Mahindra Satyam CEO on the road to recovery

Mahindra Satyam CEO on the road to recovery

Summary: Interview: C P Gurnani discusses the rocky path to reviving Satyam's fortunes...

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TOPICS: Tech Industry
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...making progress in dealing with the fallout from the scandal in the US, Mahindra Satyam delisted its American Depositary Receipts from the New York Stock Exchange in October 2010 as it expected to miss a deadline to file financial statements compliant with the US accounting standards. But Gurnani says it is negotiating with the US Securities and Exchange Commission (SEC) to be relisted.

Mahindra Satyam also recently agreed to pay $10m to the SEC, as part of a settlement relating to the accounting fraud perpetrated by the company's former management.

Staffing numbers at the firm are also on the up, following a period where the workforce shrank by more than 10,000 people.

Gurnani said the company headcount now stands at about 30,000 and it is hiring about 8,000 staff.

"We are happy we rightsized because that was how we were able to bring the company back into financial health," Gurnani said.

The company has reached a point where staff turnover is approaching the Indian outsourcing industry average, according to Gurnani, with an attrition rate of 20 per cent.

"We are working hard to continue to give the employees confidence that Mahindra Satyam is the most exciting place to work," he said.

However, while Satyam is expanding its base of operations in India - with new facilities in Chennai, Hyderabad and other locales - Rachael Stormonth, senior vice president at BPO analyst firm NelsonHall, said the scale of Mahindra Satyam's delivery centres outside India did not match that of the top four Indian suppliers.

The future for Mahindra Satyam

With the staffing and customer loss that followed the Raju scandal having passed and the accounting clean-up now out of the way, Gurnani believes Mahindra Satyam is once again in a position to become a major force in the Indian IT market.

"We believe we will be a dominating player in telecom, healthcare, manufacturing, retail and public services," he said.

However, Mahindra Satyam faces a significant challenge if it wants to...

Topic: Tech Industry

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Nick Heath is chief reporter for TechRepublic UK. He writes about the technology that IT-decision makers need to know about, and the latest happenings in the European tech scene.

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