It was a day of drama, question of integrity, fraud and a cacophony all across the business giants. The confession from Mr. Raju has not only soiled his own company’s reputation but I guess its going to bring rest of the Indian IT companies under microscope by the International Clients.
Everyone might say it’s an isolated case but coming years are sure to have additional regulatory measures from International Clients on IT companies from India. I am just perplexed how this inflated fraud-cash-bubble sustained for so long. One would wonder what was SEBI and auditors doing all the while? It’s not wrong to be greedy to become number 1 company, but it’s absolutely unacceptable to be number 1 leaving morals to the wind.
The “Trust” factor on Indian IT Hub is at stake now. Will this incident shy away the investors from our IT hub and look for alternatives best possibly to our competitors? Not sure. We have seen in the past, industries failing when Integrity and Governance fail. It’s a fresh lesson leant hard way for everyone on how strong the corporate governance should be in the industry now.
On top of all this, it’s the trauma each of this company’s employee undergoing and regretting to be associated with the company. We were not expecting much of economic recession in India unlike other countries mainly due to low cost services. But this incident could possibly lead us into a recession kind of state if investors to give second thought on investing in Indian companies.
This is the time our government should ensure that no such incident repeats to save our IT hub from ignominy.