MUMBAI: Ever since the Satyam scam broke out, the computer software and services major has been facing a nagging fear of losing out its key clients, both old and new ones.
In the first few weeks itself, a few of the smaller clients, which did not have mission critical projects riding on them, moved out. However, larger clients had to hold, though they put Satyam on the watch list.
Seven months down the line, with a new promoter group and management in place, the IT company is not only trying to reclaim its lost glory but also their clients which are falling out at a fast pace.
Till the end of this fiscal, nearly 23 of its clients who had outsourced its business processes to Satyam contributing nearly $70 million up to December last, had terminated their services, in addition, 19 customers accounting for $22 million withdrew their business, while 24 others withdrew purchase orders valued at $91 million, spread over the next 12 months. In April 2009, Venturebay Consultants, a subsidiary controlled by Tech Mahindra emerged as the new promoter acquiring a controlling stake in Satyam, and renamed the company Mahindra Satyam after which client attrition was expected to stop.
But within a short time , three of its top US-based clients, Agilent Tech, Lowe’s Companies, along with a banking sector client Euronet Worldwide, terminated their contracts with Satyam. A week ago Satyam announced that it had bagged a mega five-year deal with GlaxoSmith- Kline (GSK), one of its top-10 clients, serviced for over 7 years in the past.
The new management said that it was going all out to keep its existing clients intact and even reclaim lost ones.
Mahindra Satyam’s chief marketing officer, T Hari opined that, as of date the initial sense of insecurity and uncertainties that existing customers had has gone away.
Mahindra Satyam still has a lot of ground to clear.