Outsourcing is under threat when one of the big five Indian outsourcing companies is a fraud. And if you think that only the CEO is involved (as he claims) then I have a bridge to sell you. UPDATE: The CFO has gone missing as well as the CEO.
The CEO of Satyam says that the has been fraudulently restating figures for at least seven years, and after admitting to the fraud the share price has fallen by 78% in a single day. The Financial Times says that the company is in serious trouble.
This also has ramifications for Cloud Computing. If one of the biggest outsourcers can be fraudulent, what about your so-called “Cloud Computing” provider. What happens to your data if they are shuttered due to fraudulent behaviour and you can’t get your data. Satyam was a huge outsourcer, and was supposed to have been investigated by top companies who were using them.
Podango goes bust with FIVE days notice
Look at Podango – they were a “cloud computing provider” for podcasters. They announced on December 26th that they would close by December 31st. If you place your corporate accounting system with a company, no matter how large or small, what is your disaster plan if that company goes out of business on the day after Christmas.
Something to think about.