Sources indicate that IT companies who already have cost cutting on their radar may not want to leverage on the skilled employees base coming from Satyam, even if the clients persist. This is because it will add up to the already existing cost of employees. IT companies have already reduced hiring drastically in the last quarter and a similar trend is expected to continue. At the other end, sources indicate some companies are backing up on the current unfavorable situation of Satyam that will ultimately drive clients to take up new vendors without these employees. However, according to a corporate lawyer, under the clause Transfer of Undertaking (Protection of Employees) TUPE- employment regulation 2006, which is applicable in UK, IT firms may be forced to take Satyam employees in UK if the client asks so. Similar regulations are applicable in other European cities. There are no such regulations in India and therefore IT companies can refuse to take up a deal in such a scenario. Satyam has 237 accounts that spend more than $1 million annually with the company and 52 accounts that spend more than $10 million.
A partner with a consulting firm that looks after the international business indicates that some companies might be hesitant to take these employees because of various investigation processes being undertaken in Satyam. The level of investigation is unknown at the moment and no one knows from where did everything started, he adds. At the same time the large IT vendors have taken up a mutual decision of not poaching Satyam employees on ethical grounds. On the other hand onsite employees in various IT companies who are expected to wrap up and come back to India, are being forced to train clients employees.