Indias Satyam Computer Services has received a technology outsourcing contract worth as much as USD 15mn from a government agency in Qatar as part of the Middle Eastern countrys preparations for the world cup soccer games in 2022, people familiar with the matter said. While the contract value from Aspire is small, it is still a vote of confidence for the Indian software services company which is recovering from one of Indias biggest corporate scandals. In January 2009, Satyam plunged into turmoil after its founder and then chairman B Ramalinga Raju confessed to overstating the companys profits for years using a fictitious cash balance of more than USD 1bn.
In the fallout of the scandal of 2009, many of Satyams clients departed, leaving the Hyderabad-based company struggling to generate revenue. Satyams client base dropped to 350 at the end of last fiscal year which ended March 31, from 500 a year earlier.
Satyam received a contract to operate overseas development (software) centers and other technology services, one of the people told Dow Jones Newswires.
Aspire has been tasked with preparations of the FIFA World Cup in 2022. The contract requires Satyam to operate at least two software development centers in India and involves setting up a data recovery center, the first person said. The technology work is being done in phases and Satyam has been awarded the first phase, said this person.
Once Indias fourth-largest software exporter by sales, Satyam hadnt been able to take advantage of the strong rebound in demand for outsourcing services which its rivals have been able to cash in on because of the scandal that tarnished its reputation. Late last year however, the Hyderabad-based company became eligible to bid for several deals that required the firm to declare financial details after it reported quarterly results last November for the first time since reporting July-September 2008 earnings.