Home > business, india > Satyam suspends capex, to move staff to low-cost countries

Satyam suspends capex, to move staff to low-cost countries

Originally reported on Moneycontrol

AS Murthy, CEO of Satyam Computer Services, wrote to the company’s employees to announce a number of measures, in a bid to clamp down on costs.

The tech firm has been reeling under an acute cash crunch after the admission of the Rs 7,000-crore scam by its founder and erstwhile chief B Ramalinga Raju.

The measures:

1. Pre-sales, delivery support and operations support personnel to be located in low cost countries
2. All capital expansion plans of the company, unless required to meet customer deliveries to be put on hold.
3. All units to reduce domestic and international travel by 60%. Business class travel for executives to be suspended until further notice.

To continue reading, here is the article link

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  1. km
    February 21, 2009 at 3:03 am

    @Rajesh: I agree that these measures would have a positive impact on the status of Satyam in the market.
    But I just wonder, if the new team heading the affairs is in a position to take some tough decisions if the time comes to that.

    Thanks for leaving a comment.

  2. Rajesh Ohri
    February 19, 2009 at 5:01 pm

    This is indeed good news. By taking such thought through steps the company is sending out strong signals that lay-offs will be the last option for the company’s survival. These steps will enhance employee motivation and ensure that more such prudent steps are taken to overcome the current crisis.

    Satyam as an organization has maintained a very stable image even in the face of this crisis. The company has done well to hold itself together and try and put together steps which lead towards recovery. I am sure a number of other firms would have ceased to exist totally. Atleast in Satyam’s case it will continue to exist maybe under a different name.

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