World Bank shows the EXIT door to Satyam Computers

Recently there were lot of rumors in the market regarding Satyam Computers and World Bank deal. This topic motivated me to create this blog to make an analysis on this rumors. I hope this blog will not stop @ this topic.

About the deal

June 2003:
World Bank made a deal with Satyam Computers for a period of 3-5 years, where the bank will outsource $10 million worth of application development to the Hyderabad based IT firm every year
The World Bank-Satyam Offshore Development Center in Chennai was started with 150 dedicated staff strength, which is considered on par with 110 World Bank country offices around the world. According to the deal, Satyam delivered ERP,Java & .Net solutions(i.e. Extend Document Management and Integrated Messaging System) and the contract is for offshore services with provision for onsite projects.

Reason for the termination of the deal

Major breach of the bank's treasury network in Washington was discovered in April 2008. The World Bank's Treasury manages $70 billion in assets for 25 clients including the central banks of some countries. It carries out substantial collaborations with the world's finance ministers on public wealth and debt management, runs an active bond-trading desk in Washington, and does everything from currency trading to capital markets financings.

After a forensic analysis of the treasury breach, bank investigators discovered that spy software was covertly installed on workstations inside the bank's Washington headquarters, by one or more contractors from Satyam Computer Services.

The software installed operates through a method known as keystroke logging enables every character typed on a keyboard to be transmitted to a unknown location via the Internet.

Once this was discovered, World bank officials immediately shut off all the links between Washington and Chennai, where Satayam use to operate the bank;s sole offshore computer center, which is said to be responsible for all financial and human resources information

Satyam is banned from any future projects with the bank.
This was the statements commented by World Bank Senior Executive “I want them off the premises now," -Zoellick.

After the termination

Satyam Computers comments that the story was wrong and was riddled with falsehoods and errors. “The story cites misinformation from unattributed sources and leaked e-mails that are taken out of context,” .
“Like other public and private institutions, the World Bank has repeatedly experienced hacking attacks on its computer systems and is constantly updating its security to defeat these,”.

Satyam has lost its brand value. Future of Satyam with this kind of reputation cannot be assured. It might loose many other existing clients and will be a difficult task to attract new clients. Considering the present industry scenario, Satyam might get more worst compared to the other IT firms


The information in the blog might not be true. This is analysis of information collected from many sources and news articles