One of the biggest issues the outsourcing industry is facing is a major case of the jitters. Despite the natural advantages of outsourcing - cost-cutting, headcount reduction and ability to refocus on core competencies - offering a major positive in troubled times, firms are naturally suspicious of each other, knowing that financial stability cannot be taken for granted.
With this in mind, the recent events at Indian outsourcing provider Satyam could not have come at a worse time. Satyam is struggling to maintain customers following revelations of a billion-dollar accounting fraud perpetrated by its founder Ramalinga Raju, which came to light at the beginning of January when he admitted, in a letter to the Bombay Stock Exchange, that he had been cooking the books for years.
