Business Week
January 09, 2009
"Satyam's U.S. Clients Face Tough Choices"
by Moira Herbst
Pace Harmon Partner Steve Martin discusses the impact of the Satyam financial scandal on the company's U.S. customer base. "Some companies are in better shape to handle the process than others. Best-practices companies do a good job documenting business knowledge. Those who don't won't have an orderly or efficient transfer."…"The question is, is Satyam a one-off situation of poor management and judgment? Or is there something systematically wrong with auditing and controls in India? If it's a case of poor controls, I think you have the chance for a massive reorientation of the outsourcing market." Martin says he foresees more companies using a mix of outsourcers so they don't become too dependent on any single firm. He also suggests that companies adopt contingency plans, as other crisis situations will likely arise. "You have to anticipate events like these will happen again," says Martin. "Companies [that outsource] need to keep good documentation to protect themselves."
Pace Harmon’s insights regarding technology trends, complex transactions, and supplier management issues are frequently quoted in leading industry journals.
