ANZ Bank reviews Satyam links
12 Jan 2009, 1142 Hrs

Add comment          Mail          Print          Write to Editor

Melbourne, Jan.12 In the wake of Hyderabad-based Satyam Computer Services' billion dollar corporate scandal, the management of ANZ Bank has announced that it will reviewing its links with the firm.

ANZ Bank has around 100 Satyam contractors who support IT projects. The bank's Indian subsidiary which employs under 2000 people, primarily uses these contractors.

Last week, the bank told its employees that it would develop a contingency plan, while admitting that its relationship with Satyam was "modest".

"The relationship involves a number of Satyam staff who support development and testing on information technology projects. This means there is no effect at all on ANZ's day to day IT operations," David Cartwright, ANZ operations, technology and shared services group managing director, said.

"(As) for the technology development projects that Satyam contract staff are supporting, we are currently assessing key person dependences and developing a plan for how we manage through the situation," Cartwright said.

"While there is some work to do on this, it's clear that we will be able to take the issues at Satyam in our stride and largely get on with business as usual given the depth of our own IT resources and our relationships with a range of IT vendors globally."

Unlike other blue-chip companies such as National Australia Bank, Telstra and Qantas, ANZ doesn't have any long-term contracts with Satyam.

Meanwhile, a majority of local customers are assessing their contractual obligations with Satyam.

A multi-million-dollar software facility being built on Deakin University's campus in Geelong is also under a cloud as the future of Satyam remains uncertain.

Satyam's world came to a crushing halt when the company's founder and chairman B. Ramalinga Raju admitted to over-inflating the value of cash and bank balances by 1.44 billion dollars. (ANI)