Contingency Planning in Wake of Satyam Scandal in India

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A webinar on the topic "Satyam - What Should You Do?" has been scheduled for January 21 as elaborated in the press release from Alsbridge and Hunton & Williams below.

The Indian government has dissolved the board of directors at Satyam Computer Services after revelations of an estimated $1 billion in fraud through accounting irregularities at this major outsourcing company in India, which has roughly 50,000 employees. Many leading multinationals have used the outsourcing services of Satyam. Pricewaterhouse was the auditor in India. This scandal is obviously a major blow to the reputation of the IT outsourcing industry in India, and reveals some of the challenges of due diligence in such relationships.

Links for this press release

Alsbridge, Inc.

Hunton & Williams LLP

Alsbridge to Host Webinar on Contingency Planning in Wake of Satyam Scandal
Firms Must Act Quickly, Wisely to Avoid Risk of Disruption to Operations

DALLAS, Jan. 9, 2009 -- Alsbridge, Inc., the leading outsourcing advisory and consulting firm, will hold a webinar "Satyam - What Should You Do?" on Wednesday, Jan. 21 at 2 PM EST (1 PM CST). Companies with concerns about offshore outsourcing are invited to attend.

In the free webinar, two of the industry's leading experts will discuss key facts about the recent financial scandal at Satyam Computer Services ("Satyam"). Factors that companies should consider in assessing outsourcing relationships will be explored and some practical alternatives to help mitigate risk will be presented. Ben Trowbridge, CEO of Alsbridge, Inc., and Jim Harvey, co-chair of the Outsourcing practice at Hunton & Williams LLP, will bring their decades of outsourcing industry business and legal experience to bear in an interactive discussion of the practical realities of recent events at Satyam.

The session will offer ample opportunities to pose questions participants might have and present a nuts-and-bolts primer on how to protect companies from current and future offshore outsourcing risks.

All participants must preregister for the webinar at

"The scandal at Satyam has prompted many companies that outsource to evaluate their agreements," said Trowbridge. He said companies should proactively evaluate their operational, financial and legal alternatives, risks, exposure and courses of action whoever their provider is.

"Evaluating outsourcing agreements and developing risk management and contingency plans are complex tasks that require specialized experience and expertise. Trying to accelerate these plans may lead to cutting corners and making mistakes that are worse than the current risk."

Offshore outsourcing clients need advice from an experienced outsourcing advisory firm "as surely as you need legal advice on your legal obligations and exposures in outsourcing contracts," Trowbridge said. "You shouldn't review your multi-million dollar contract, operational risks and contingency plans without qualified outsourcing counsel."

"Scarcely a month after the world media was flooded with news of the catastrophic terrorist attacks in Mumbai, headlines are once again rife with articles on the global impact of events in India. This time, the news has focused on Satyam, previously one of India's largest and most prestigious outsourcing providers, and a series of missteps that began in October 2008, when alarming allegations of possible involvement in a customer security breach surfaced in the media. After that news, there were allegations of misdeeds with customers, a failed takeover attempt, and now the chairman's confession of massive accounting irregularities. Companies who are currently engaged in business with Satyam should take steps to safeguard their rights and interests amid the chaotic climate," commented Harvey.

For more information on outsourcing advisory services, contact Alsbridge at 214-696-6410 or visit For more original research and insight on outsourcing topics, visit .

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About Alsbridge, Inc.

Alsbridge, Inc. is an award-winning global advisory firm, providing unparalleled expertise in information, technology and business process outsourcing, shared services, finance and accounting, and benchmarking. The firm is fact-based and client-focused, with a proven methodology that fosters success. Alsbridge defines client goals and scope, finds the best cultural fit with providers, refines the best solutions and eases transitions and implementation. Founded in 2005, Alsbridge is the proven, effective difference. For more information, visit .

Selective recent article links about the Satyam scandal and outsourcing services in India

"India's Enron", The Economist, Jan. 8, 2009
"Satyam Executives Arrested", The Financial Times, Jan. 9, 2009
About Hunton & Williams LLP

Hunton & Williams LLP provides legal services to corporations, financial institutions, governments and individuals, as well as to a broad array of other entities. Since its establishment more than a century ago, Hunton & Williams has grown to more than 1,000 attorneys serving clients in 100 countries from 19 offices around the world. While the practice has a strong industry focus on energy, financial services and life sciences, the depth and breadth of their experience extends to more than 100 separate practice areas, including bankruptcy and creditors' rights, commercial litigation, corporate transactions and securities law, intellectual property, international and government relations, regulatory law, products liability, and privacy and information management. For additional information, visit their website at .

"Upwardly mobile India fights scourge of fake CVs", The Christian Science Monitor, Oct. 8, 2008 (quotes Satyam before the scandal)
"Enduring the Subprime Tsunami", Far Eastern Economic Review, Sept 24, 2008 (quoting Satyam before the scandal broke recently)
Additional sources of news reports about business in India International Business Times - India edition
India Times, and The Economic Times
Express India and The Financial Express
Business Standard (India)
India Today

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Last modified: 12/20/10