Satyam recalls 1,500 onsite staff as clients call off contracts

New Delhi: As clients
canceled contracts with troubled Satyam computers, more than 1,500
employees of the company working overseas have been called back to
India. Followed by Rs. 7,800 crore scam in Satyam, many foreign clients
have terminated their contract with the company, reported The Economic
Times.









window.google_render_ad();
<a
href='http://siliconindian.com/adserver/adclick.php?n=a9bb7037'
target='_blank'></a>







About 170 employees who were working for State Farm Insurance, an
Illinois-based insurance company, have already returned to Satyam
headquarters in Hyderabad, as State Farm Insurance terminated the
contract with Satyam. Most of the employees were technical and support
staff that were involved in delivery management and support. "The
disengagement took place in an abrupt manner. Satyam staffers were not
allowed to access the computers and their belongings after termination
of the contract," said a Satyam executive.

According to the company executive, some other larger clients such as
Philadelphia-based Cigna Corporation, Melbourne-based Telstra,
Sydney-based Qantas airlines and Atlanta-based Coca-Cola have also
started disengaging from the company, resulting in over 1,500 employee
redundancies across Satyam's onshore operations in the U.S. and Asia
Pacific. Satyam finds more than $300 million revenue from these four
clients.

Indicating further cost-cutting measures in future, another senior
executive of Satyam said that there would be a lot of restructuring as
business overseas has been severely impacted and hence workforce
rationalization is definitely on the cards. "Investments in training
and development and infrastructure will be brought down significantly,"
executive added.

Employees, concerned over the future, have started to approach various
employee organizations to resolve the problem. For instance, UNITES, an
organization working for the rights of IT employees has received
several queries from Satyam employees based in U.S., UK and Japan about
how they should go about finding a solution to the current crisis.












#loadin2{position:absolute; left: 175px; top: 1200px;z-index:20; width:300px;background-color:#F2F2F2;display:none;
border-color:#999999;border-style:solid;border-width:1px;padding-top:10px;padding-bottom:10px;padding-left:25px;
}
#examples1{ border-color:#E6E6E6;border-style:solid;border-width:1px;height:20px; vertical-align:middle;clear:both;padding-top:5px;padding-bottom:5px;}
#incomments{padding-left:10px;padding-top:5px;position:absolute;clip:rect(0px 0px 0px 0px);}
#cmntsouter{height:0px;}