Satyam shortlisting key staff to be retained after takeover

HYDERABAD: Satyam Computer Services has kickstarted the process of shortlisting 100 key employees, who will be retained in the beleagured firm,

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after a new owner takes management control . A new owner is expected to be in place by April 30 this year.

The retention of key employees for a year is one of the pre-requisites that a shortlisted bidder has to agree to, if he is finally selected as the owner. A senior company official is understood to be assisting a special advisor to the board and a career consulting agency to identify key employees. The government-appointed board of Satyam will have to approve the list.

A company spokesperson said: “We are not aware of any shortlisting being done by the mentioned individuals or by anyone else for that matter. It is absolutely speculative.” But a person familiar with the development had said that retention of key employees was needed for business continuity and to help the firm retain clients. Many clients have snapped ties or put Satyam on notice after the firm’s founder B Ramalinga Raju admitted to perpetrating a Rs 7,000-crore financial fraud.

“Key employees stood by the company during the crisis. While a new owner will bring his own team, the services of existing employees may be needed to help the new team in the initial phase,” the person said.

Besides, some of the key employees are also being questioned by investigating agencies probing the scam. The government-appointed Satyam board has made it clear that the new owner of the firm will have to co-operate with investigating agencies as well as the regulators.

Satyam, once ranked as the country’s fourth-largest software exporter, claimed to have had around 53,000 employees on its rolls till the end of September last year. Nearly 80% of the associates were onshore and the balance onsite employees-either in client locations or Satyam’s own offices overseas .

Its main line of businesses include providing services to segments such as telecom, infratructure, media, entertainment and semiconductor (TIMES), manufacturing, banking financial services and insurance (BFSI), retail and pharma. The employee numbers are now being validated, as concerns were raised on the actual headcount. Satyam has seen employee attrition after the scam. Kiran Karnik, chairman of the government appointed Satyam Board, was recently on record to say that employee attrition in the company was not alarming despite the prevailing situation.