Satyam – it’s hilarious

Not only is it hilarious – it’s absolutely deserved. Any Australian company (think Qantas, Telstra, NAB etc.) that finds itself caught up in this scandal deserves all they get.

For almost a decade now, they have been rushing headlong into the "lowest cost" outsourcing model – without appreciating the "risks". In the same way that some banks have been caught lending money without regard to "risk", some large Australian companies have been signing up "outsourcing vendors" with little regard to "risk".

Or more significantly, without appropriate "due diligence". Blind Freddy could have told them about the "risk" and the issues associated with screwing their suppliers until only a few desperados were left in the game.

So now these companies are totally stuffed – they have shed all their smart, capable and experienced people (because they cost too much) and have handed over their business systems to a company that is likely to go down the tube – because it’s executives have falsified the books. And they think that we ought to let them keep "playing the game"?

Does anyone in these large companies actually understand the words "risk" and "dumb"?

No I thought not – as I said earlier it’s hilarious.