Although Satyam is stabilising its situation following the multi-million dollar fraud uncovered there, Gartner believes that, by 2010, the company is unlikely to exist in its current form.
Despite the fact that the Indian outsourcing giant is stablising its position, Gartner analyst Frances Karamouzis believes that, by 2010, it will be unlikely to continue in all its current locations, or field all of its current offerings.
In a detailed Q&A, Karamouzis says that Satyam has taken steps to secure its client engagements, while the Indian government has taken swift and visible action which clearly indicates support for Satyam and its clients.
Clients report that they haven't experienced disruptions or service degradation, while payroll has been met.
However, in hte longer-term, Karamouzis thinks that, by 2010, Satyam will probably drop its name, be acquired or will undergo a change in ownership, organisational structure of investement.
"Gartner believes Satyam's ability to sign new clients during 2009 is significantly diminished," she says. "In addition, it will be challenged to invest in client engagements, staff developments or R&D – all critical elements for IT services."
Satyam has about 690 global customers, including 185 Fortune 500 companies. It's top 10 customers contribute about one-third of its revenue.
Gartner doesn't believe the Satyam incident will affect offshoring or outsourcing an any significant way, but companies are asking some questions about Indian vendors and the Indian regulatory environment.
The analyst firm doesn't believe the incident is an outright indicator of widespread corporate government issues within the Indian offshoring industry, and it's unlikely to have a long-term adverse financial effect on the industry.