Satyam Signs 15 Contracts

Amidst recent troubles, Satyam Computer Services Ltd. has signed 15 outsourcing contracts, including the renewal of existing pacts, in January, Archana Muthappa, Satyam spokesperson told Dow Jones Newswires in an e-mail today.

A Satyam spokeswoman, asking that her name not be used, told AFP international news agency, the clients were from the United States, Europe, Japan, the Middle East and Africa.

AFP also reports that the clients were won in January after the fraud scandal broke. The spokeswoman told AFP the new clients were mid-sized companies, but declined to specify their annual revenues.

The U.S.-based clients were said to be in the insurance and pharmaceutical sectors, while two other clients were from Europe in the chemicals manufacturing and services businesses, she said. The names of the companies were not disclosed.

This could be a turning point for Satyam, as it has seen its share of negative news coverage throughout January, starting with turmoil following revelations by founder B. Ramalinga Raju that he had overstated profits over several years and created a fictitious cash balance of more than $1 billion.

Price Waterhouse, PricewaterhouseCoopers LLP’s Indian affiliate, audited Satyam's financial statements from June 2000 through Sept. 30, 2008. And, according to Bloomberg.com, Price Waterhouse said two partners—Srinivas Talluri and S. Gopalakrishnan—were remanded to judicial custody on charges of “conspiracy and co- participation.

As reported in Insurance Networking News on January 23, insurers such as State Farm and CIGNA have already taken action to salvage various operations under Satyam’s control. Meanwhile, competitors such as Alliance are coming forward with various offerings to help the insurance and other industries manage through the uncertainty.