Wednesday, January 7, 2009

Satyam Computer Services Admits Fraud

Indian mega company, Satyam Computer Services admitted to hugely inflating its earnings and assets for years. The news of this company, who serves more than one third of Fortune 500 companies, threw Indian markets in turmoil. According to The New York Times, the chairman of the company admitted that 50.4 billion rupees, or $1.04 billion, of the 53.6 billion rupees in cash and bank loans the company listed in assets for its second quarter, which ended in September, were nonexistent.

Because of Satyam's relationship with major Fortune 500 companies, this news will drastically impact the business of outsourcing to India. But just how much? We'll wait and see.

What do you think will be the ripple effects of this fraud? Comment here or on LinkedIn.

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