This article discusses the scandel surrounding B. Ramalinga Raju, the chairman of the Indian IT outsoursing company Satyam Computer Services. Raju sent a letter to his board and the Securities & Exchange Board of India on Jan. 7th, stating that he had inflated the amount of cash on the balance sheet for the company (the fourth largest Indian IT comany) by almost a billion dollars. This scandel is one that is very similar to what happened in America with Enron. In India, the IT industry is one of its biggest and one that is looked highly upon and frequently used by other countries (especially the U.S.). Because of this many industry observers now argue that India's reputation as a reliable provider of IT services will be permanitly damaged. "Doubts about the reliability of Indian outsourcers are especially important, since customers often allow the Indian companies access to sensitive systems" (1). This will inevetably lead many international companies to re-think their investment in the Indian IT industry, something that could severly damage the country's economy.
http://www.businessweek.com/globalbiz/content/jan2009/gb2009017_807784_page_2.htm
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