April 22, 2024

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‘Salvaging Satyam Computer Services is Nasscom’s finest hour’

‘Salvaging Satyam Computer Services is Nasscom’s finest hour’

The National Association of Software and Services Companies (Nasscom) says startups will play a big role in India’s journey to becoming a $5-trillion economy.

Addressing a fireside chat on ‘Unleashing the Maverick Mindset’ at the TiE Global Summit on Tuesday, Nasscom Chairman Krishnan Ramanujam said the startup ecosystem is estimated to create a $200-billion economy by 2027.

After 30 years, the country’s IT industry stands at $227 billion.

Ramanujam said the potential of startups was so huge that they reached the level achieved by IT industry in far less time.

On the journey of the IT industry in the country, he said it had shown that fierce competitors could come together and help the sector grow.

“IT also proved that industry associations can collaborate and talk with the government without compromising on ethics,” he said.

Recovering from a scandal

He said Nasscom played a key role in resolving the 2009 crisis involving Satyam Computer Services and rebuilding trust.

Recalling the days immediately following the outbreak of the Satyam crisis, Harish Mehta, Chairman of Onward Technologies and the author of the book Maverick Effect, said the initial opinion among the association’s leaders was that it was an issue to be dealt with by the company.

“Then there was an argument that it could impact the country’s reputation. Mission-critical applications for over 500 clients would be in jeopardy. Then we decided to address the issue,” he said.

“We talked to the Prime Minister and SEBI. Can we keep Satyam alive for a month or two? A meeting was held on how to do this before the government takes over,” he said.

The collective wisdom of the CEOs of Nasscom and the decision to sacrifice short-term gains helped the industry ensure the company’s survival for some time. “It is the finest hour of Nasscom,” he said.