Commenting on the magnitude of the Satyam scam, Mohandas Pai, Head-HR Administration, Infosys, said, he had never imagined something of this proportion would happen. “It is a bad day for corporate India and IT industry. He feels that the auditing process should get more rigorous and that all companies should make sure that bank balance confirmation goes directly to auditors.

Pai feels outsourcing clients will take a more cautious approach now and people having large exposure to outsourcing will consolidate and work to minimise the risk, he added.

“Investors will be very worried and this is critical time for company and thus management has to be changed for company to protect careers of their employees',.”  Pai said. Clients will ask for more information; as Satyam fraud is an aberration with deliberate malicious intent. As far as the FII flows are concerned, there will be an impact, but it will be more selective. 

According to Pai, independent directors not knowing about the fraud is quite credible, as they know if they are engaged in the same, the criminal liabilities could come to them.

He feels it is good to have regulator and the government set up its team to investigate – come out with a set of things to be done and the auditing process should get more rigorous.

However, according to Pai, the more worrisome thing as of now is what happens to the 50,000 people, because they are innocent people working in the company and there will be a change in the management team. Probably new people will be appointed by the shareholders and the new management team will work to protect the carriers of all the 50,000 people. "A new team has to come in place and take charge immediately and the regulators have to step in to tell the new team to run the business, while they investigate this fraud."