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US insurance co transferring Satyam projects to others
Lalit K Jha in Washington | January 22, 2009 10:35 IST
State Farm Insurance, a Fortune 500 US company, which last week terminated its existing contracts with the scam-tainted Satyam [Get Quote] Computer, has now started transferring its projects to other IT vendors, including those from India.
"Satyam was one of the vendors we had. We care transferring a lot of work to other vendors and some is being handled by our own IT staff," State Farm Insurance spokesperson Jeff McCollum told PTI.
"The current uncertainties surrounding Satyam's future and potential impact to State Farm resulted in this decision," he said.
When asked if some Satyam projects are being transferred to any Indian IT companies, McCollum declined to name the companies, citing confidentiality agreement with those companies. "It should not be a surprised to you, given that most of the good vendors in this field come from India," he said.
McCollum said as of now a large number of Satyam employees are still on the project helping State Farm in this transition. This is expected to take from a week to at the most a month. This should be over in a month at the most, he added.
The State Farm Insurance, which is based in Bloomington, Illinois, had no problem with the projects being handled by the Satyam Computer. "We had incredibly good relation with Satyam in the past. We are very disappointed that this (termination of the contract) had happened," he said.
"Uncertainty involved with the company's (Satyam's) future was the only factor responsible for the termination of the contract," he added.
When asked if the State Farm would review its decision, if this uncertainty ends, given the Indian government's intervention in this regard, the spokesperson said he would not like to speculate on it at this moment.
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