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Big clients stay on with Satyam

January 20, 2009 14:25 IST
Last Updated: January 20, 2009 14:41 IST

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Despite the uncertainty over the liquidity position of embattled Satyam Computer Services [Get Quote], big clients of the firm such as GE have said they are continuing their existing contracts with the firm.

"GE continues to use Satyam Computer Services. We have not moved any work," a GE spokesperson told PTI. GE is one of more than 650 clients working with the beleaguered IT firm.

Another client Malaysia Airlines has said, 'Satyam provides Malaysia Airlines with onsite professional services. We have been in discussions with Satyam and have been advised that the services will continue as usual.'

 In the first meeting of Satyam's newly constituted board, Deepak Parekh had said two of Satyam's global clients have vouched for the firm but declined to give further details.

Over half a dozen of Satyam Computer's rivals have started exploring ways to take over the business from its various clients, a global technology consultancy firm has said.

'Satyam is likely to see its clients as well as employees deserting it soon due to competitive wooing by rivals and top IT firms such as Infosys [Get Quote] would continue to shore up their market share,' an analyst at Forrester Research said in a report.

'Large and small clients alike will look to other suppliers they already work with as an immediate fallback position... More than half a dozen providers have already called Forrester to discuss competitive strategies for taking over business in joint accounts,' it added.

 However, the country's top IT majors such as Infosys and Wipro [Get Quote] have said they will not proactively approach clients of Satyam but made it clear that they will not say 'no' if clients approach them.

IT industry body Nasscom has also said that it will refrain from poaching employees from Satyam.

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