NAB cancels project with Satyam; 100 emp at risk

Melbourne, Feb 5: Satyam Computers will be losing another massive outsourcing project from the National Australia Bank (NAB). Executives of the Bank have decided to cancel the second phase of the project, ITO Wave 2 signed with the fraud-hit Satyam Computers.

The project that was given a green signal on last Nov will be put on too much risk if it continued to give the second phase of ITO Wave 2 to Satyam, Australian IT quoted NAB technology services general manager Craig Bright as saying.

NAB, in a separate briefing to its staff and Satyam employees at at Melbourne"s Telstra Dome, announced the decision on Thursday, Feb 5 sources close to the company said.

With this decision, working visas of 100 Satyam employees would be revoked.

The Bank has already retrenched 50 employees, primarily contractors, as part of the early stages of ITO Wave 2, and had previously scheduled another round of redundancies in March.

The bank has also decided not to sever the ITO Wave 1 outsourcing arrangement with Satyam that is offering support and maintenance of key technology functions.

However, it"s understood that NAB executives are considering ways to stop dealing with Satyam altogether, and either bring the technology functions back in-house or outsource them to another firm.

OneIndia News (With inputs from Agencies)