Hunton & Williams Outsourcing Attorneys Available as Sources on Satyam Accounting Scandal

NEW YORK, Jan. 8 /PRNewswire/ – As the world reacts to the revelations regarding allegedly falsified financial statements from India’s Satyam Computer Services, Ltd., attorneys from Hunton & Williams LLP’s Global Technology and Outsourcing Practice are available as sources for comment.

Hunton & Williams is ranked as the #1 outsourcing law firm in the world by Black Book of Outsourcing and the #1 privacy law firm in the world by Computerworld and serves as counsel to many Global 2000 companies regarding their outsourcing arrangements with key providers in India and elsewhere. Practice co-chairs James A. Harvey and Randall S. Parks are available for immediate comment, as well as partner Peter Brudenall of the firm’s London office. Lisa J. Sotto, partner and head of the Privacy and Information Management Practice at Hunton & Williams, is also available to comment on privacy issues raised by this situation. They offer the following initial thoughts on the implications of the Satyam matter:

Not a Death-Knell for Indian Outsourcing: “While the recent revelations raise questions regarding corporate governance at Satyam, they do not suggest that any other outsourcing vendor, whether in India or elsewhere, has similar problems. As we saw with Enron, the bad accounting practices of one company don’t necessarily taint the entire industry. Regardless, it is likely that the Indian government will react to shore up confidence in one of its leading industries with stricter corporate governance controls, as was the case following the Enron collapse.”

Satyam May Survive, Though Perhaps in a Different Form: “For years, Satyam was a highly-respected industry participant and is a valued partner for many of the largest companies in the world. There is tremendous value in those client relationships and in the accumulated knowledge of the operating units of the company. If Satyam is unable to survive on its own, there will be no lack of potential acquirers.”

Companies Must Assess Risks and Options under their Satyam Contracts: “Companies should immediately evaluate their exposure to Satyam and their options under their Satyam agreements and develop appropriate responses. Depending on the business criticality of the functions performed by Satyam, the responses may range from termination, to requests for additional contractual assurances, to ‘watchful waiting.’ In any case, companies should be making contingency plans.”

Contract Termination is Not Easy: “If a customer does decide to switch outsourcing vendors, the process is not simple or fast. Companies should be sure that switching vendors is the best move. Given the risks involved, many customers may opt to stay with Satyam, albeit with a more watchful eye on how it operates.”

Data Security and Business Continuity: “Companies that want to sit tight with Satyam should monitor the situation carefully and think about protecting key data, software and other assets and developing contingency plans for likely scenarios.”

About Hunton & Williams LLP

Hunton & Williams LLP provides legal services to corporations, financial institutions, governments and individuals, as well as to a broad array of other entities. Since our establishment more than a century ago, Hunton & Williams has grown to more than 1,000 attorneys serving clients in 100 countries from 19 offices around the world. While our practice has a strong industry focus on energy, financial services and life sciences, the depth and breadth of our experience extends to more than 100 separate practice areas, including bankruptcy and creditors rights, commercial litigation, corporate transactions and securities law, intellectual property, international and government relations, regulatory law, products liability, and privacy and information management. For additional information visit our website at www.hunton.com.

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