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Fall from grace: Satyam founder Ramalinga Raju, while Accenture and IBM look to profit from the scandal

Multinationals may be Satyam winners

Bill Condie
13 Jan 2009


Accenture and IBM could be winners from the massive fraud at Indian outsourcing firm Satyam.

Companies seeking to outsource operations such as handling customer calls or testing software may turn to the multinational firms due to worries about working with smaller Indian companies.

But Indian computer services company Infosys Technologies, which unveiled a 33% third-quarter profit rise today, also expects to benefit.

Infosys chief executive Kris Gopalakrishnan said he may win more orders off customers defecting from Satyam, whose chairman Ramalinga Raju was arrested on charges of cooking the books. Raju is said to have admitted falsifying accounts for years to the tune of $1 billion (£666.8 million).

Infosys net profits rose to 16.4 billion rupees (£226.5 million) in the three months to December.

Shares in Satyam fell 1.7% today in Mumbai after a 44% rise yesterday on hopes a government-appointed board will rescue the company.

Delhi has been forced to act in the wake of scandal. One option could be a government or private sector bailout.

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