Satyam Fiasco – The Effect It Has On You And Me

Ramalinga Raju’s recent confession on the scam at Satyam has resulted in a change of tide not just for the thousands of investors and employees, but for you and me working in different software companies.

The implication of the fiasco at Satyam has basically turned close to 50 thousand experienced professionals into job hunting populace. The experience in this group ranges from that of a fresher to that of a top level manager with 15 – 20+ years in the industry.

There are tons of people who have huge loans to payoff and some may also have dismal financial commitments. This would result in these professionals underselling themselves in the market, thus in turn change the dynamics of the cost of skilled labor.

If you were to get 25 thousand as your take home as a mid level engineer, these folks would be ready to pick up the same job for let’s say 20 thousand or maybe even 15. This would impact the already failing economical state transforming it further into a gloomier one. The Indian IT sector would lose credibility and thus this would evolve into a situation where the Chinese and Pilipinos would have more work that India should be doing.

There is a positive side to this though, with the further depreciation in the job market, our costs would reduce and thus in turn we would be fighting the cost factor against China and Philippines that has loomed around as a threat.

The lesson that we all have to learn here is, ethics and honesty is truly the best policy and no matter how smart or cleaver you are, The Truth Will Be Exposed !!!

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Copyright © Dennis D Maliekal 2009