Abstract
Satyam Computer Services Ltd., once one of the largest IT services companies in India, faced a catastrophic collapse that shook the entire Indian corporate world. Founded in 1987 by B. Ramalinga Raju in Hyderabad, Satyam was initially regarded as a pioneer in the Indian IT outsourcing industry, competing with global giants such as IBM, Accenture, and TCS. The company offers a range of services including consulting, software development, and business process outsourcing.
By the early 2000s, Satyam had grown rapidly and was consistently ranked among the top IT companies in India. However, the company’s success story turned tragic when in January 2009, its chairman, Ramalinga Raju, confessed to inflating the company’s accounts by over Rs. 7,000 crore (around USD 1.5 billion). This confession led to one of the largest corporate frauds in Indian history.
This case study explores the rise, the fall, and the lessons from the Satyam Computer scandal, and the broader implications for corporate governance and ethics in India.
Questions
1. What led to the downfall of Satyam Computer Services?
2. How did the Satyam scandal impact the Indian IT industry?
3. What lessons can other companies learn from the Satyam scandal?
4. How could the fraud have been prevented at Satyam?
5. What was the outcome of the Satyam scandal?