U.S. client (State Farm Insurance) cancels contract with fraud-hit Satyam

[UpInArms]

Source: Reuters

BANGALORE (Reuters) - Fraud-hit Satyam Computer Services Ltd (SATY.BO) said on Monday a U.S.-based client had canceled its contract, dealing a blow to the embattled Indian outsourcer caught in the country's biggest corporate scandal.

State Farm Insurance Co has terminated its contract, a Satyam spokeswoman said, confirming a report in India's Mint newspaper on Monday, but she declined to give details of the contract.

"While we are disappointed in State Farm's decision to discontinue services, our executives are reaching out to clients around the world, and at this point, well over 90 percent of our clients have committed to continuing with Satyam," she said.

The Mint newspaper said State Farm Insurance was among Satyam's biggest clients.

Read more: http://www.reuters.com/article/ousiv/idUSTRE50I12E20090119

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Maybe they could use American workers - and invest in this country's infrastructure instead of outsourcing and off-shoring.

Oh, that's right - it's just the consumer who is supposed to "buy American" - the corporations don't have to take any responsibility or ever be held accountable.

[Sherman A1]

1. Thanks for posting

Your last line says it all......

[Dr.Phool]

2. I thought I was buying American when I paid all that extortion to State Farm.

Florida homeowner insurance rates, 2 cars, a motorcycle, and piece of my federal flood insurance premium.

I'm going to start looking for another company.

[Romulox]

4. I'd NEVER insure my Toyota with a (gasp!) non-American insurer! nt

[UpInArms]

6. please note also that the "news" outsourced the writing

to Bangalore.

I am so sick and tired of trying to find anything that is really made or done in this country, and - yes, I know Reuters is a foreign news source (UK) but they did have a US branch that had reporters and journalists.

[hugo_from_TN]

12. The news is from Bangalore

Why wouldn't they have their local correspondents cover it? Sheesh.

[williesgirl]

3. We Americans should start refusing to deal w/companies who outsource our jobs. It's

tough to uncover who they all are. When I call a company's toll-free number and have difficulty understanding the person on the other end of the line, I usually will ask where they're located. When they won't tell me, then I'm sure. I've cancelled a few business relationships based on that already.

We need our jobs back in this country. Our corporations aren't paying taxes and are no longer hiring Americans. Fuck them. rec'd

[Romulox]

5. Right. I'll look for a different company to insure my Hyundai. nt

[dysfunctional press]

7. state farm is the WORST of the WORST.

when we had state farm, we were backed into by a guy who changed his mind about going thru a red-light. he was also insured by state farm. they refused to make any payout to us, since we "ran into him". the other guy had a crappy pick-up truck and no damage. our front end had over $1200 damage.

[CountAllVotes]

8. Msg. to State Farm Ins. ...

FUCK OFF !

I wouldn't have their insurance FOR FREE! I have hated this company since the early 70s when some asshole ran into my PARKED car and totaled it. They would not admit responsibility (he was insured by them) and I had to get a lawyer and sue them in order to collect damages.

I was a kid at the time, barely 21 years old.

SCREW YOU STATE FARM!

:dem:

[ChairmanAgnostic]

9. a national bar organization researched all carriers,

and found that State Farm had the worst claims handling in the country. They lie, cheat, steal, delay, deny, and mislead whenever possible.

[OhioChick]

10. I completely agree with your comment following the article.

Who else is doing/did business with Satyam? I know that a few clients are Ford, Nestle, and GE.

[OhioChick]

11. Satyam needs money to pay salaries

Satyam needs money to pay salaries

19 Jan, 2009, 1644 hrs IST,Bloomberg

NEW DELHI: Satyam Computer Services Ltd, under investigation for fraud, is in talks with banks to overcome a cash crunch that may leave the softwa
re maker without enough money to pay salaries and utility bills.

The government-appointed board is seeking funds, looking for a new chief executive officer and improving revenue collection, Satyam said in an emailed statement.

India’s fourth-largest software exporter is being probed after founder Ramalinga Raju said on January 7 he overstated profits.

“All efforts are being made to ensure that the employees are paid their salaries on time,” the company said. The board members are “in touch with key customers and so far have not heard of deliveries being affected in any way.”

http://infotech.indiatimes.com/News/Satyam_needs_money_to_pay_salaries/articleshow/4002104.cms

[Azlady]

13. I love your comment Upinarms

"Oh, that's right - it's just the consumer who is supposed to "buy American" - the corporations don't have to take any responsibility or ever be held accountable".

Perfectly put, thank you.

[UpInArms]

14. thanks Azlady

I'm just weary of attempting to buy, use, consume only things made, grown and built in this country - mostly with very little success as it seems everything that I pick up comes from somewhere else - can anyone tell me why we can't have California, Texas or Florida oranges in the grocery stores? (I can only find those grown in Australia - and how does that work to anyone's advantage except the freakin' shipping companies - not to mention the fuel used to transport it across the world)?

[ChromeFoundry]

15. Since they canceled this contract

what other country can they go to to get this work done at rock bottom prices? You know I have heard that there isn't any talent here in the U.S. anymore.

:sarcasm:

[OhioChick]

16. CIGNA Spokesman: Satyam Computer Events Affecting Us

CIGNA Spokesman: Satyam Computer Events Affecting Us

BANGALORE (Dow Jones)--U.S.-based health insurer CIGNA Corp. (CI) Thursday said that it is being affected by the revelations of accounting fraud and subsequent probes into India's Satyam Computer Services Ltd. (500376.BY), one of its vendors for technology outsourcing.

http://online.wsj.com/article/BT-CO-20090121-719578.html

[lonestarnot]

17. Screw State Farm!

[semillama]

18. It'd be good for them to use US workers

Still, I'm keeping my State Farm coverage. I've been covered by them since I started driving, and they've always had my back. I caused an accident once and they didn't raise my rates, and I've always liked my agents (my old hometown agent is now a Democratic State Representative).