Satyam to cut costs, says Murty

Satyam to cut costs, says Murty
PTI
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First Published: Thu, Feb 19 2009. 11 52 AM IST

Updated: Thu, Feb 19 2009. 11 52 AM IST
New Delhi: Satyam Computer Services Ltd on Thursday 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.
“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%) non-billable domestic and international travel,” Satyam CEO AS Murty said in an address to employees.
Also Read: AS Murty’s letter to Satyam staff (PDF)
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, office renovation.
Also Read: The Satyam Fiasco (Full Coverage)
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 expenses for the time being.
“We will maximise use of internal training facilities and instructors,” Murty said, adding “the company will also terminate lease of several rented premises to provide sizable saving.”
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First Published: Thu, Feb 19 2009. 11 52 AM IST
More Topics: Satyam | Murty | CEO | Fraud | Costs |