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Satyam has 10 percent extra staff says chairman: report
April, 18th 2009

India's fraud-hit Satyam Computer Services Ltd may have up to 10 percent excess staff, a local newspaper reported on Saturday, quoting the head of the company's government-appointed board.
Kiran Karnik told the Economic Times that 3,000 to 5,000 staff were in excess, over and above the normal 'bench' maintained at outsourcing firms.

The 'bench' refers to staff not working on any projects and is normally 10 percent of the total workforce that is usually maintained for readiness to take on new projects.

Satyam Computer was taken over by mid-sized outsourcer Tech Mahindra Ltd this week after it bid the highest for a controlling stake in the company.

Three months ago, Satyam's founder and chairman shocked investors by saying profits had been overstated for years, putting in doubt the survival of a company once ranked as India's fourth-largest software services exporter.

The Economic Times said Karnik ruled out any government intervention to protect employees.

"It is for the board to decide and that will be Tech Mahindra," Karnik was quoted as having said. "... we (the government-appointed board) are in transition mode and we should be out soon."

 

 
 
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