Truth prevails a Satyam
Mahindra Satyam, the erstwhile Satyam Computer Services, has bagged around 30 IT contracts, after it was taken over by telecom solutions company Tech Mahindra in April. Most of the deals won by the Hyderabad-headquartered Mahindra Satyam are in the $1 million-$20 million range from both new and existing customers. Majority of the new deals have come from Asia Pacific and Europe, specially in sectors like healthcare, utilities and retail, in the areas of enterprise applications, business intelligence and engineering services.

This is a result of the new-found confidence of the customers, who are expecting a turnaround of the company after the IT major was caught muddling with he sums of money. After former chairman B Ramalinga Raju confessed to a Rs 7,600-crore fraud, which involved falsification of Satyam’s accounts, most of its customers had put a freeze on new deals with the IT firm. What followed was large-scale client exodus, which saw companies such as Coca-Cola and State Farm Insurance walk out of their contracts with Satyam.

However, since the new management from Tech Mahindra took over, things seem to have settled down. The level of profitability of these new deals remains in the realm of speculation, as customers aggressively want lower billing rates given the current economic environment. Not a single customer left the company after April 13 – the day when Tech Mahindra was named as the suitor of Satyam, reports suggest.