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Satyam buy to propel IBM to big Indian IT league: Forrestor
John C McCarthy, VP and Principal Analyst, Forrester Research, said If IBM is successful then it would push the company into top three in terms of size in India. “It puts them between a 1,05,000-150,000 resources, neck-and-neck with TCS and Infosys, for purely a scale point of view.“
International Business Machines (IBM) has been looking out for a stake in Satyam for the past three-four years and yesterday the company had accessed Satyam's data centre to conduct a due diligence process to take a bid forward. John C McCarthy, VP and Principal Analyst, Forrester Research, said If IBM is successful then it would push the company into top three in terms of size in India. "It puts them between a 1,05,000-150,000 resources, neck-and-neck with TCS and Infosys, for purely a scale point of view." Also read: Two bidders start due diligence on Satyam; IBM one of them Here is a verbatim transcript of the exclusive interview with John C McCarthy on CNBC-TV18. Also watch the accompanying video. Q Do you think Satyam fits the bill for IBM and it would be an aggressive bidder? A For IBM it pushes them into top three in terms of size in India. It puts them between a 1,05,000-150,000 resources, neck-and-neck with TCS and Infosys, for purely a scale point of view. More specifically it gives them a more formal informative goal, Oracle and SAP back-end delivery practice for implementation and running of those applications which clients are looking at as a very expensive line item. Q One of the biggest concerns in terms of cost of acquisition has been how large these class action suits have gotten or might get, what is your own understanding on that and how IBM might deal with that? A: I think any one of the players bidding for Satyam will have hired one or more law firms to help them assess what the risk is and figure out what their legal strategy will be dealing with those class action law suits. Obviously IBM because of size of resources is in as good a position to deal with that as anyone. I think part of the challenge would be because of IBM because of the name brand may, if they acquire Satyam and are chosen by the board, may attract it's own set of lawsuits in parallel. Yes, there is some good news here, but also bad news in terms of the liability issues.
John C McCarthy, VP and Principal Analyst, Forrester Research, said If IBM is successful then it would push the company into top three in terms of size in India. "It puts them between a 1,05,000-150,000 resources, neck-and-neck with TCS and Infosys, for purely a scale point of view."
