A. Saye Sekhar
HYDERABAD: What pushed out Satyam Computer Services Ltd. (SCSL) from the ‘front office modernisation plan’ of all branches of Life Insurance Corporation (LIC) of India? Sources in the insurance giant said that LIC had laid a condition that anybody to be considered for giving the proof of concept explaining their competency to take up the project should have “clean balance sheet” for three consecutive years.
Fidelity raises stake
With former chairman B. Ramalinga Raju himself declaring that the accounts were fudged in his confession statement, Satyam obviously lost out in the race. Interestingly, LIC, which owned about four per cent stake in Satyam, preferred L&T Infotech to be in the race along with Indian IT giants TCS, Infosys and Wipro.
In an interesting development, Fidelity Management and Research LLC increased its stake in Satyam to 10.17 per cent by purchasing 18.27 lakh shares, emerging as the second largest stakeholder in the company after L&T.
Meanwhile, half the employees who were on the project of State Farm Insurance, which terminated its contract with Satyam, had already left to join the competing vendors (IT companies) who are also working on the project.
While all the 180 associates having H1-B visas working in the U.S. had moved over to other vendors, 40 out of the remaining 220 on-site associates with L1 visas have agreed to return to Satyam in India (offshore).
The 180 staffers have resigned and joined other vendors like HTC and Patni Computers back home, for they cannot get L1 visa until they completed one year in offshore assignments.