Forbes reports that Infosys could benefit from the trouble caused by Satyam. It quotes analyst's comment on the situation:
These are the areas which could benefit Infosys:
1. Satyam's case has caused a lot of apprehension and doubts for the customers on the other Indian IT companies. Infosys being a brand for corporate governance can highly benefit, if the clients keeps governance as one of the their top priority in choosing their provider. At least, Infosys need not work much to showcase their transparency. Infosys has received ten consecutive yearly awards from 'Charted Accountants of India' for 'The Best Annual Report'. On the other hand, Satyam was also awarded 'The Golden peacock award for Corporate governance 2008', the same year when it manipulated its books. It is now considered for removal.
2. Once Infosys and Satyam competed heavily for Qantas airways deal, in which Infy was desperate. But Satyam finally got the cake. Now, Qantas is in a mood to find an 'external arrangement' if the situation gets worse with Satyam. So will Infosys try this again?
3. Another big opportunity is SAP. Recently, Infosys and Satyam were jointly recognized as 'SAP Global service partners' by SAP, Germany. Notably, Enterprise solutions is a big chunk for Satyam, contributing 45% of Satyam's revenues. So, the next direct competitor is Infosys.
4. Infosys lags behind in the automobile sector when compared to Satyam. Once Satyam had reported that it has eight of the top ten automobile companies as its clients. This is one area where Infy can start looking at seriously. Also, Telecom business is an other vertical where Infosys had reported negative growth and can try to pull of some clients from Satyam. Though Satyam's telecom pie is small, it should be prospective for Infosys. Here, Telcom intensive Tech Mahindra is also after Satyam's business.
Tags: Satyam, Infosys, Qantas, Outsourcing, IT, Satyam Fraud,Satyam competitor
Thursday, January 08, 2009
Infosys to benefit from Satyam's fiasco.
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2 comments:
Infosys also releasing fake results
Not only Satyam, Infosys also doing the same. But they are managing the show very tactfully. But Infosys people are behaving like “ I am a vegetarian. How bones have come to fish body”.. First let them prove that they are true and their results are true. Then they can comment others.
Frankly, there is no effective system in place to ensure transparency. The council which gave the 'Golden peacock award for corporate governance' claims in its website that
" This is the only award, which has meticulously defined and transparent selection criteria and is determined by highly elaborate and independent assessment process."
Shareholders, Public, Board members... none of them can predict a company. It's all between Founders and Auditors.
Also,a report says 1/5th of the fortune 500 company manipulates its reports (though. the level of manipulation differs).
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