In a state where no one seems to be ready to touch the diseased Satyam following Ramalinga Raju’s confession regarding the Satyam scam, something needs to be done to prevent the Satyam effect of having its impact on the Indian economy. Satyam which employees close to a 53,000 employees, is indeed one big company and it does not matter if the Satyam founder and Board members may have messed up, the company needs to be rescued.

Swaminathan Iyer in his column on Economic Times feels that someone of the stature of Narayaan Murthy is needed to salvage the sinking ship of Satyam. While speaking to TV channels Narayan Murthy has publicly said that, ‘Infosys would never touch an infected company like Satyam and taking over Satyam would mean taking over law suits and legal claims.‘

Swaminathan Iyer though goes on to say :

The stock market has given an indication of this expectation already . The shares of TCS, Infosys and Wipro have shot up, in the expectation that Satyam will go bust and its existing business will migrate to its top three rivals. Some analysts think that the com pany can be saved if the government guarantees new bank credit to Satyam. That will enable the company to pay salaries till such time as the company’s books are fully investigated . Other analysts think the company can be taken over by the government and broken into small er pieces for sale. However, Satyam’s problems are so deep that the company looks like collapsing, so there might soon be nothing left to be bro ken up and sold in pieces.

This is why the company needs a new chief with an unimpeachable reputation for integrity. Some analysts want Narayana Murthy and Azim Premji of Wipro to advise the company, or become directors. I do not think that will be enough. Satyam already had several eminent independent directors on its board, and yet, these failed dismally to stop the scam The company needs not just a new board but also a new management.

So, Satyam needs Narayana Murthy or Premji as CEO. Premji is not available, since he is already running Wipro. But Murthy retired as CEO of Infosys many years ago, and is now its mentor and ambassador at large. That is an important and valuable role. But rescuing Satyam would be a bigger and more fruitful role.

Cynics will say it does not matter if Satyam goes bust, since much of its business and staff will ultimately get redistributed to other Indian companies. But meanwhile much business will be lost, and many employee families will suffer tragedies. It is better to save the ship than just salvage something from the wreckage.

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