor to do business with, when asked whether the multilateral lending agency would relax the ban on the software exporter.
"The vendor would have to demonstrate (that) corrective action had been taken to address the original causes of the ... ineligibility," a World Bank official from Washington said in an emailed statement.
The official further said action should substantiate that Satyam is "again a responsible vendor with whom the Bank can do business".
The World Bank banned Satyam Computer Services for eight years in 2008 for providing "improper benefits" to Bank staff and for failing to maintain records relating to fees charged for sub-contractors.
Satyam has a strong case for a review of the ban since its old board and management have been changed after its disgraced founder Chairman B Ramalinga Raju admitted to fudging accounts to the tune of Rs 7,800 crore.
Agencies
Showing posts with label small software cos. Show all posts
Showing posts with label small software cos. Show all posts
Sunday, February 15, 2009
Did Satyam turn small software cos into bn dollar industry?
Though blamed for tainting the image of the Indian IT sector now, Satyam Computer Services was indeed the first IT firm in the country to use communication technologies to turn pygmy software companies into a billion-dollar industry.
In his latest book 'Transcending Boundaries', author Deepak Chopra said that Satyam was one of the pioneers in using satellite-based data communication, which enabled the Indian software industry to take a quantum jump in the 1990s.
Satyam, which came under the scanner after its founder B Ramalinga Raju confessed to cooking the company's account books for years, was the first Indian software company to use dedicated satellite links in 1992.
In the 1990s, IT firms suffered due to lack of high-speed data links.
"A Hyderabad-based startup, Satyam Computer Services, which had signed up its first major offshore customer in June 1991, applied to VSNL for a dedicated satellite link in August that year," the book said.
Using this link, Satyam wanted to execute a re- engineering contract, worth one million dollars, for John Deere Corporation by remotely working on Deere's IBM mainframes located in Chicago.
Following this, many other IT firms started using the dedicated satellite links.
Agencies
In his latest book 'Transcending Boundaries', author Deepak Chopra said that Satyam was one of the pioneers in using satellite-based data communication, which enabled the Indian software industry to take a quantum jump in the 1990s.
Satyam, which came under the scanner after its founder B Ramalinga Raju confessed to cooking the company's account books for years, was the first Indian software company to use dedicated satellite links in 1992.
In the 1990s, IT firms suffered due to lack of high-speed data links.
"A Hyderabad-based startup, Satyam Computer Services, which had signed up its first major offshore customer in June 1991, applied to VSNL for a dedicated satellite link in August that year," the book said.
Using this link, Satyam wanted to execute a re- engineering contract, worth one million dollars, for John Deere Corporation by remotely working on Deere's IBM mainframes located in Chicago.
Following this, many other IT firms started using the dedicated satellite links.
Agencies
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