Globsyn's CEO on the Satyam fiasco

Mr. Bikram Dasgupta (Chairman & CEO, Globsyn Group) sharing his views on Satyam fiasco on 09.01.2009.

Part 1

Transcript Extracts:

>>This is definitely a one off case. In normal corporate governance it doesn't happen. It is indeed sad and at the same time very shocking that something like this has happened. I have an experience in this IT industry for 29 years now and we are proud to be what we are. Needless to say we are hurt due to this. It could be a warning signal for us that a little care has to be taken in whatever we do, be that growth, peer pressure etc.

>>Running a company of 50,000 people in 66 countries for a 1st generation entrepreneur coming from a middle class background is something new and it has become a tremendous success story. We all are learning everyday and there could be something wrong in the learning process in this case.

>>Credibility in the knowledge industry is very important. After this issue there is certainly a setback. We are all very concerned about it.

>>It is very premature to say anything about Satyam as of now. Cash flow is a big issue to manage. Most big companies have managed this cash flow and that’s why they have achieved the growth.

>>The investors in the market are very keen to see some action taken. To bring back the investors’ confidence there has to be some strong steps.

>>The future of the company will hugely depend on the people who are in direct contact with the client. If they have serviced the clients well then the client may continue to work with the company.

Part 2

>>Questioning the credit rating agencies, auditors or other regulatory authorities is valid. The situation itself has given rise to these questions. If the authorities can take visible action against the people in question, only then the investors will show confidence back.

>>It should be taken as a warning that has to be acknowledged. From my own experience I can share that after a certain point when the entrepreneurship company becomes corporatized and professionalized, the entrepreneur should make way for other skilled professionals in the Company.

>>We should also change our mind set that anything big is good. We should also respect the achievements of the smaller companies. Otherwise the smaller companies are coming under pressure to do something very big and in the process they may end up taking wrong paths. Concentration should be more on the bottom-line rather than the top-line.

>>If we can learn from these incidents then the future will be much brighter and year 2009 will certainly see a new beginning.

Globsyn's CEO on the Satyam fiasco