Tech Mahindra's [ Get Quote ] acquisition of Satyam Computer Services [ Get Quote ], according to an internal survey, has helped in restoring the confidence of the latter's clients, many of whom were thinking of terminating their ties with the fraud-hit IT firm.
About 80 per cent of clients have resumed normal business now, while about half of them were earlier seriously considering whether or not to go ahead, it appears.
While the company's finanical accounts are yet to be officially restated, Tech Mahindra officials have publicly stated that Satyam's business had almost halved, to around $1.3 billion. Analysts, meanwhile, had cautioned that clients may not renew their contracts with Satyam.
The situation changed after Tech Mahindra won the acquisition bid and bought a 31 per cent stake in the company, besides declaring an open offer for an additional 20 per cent stake.
"As part of our Operation Phoenix (named after the mythical bird which rises from its own ashes every time it dies), we conducted a survey on 400 clients globally, both regular customers and those who were in a wait-and-watch mode, between April 13 - the day when Tech Mahindra was announced the highest bidder to take over Satyam - and May 20.
"The idea was to get to know the clients' perspective on what the acquisition would bring about, and 80 per cent of them responded positively and have resumed normal business with us," a Satyam spokesperson told Business Standard.
Satyam had about 600 clients, including General Electric, Cisco Systems, General Motors [ Images ], Nestle [ Get Quote ], Nissan [ Images ] and Quantas Airways. It reportedly lost a tenth of these after the Jnauary 7 revelation by its founder-head, Ramalinga Raju [ Images ], that he had cooked the company's books for years.