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Satyam founder and chairman quit on wednesday

8 January 2009 859 supporters No Comment

Founder and chairman B. Ramalinga Ramu’s quick departure sends customers scrambling to evaluate how the company’s financial fraud will impact their own IT operations.

Satyam customers need to move swiftly in evaluating how the Indian outsourcer’s newly revealed financial fraud will impact their own IT operations, say analysts.

In a bombshell disclosure, Satyam founder and chairman B. Ramalinga Ramu quit on Wednesday, admitting in a five-page resignation letter that the company had been meticulously inflating its financial figures for years.

India’s biggest corporate scandal in memory hammered Satyam’s shares, which had already been under pressure since last month. The stock fell more than 80% on Wednesday, leaving the company worth around $500 million, against nearer $7 billion just six months ago

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