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Satyam Computers' Corporate Governance Fiasco (F): Tech Mahindra Logs into Satyam



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Code : GOV0040

Year :
2009

Industry : Business Law, Governance and Ethics

Region : India

Teaching Note: Available

Structured Assignment : Available

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Introduction:
At the end of 2008, Satyam Computer Services Pvt. Ltd. (Satyam), was the fourth largest Information Technology (IT) company in India – following TCS, Infosys andWipro – serving 185 Fortune 500 clients inmore than 60 countries. Founded in June 1987 byB.RamalingaRaju (Ramalinga Raju) along with his kin D. Venkata Satyanarayana Raju (D.V.S. Raju), the firm started operations with a 20-member teamin Hyderabad, the capital city of the South Indian state ofAndhra Pradesh. Satyamembarked on its growth to success when it got its first offshore software contract in June 1991 from John Deere&Co., Illinois, a US-based Fortune 500 company engaged inmanufacturing tractors. By the end of 2000, the firmupgraded itself in compliancewith international standards and became a preferred software provider for big corporate bodies across the globe. Its headcount reached 10,000 and it received ‘NationalHRDAward’fromthe Indian government,while Dataquest magazine named Ramalinga Raju as the ‘IT Man of the Year’ for 2000.

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Since the dawn of the new millennium, Satyam witnessed tremendous growth and underwent a rapid change transforming itself into one of the major players in Indian IT industry. It launched Satyam BPO in Hyderabad in 2000 and conducted the first ever Customer Summit to educate the world about the benefits of outsourcing and its future prospects...

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