Satyam to exercise cost-cutting, relocate onsite staff

New Delhi: Satyam Computers today announced cost-cutting measures including relocating onsite support staff to tide over the current financial crisis in the company and meet the challenges posed by the global economic slowdown.
Satyam CEO A S Murthy said in an address to employees, “I am asking for your help to reduce, avoid or defer operational expenses wherever and whenever possible” adding, “Once our situation eases and conditions allow, we will revert to normal practices.”
Services suspended include limousine service, business class travel, hotel stays for associates in cities where Satyam has guest houses,and car services for intra-city conveyance. “As a policy, the pre-sales, solution architect, delivery and operational support personnel will be located in the low-cost countries. All units have to sharply reduce by more than 60 per cent non-billable domestic and international travel,” he told the associates.
The company has also put a freeze on expenses relating to internal issues. “All capital expenditures, unless required to meet customer deliveries, are being suspended till further notice. This includes renewal of laptops and office renovation. These measures are necessitated not just because of our financial situation but are relevant given the larger economic slowdown,”he said.
The company has suspended external training as well as the advertising and marketing co-lateral expenses for the time being.
“We will maximise the use of internal training facilities and instructors,” Murthy said, adding that the company will also terminate the lease of several rented premises to provide sizable saving.