Tuesday, March 24, 2009

KRISHAM BATRA IS CORRUPT: Selective Insurance, the latest Satyam customer seeking exit

HYDERABAD: Selective Insurance Group, one of the biggest property and casualty insurers in the US is seeking to replace its outsourcing contract 
with Satyam Computer Services. 

In a report filed with Securities and Exchange Commission (SEC) last month, Branchville, New Jersey-based insurer said that Satyam accounts for almost a quarter of the company’s IT work. 

“We believe we would be able to manage an efficient transition to a new vendor and not experience a significant negative impact to ouroperations in the event that we no longer retain Satyam in their current capacity due to the financial issues they are currently experiencing,” the company said in its regulatory filing. 

As reported by ET recently, around 46 customers have either completely exited, or are in the process of moving their outsourcing contracts from Satyam to rival tech firms such as IBM, TCS, Wipro, Infosys and Accenture. 

Potential bidders for Satyam such as Tech Mahindra, L&T, Spice and several private equity firms are readying their strategy for taking over a majority stake in Satyam, and their financial bids will depend a lot upon the amount of business Satyam has from around 695 existing customers, last reported during company s financial results for quarter ended September last year. 

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