Satyam managers struggle to retain customer base

PUNE: Senior managers of beleaguered software major Satyam Computer Services Limited are in a fix as their efforts to retain the company's customer base have been seriously affected, owing to lack of Forex, air travel, visas and carry world money (CWM) cards.

"We are hoping that the new board members will revive the company," a senior company officer told TOI. "However, our task is becoming more difficult with each passing day. We are unable to cater to customer demands from onsite projects (ongoing projects abroad) for want of visas, air tickets, Forex and CWM cards."

He said that none of the company's branch offices in India uses cash transactions to book air tickets or for Forex (foreign currency). Annual contracts with Forex dealers and travel vendors are carried out by the company's head office, which settles these bills after the travel proposal is sanctioned by the project heads at various branches.

"Hitherto, no one refused to supply Forex or book air tickets once I mailed them the order. However, since last week, our contractors have stopped giving us credit and are demanding previous dues. I have not been able to send a single person onsite and all those who are onsite, are stranded," the officer said.

The same is the case with vendors appointed to get the visas processed from the consulates. "The vendors have simply refused to process our papers and get the visas stamped," he said.

Another officer pointed out that several scheduled trips, which were critical for onsite work, have been postponed indefinitely. "Clients are mailing us every day asking when the new manpower will be sent and we are unable to answer them," he said.

The problem is further compounded with onsite manpower running out of cash. Every employee sent abroad for onsite projects is provided with a CWM (carry world money) card. The company puts the money in the card account from India and the employees are able to withdraw the same onsite to pay for lodging, travel and hotel bills and other office work-related expenses.

"CWM cards are getting depleted. Onsite salaries, which are made every fortnight, have still to be disbursed. The employees are worried as not all have reserves," the officer said.

"It has become impossible for them to focus on the project and satisfy the demands of the clients."

He said that the issue has been brought to the notice of the "existing top brass" and they have promised that they will deal with it. "They have been promising to take action for the last one week and the clients are getting agitated," said the officer.

"The issue is not just about the non-payment of salaries, the possible attrition or about the competition poaching our clients. The liquidity crunch affecting critical air travel and transactions of Forex and CWM cards will alone ruin our onsite customer base," he added.

Be prepared, advises Gartner Inc

Pune: The move by the Satyam management to mail the latest Gartner Inc report to the staff in Pune on Thursday has sent jitters through the management here.

"Gartner's report is considered the last word by most of us in the IT sector. In this report, they have said that the Satyam customers, as a contingency measure, should consider assessing the ability of other service providers to take over the projects run by Satyam," a senior Satyam officer said.

Headquartered in Stamford, USA, Gartner is one of the world's leading information technology research and advisory companies, and provides technology-related insights to its customers.

The report, released by Gartner Inc in two parts - January 9 and 12 - also warns Satyam customers that there is a possibility of staff and management attrition and that they should be prepared to mitigate service disruption.

"Gartner has advised our customers to opt for various alternatives, including contract re-negotiations, exploring the exit clauses in the contract and opt for alternative service providers," the officer said.

Gartner has asserted that the Satyam scandal will have limited financial impact within the Indian IT industry and that such cases rarely occur among other large Indian service providers. "But, for all of us at Satyam, this report is a strong indication that our client base may erode very fast," the officer said.