Satyam brand could have taken a beating over the last few days but the fact remains that this is one company that Hyderabad identifies with. Satyam, here, is king. HNN reports
It’s the best ‘status statement’ in Hyderabad, a Satyam identity card, that is. If a bunch of friends from the IT sector are dining out, the one with a Satyam I-card comes in the most handy to get the best discount on the bill. The waiter in his wisdom, more often than not, clubs the remaining IT firms as “other’’ companies.
The I-card gets you the best discounts on jewellery and even clothing. Call it a matter of local perception or respect for this homegrown IT major, but Satyam from the local Hyderabadi’s eye is a notch above any other IT firm, national or international.
So, while brand Satyam or ‘Satchyam’ as ‘mana’ Hyderabadis like to call it may have taken a beating with the developments over the last two weeks, the fact remains that this continues to be one firm that gave Hyderabad its very first IT identity.
Ask Bontha Murthy who still vividly remembers getting that appointment letter from Satyam eight years ago. “There were no other big IT companies in Hyderabad then. People in AP knew only one IT firm and that was Satyam,’’ he says, recollecting how the news of him getting a job in Satyam spread like wild fire among friends and relatives. “Satyam was the face of IT then. If you said you were an IT professional, people would spontaneously ask ‘Satyam?’,’’ remembers Murthy, who now works with a multinational. He says that even in the job market Satyam on the resume added great weight. “People took you seriously... knew that you have worked with clients on some good projects,’’ he says.
Satyam’s clout in Hyderabad and AP is a revelation of sorts for people who come to the city from various parts of the country. “Coming from Bangalore, I somehow never thought that Satyam would enjoy better popularity than the other three majors— Wipro, TCS, Infosys. After all, look at the way the other three firms shaped up over the years in comparison to Satyam. But in Hyderabad these reality checks do not matter. Satyam is king here,’’ says Prakash Dixit, who remembers fielding curious and even angry questions from his Hyderabadi friends when he had declined a Satyam offer.
“For any Hyderabadi it was an honour to be associated with Satyam. The firm stood for job security and in many ways it was like getting a government job,’’ says a Satyam employee.
After all, as Rakshita Swami, a systems analyst puts it: “Satyam gave Hyderabad its IT hub image. They were probably the pioneers in making Hyderabad the brand it is today. I think the city’s brand image has now received a blow.’’
Locals employed in the IT sector admit that Satyam’s popularity is more about ‘perception’ than what the reality is. But they do admit that Hyderabadis have a huge emotional connect with Ramalinga Raju’s company.
“It is a homegrown company, after all. It is like how Kannadigas feel proud of Infosys in Bangalore, in Hyderabad you feel proud of Satyam,’’ says S P Nambiar, who has lived in Hyderabad all his life and talks about the family pressure on him for joining Satyam when he entered the IT industry. Entrepreneur Ravi Mundoli adds, “Satyam at one time was a sensation, the most familiar face of the city and the possibility of it being involved in all this is disturbing.’’
A top management comprising largely of people hailing from the state, Satyam has maintained its local flavour even as other firms with cosmopolitan managements set shop here. Satyam’s involvement with various government activities is too looked upon as a homegrown empire aiding the state.
“It is certainly an emotional setback for the locals to see the Rajus go through this,’’ says an IT executive who started her career with Satyam. She adds that even now while most people understand that Satyam’s bid to acquire Maytas wasn’t correct, they feel that the company and the Rajus would bounce back.
“Satyam was our pride that we carried wherever we went. On many occasions, during our assignments abroad, people would associate Hyderabad with Satyam. So it wasn’t just our local fondness for this company but even what it gave us in return. The company gave Hyderabad prominence on the country’s map,’’ says software engineer S Naagesh Reddy.
SATYAM STAFF DEMORALISED
With the change of Satyam’s management imminent, the IT major’s office corridors are buzzing with employees talking about moving jobs and speculating on the changes the new management would bring with it.
Work has almost come to a standstill at Satyam offices in the city with employees hanging around near tea and coffee vending machines, discussing media reports on their top management and figuring out what can still hold them to this IT major. “People are demotivated. Spirits are low. But then they are also realising that their loyalties are with Satyam and not the Rajus. And Satyam continues to be a good company to be with,’’ a senior manager told TOI. Satyam has 52,865 employees on its rolls.
WHAT IS SRSR HOLDINGS?
Did the Rajus have a long range exit plan out of Satyam ? In September 2006, over two years ago the promoters of Satyam Computer Services formed a holding company called SRSR Holdings Pvt Limited and transferred all their shares to this entity. This accounted for 8.5 per cent of the shares of Satyam. The four promoters of the company were founder of Satyam Ramalinga Raju, his brother and cofounder Rama Raju and their respectives wives Nandini Raju and Radha Raju.
According to a company statement at that time these transfer of shares were executed through a block deal of 1.95 crore Satyam shares on NSE at a price of Rs 809 per share. Even at that time there was speculation that this Raju move was a prelude to their exiting Satyam. This was however steadfastly denied by them at that time and they contended it was just an easy way to handle their scattered holdings.
But now it is clear that the family shares were consolidated so that they could be pledged to institutional investors - in return for loans. In fact the pledgings happened simultaneously with the formation of SRSR Holdings. It is these shares that have now been sold off by the institutions, leaving the Rajus without any stake whatsoever in the company that is synonymous with their name.
While some employees are being encouraged to blog their solidarity with the company, there are others that this newspaper spoke to who have intensified their job hunt, floating their resumes through the day and calling up old friends/contacts in other firms for referrals. But many senior associates are taking stock of the situation, understanding how would this change of management affect them.
The management change will alter the way the company functions, employees fear. The speculated takeover by another IT firm has left Satyam employees speculating whether a ‘new’ resource pool would replace the existing one. “The axe is hanging on many employees now especially those who are on bench as the new management may prefer their trained teams to handle internal projects,’’ said a Satyam employee.
Employees also fear that if a change of management leads to dumping some not-soprofitable projects, it would in turn jeopardise their retention chances. Also, if the new management does not renew the existing projects, it could result in more lay-offs, they fear.
While optimistic employees hold that the current controversy over company ownership cannot affect them, the new recruits or those not very old in Satyam echo that they may not continue here for long. “I am now regretting my decision to opt for Satyam out of various choices I had. That I still have my job is secondary. I think its the brand that has taken a beating and this is working against our spirit,’’ a freshman says.
But a senior manager with the firm says that the company stopped laying off two weeks ago, ever since the Maytas acquisition bid backfired. “Besides, the projects are on and the customer profile is still very high. The company is not running out of projects, just yet,’’ he said.
However, what is pinching Satyam’s bunch of new employees is the bond they agreed to sign before joining the firm. As per the bond, the company stands to claim the Rs 2 lakh that they deposited as security money, in case they leave the company before completing two years. “I am in a total fix. If I resign now, I lose my bond money. If I am laid off, I won’t get a job in near future,’’ said a techie who joined Satyam a year ago.
“What the company is going through is definitely a cause of concern for us employees. We are curious, apprehensive and bothered about what is happening. But the job market is so low that we have no option but to be patient and wait and watch,’’ an employee summed up.
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