We're committed to IT, BPO biz: Satyam writes to staff

After the resignation of three independent directors, and the Maytas fiasco, Satyam has written a letter to all employees to boost the sagging morale. The letter starts by summarizing that the company continues to be committed to the IT and the BPO business.

Here is a verbatim transcript of Raja Rajeshwari’s comments on CNBC-TV18. Also watch the accompanying video.

We have a copy of the letter that Ramalinga Raju, the Chairman of the company has sent to his employees. The last letter that he sent on December 18 and the successive U-turn, has led to a lot of low moral within the company. We keep seeing press reports coming in, that there is low moral there and also the senior management and most of their project leaders these days are aggressively looking out for job outside.

The letter starts by summarizing that there are two issues they continue to be committed to the IT and the BPO business. They have said that “The decision was formed with the belief that doing so would not imperil our leadership in our core business or lessen our commitment to our core business and that all stakeholders would benefit. Satyam did not and does not now intend to retreat from the IT and the BPO services in anyway and going forward it will focus exclusively on these markets.”

They have also said in this letter that they have been in talks with most of the clients and have been able to get the support of the clients. They say that, “We have been communicating these facts to our customers and I am very pleased to report that customers continue to show a high level of trust in Satyam. The key steps taken to regain their confidence are we are strengthening the board by changing its size and composition, and engaging DSP ML to provide strategic advice and options. The board will meet on January 10 to consider these options and to chart out a course of action that would boost stakeholders' confidence further.”

They come and urge that the board and the leadership team, is doing everything possible to bring back the respectability and continue to bring stability to the business. He says that, “I asked for your continued faith in Satyam and for your steadfast focus on your customers especially in phases of wild speculation and unchecked rumour.” So over the past few days we have seen some kind of stability returning. We saw Aberdeen come and say that for them very important thing right now is a stability of the business and this letter is just a start of them trying to restore this faith into their employees.

Here is the text of the letter by Ramalinga Raju to the employees of Satyam.