0		Satyam, means, ‘truth’, sanskrit, LOL

I wanted to make fun of the name but come to think of it, its not that funny. Because a  lot is at stake. At the same time it is not a matter to take things too seriously and make sweeping statements like the whole Indian outsourcing industry is in danger.

There were frauds and scams  earlier also in several different countries. Politicians commit frauds and siphon off several funds. The truth is, the world has lived on. There was Enron, there was WorldCom. 25 banks went bankrupt in US just last year. 158 year old investment bank Lehman Brothers went bust last year.

$50+ billion Madoff scam was unveiled last year. Did all these incidents stop people from investing in the US? I guess not. The ‘irrational exuberance’ which started 2008 still exists in 2009. The only difference is - it is subdued.

If Enron saw a new legislation in the form of Sarbanes-Oxley (SOX) regulation coming up, the events of 2008 will see some new laws and practices come up. We take notice, learn from the mistakes and move on.

If that is the way US is operating, why should India be any different? The thing in questions is ‘corporate governance’ and not ‘Indian corporate governance’. So please stop making sweeping statements that every Indian should be ashamed.

Because, it is just an act of one or a bunch of individuals and does not reflect the whole country. If there is something which can come out of this - it is a better corporate governance. Every company will check and re-check their numbers before they publish them. That is all there is to the story.

Even Satyam’s website has separated the actions of Raju from that of the company. So the scam is not committed by Satyam but by Ramalinga Raju the individual.

I am not well positioned to advise foreign investors about their investment strategies but the Satyam episode should not decide your investment strategy in India.

The truth which I am talking about in the title is this : Satyam is a just another software company in this country. Any events that happen to a particular company should not decide the fate of the whole country. Finally, everyone is innocent until proven guilty.

Dont’ panic. Just like everything else this will pass us by. And yes - our MBA students have one more home grown case study.

PS : India got its Enron. What else can you ask for?