The Satyam Tragedy

Many of us who run clean IT businesses are no doubt reeling from the Enron-type disaster created by the fourth largest IT firm in India.  It is ironic that the name of this firm is Satyam. It is equally hard to imagine that only one individual is responsible for this mighty collapse. Raju has been brave to shield them, but it is certain that others, perhaps, even a few well placed politicians are involved. What we need is a systemic change in governance, but that is a distant dream in a society bereft with corruption.

Small to Mid-Sized businesses  who were contemplating outsourcing a function or a project, or even those seeking resource augmentation, will rightfully ask searching questions before selecting the vendor.  Credentialing is an approach that will alleviate this risk.  Simply selecting a vendor based on price will not work.  Proper credentialing verifies the IT infrastructure, staff capabilities, relevant experience, customer references, financial strength, and of course the underlying corporate governance.  Not that credentialing guarantees success – success is only achieved with diligence, technical superiority and excellence in project management.  However, credentialing is a necessary first step to eliminate companies that have gaps in Governance.

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