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INDIA BUSINESS WORLD - 1st FEBRUARY - TO - 15th FEBRUARY- 2009
CISCO REVIEWS SATYAM JV
NETWORKING major Cisco is "reevaluating" its joint venture with Satyam. Satyam and Cisco had announced a JV to focus on healthcare management solutions in October 2007. Cisco has made over $1.2-billion investments in India and has grown its employee base to 5,000, over the past 2 years. This also includes Cisco’s plans to invest over $100 million to incubate new technologies in areas such as healthcare solutions in the country.
"We are re-evaluating our options. The JV with Satyam is under review," said Cisco Services chief globalisation officer and EVP Wim Elfrink. He did not comment on whether they were exploring alternative relationships with other Indian IT vendors on this. Later Cisco issued an official statement saying, "We have full confidence in the government and regulatory authorities who are handling this matter. We do not expect the situation to have any material impact for Cisco. As any prudent company, we are evaluating appropriate risk mitigation strategies. Cisco's primary aim is to see the continued delivery of services from the Satyam team to enable us to meet our business requirements."
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