Indian Outsoucer Satyam Cooks the Books, Enron Level of Fraud

India has been importing U.S. jobs for some time. It appears they imported another American corporate problem, fraud.

Indian offshore outsourcer, Satyam Computer Services, admits to falsifying books:

The chairman of India’s Satyam Computer Services resigned on Wednesday after confessing to fixing the IT outsourcing company’s books for the past “several” years, the country’s first major fraud case to emerge following the global financial crisis.

In a letter to Satyam’s board, B Ramalinga Raju admitted wildly inflating Satyam’s margins to paint a picture of good performance and retain his management position, in one of the worst scams to have hit India’s outsourcing sector.

How bad is it? Looks like a reported 24% profit margin is actually 3%.

In CBS Market Watch they ask Is Satyam fraud 'India's Enron'?

Angel Broking analyst Harit Shah dubbed Satyam "India's 'Enron'", adding Satyam's misrepresentation constituted "one of the biggest-ever frauds in Indian corporate history.

Reuters

His problems were compounded last month when the World Bank barred Satyam from business, citing "improper benefits" given to Bank officials. Satyam has demanded the World Bank retract those comments.

But nothing prepared investors for Raju's stunning revelation of years of inflated profits based on non-existent assets. He acknowledged no other board member had been aware of the financial irregularities, and insisted he had not profited from the company's inflated results

In the New York Times piece it is noted that Satyam Computer Services has over 1/3 of U.S. Fortune 500 companies as customers with their labor arbitraging contracts, including the United States Government

Anyone want to tell me why we have federal dollars going to an Indian offshore outsourcing firm?

Satyam has been under close scrutiny in recent months, after an October report that the company had been banned from World Bank contracts for installing spy software on some World Bank computers

Oh even better, they pay an Indian offshore outsourcer to install spyware on the World banks computers? Did they install spyware on U.S. Federal Government computers???

Here's something most amusing, Satyam in Sanskrit means truth.

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We lie to get the job

See Time at http://www.time.com/time/magazine/article/0,9171,878265,00.html

Any American educator who feels harried by student protests might consider the state of learning at some schools in India. When a proctor at Satna College in Madhya Pradesh complained that students were copying examination answers from their textbooks, the students staged a minor riot. At Mainpuri a proctor who caught students cribbing was hacked to death with knives. In Gorakhpur, a high school student brought his homicidal Alsatian dog to bare his fangs at any teacher who tried to interfere with his right to cheat.

Or consider this at http://numen.wordpress.com/2007/08/03/you-americans-are-too-honest/

“You Americans are too honest”

I was chatting with “Slim” a few desks down from me yesterday. A few months ago there were 90 of us contract programmers and analysts here in one room, and now there are only ten, and we will all soon be gone. The guestworkers from India are all calling around looking for new jobs.

My friend Slim was helping “Rajiv”, the guy who sits in the row in front of us, when Raj got a call from a recruiter, and Raj was claiming all sorts of skillsets that Slim knew he couldn’t do. So Slim asked Raj, “Why are you telling them that?” And Raj said, “You Americans are too honest. We lie to get the job, and when we get there, we help each other out. And if none of us there know how to do it, then we just move on to the next job.”

When I got to this gig, 90 of us came here in the course of a few weeks, and only two of us were Americans. Now, of the few who are left, most are Americans, because we didn’t lie about what we could do. But the “Powers That Be” had to try to hire at least two guestworkers who couldn’t do the job before they would break down and hire an American who could.

And that’s how the game works.

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as ugly as your comment sounds

I believe the statistics back you up, at least on the number of forged resumes and credentials and in other countries it's really difficult to verify resumes.

that said, I believe the statistics on American resumes also shows huge lies too.

So, while maybe you are honest or maybe honesty and ethics is supposed to be an engineering trait, don't assume that applies to your neighbor! One thing seems certain, ethics in the Scientific and Technical fields is declining, but then very obviously ethics in business management seems to be non-existent!

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Differences in culture

That cause problems should never be described as ugly or racism- they just are, and without a melting pot culture, we have no way left of rectifying the problem.

In times past, the liars would have been blacklisted, and then asked to prove skills *before* employment.

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Maximum jobs, not maximum profits.

Satyam insider trading on top of Enron level fraud

sold stock 6 months before fraud discovered

Ok, so we have them trying to put spyware on the world bank computers, same with Indian offshore outsourcing firm Wipro, massive fraud beyond Enron and now this.

Guess who has offshore outsourcing contracts with these guys, our government and GM. GM outsourced DESIGN to these people!

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