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Step 4 Implementation
• Clients are also encouraged to revisit their existing vendor management practices post
Satyam crisis
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Step 1. Business Impact Analysis
• As a first step, clients should carry out a detailed business impact analysis for the
portfolio of work executed by Satyam
• Classify projects by using a set of assessment parameters
Project Assessment Parameters
Parameters
Direct Impact on firm‘s Cash Flow High Low
Outcome: Classify projects between mission critical and low critical work
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Step 2. Risk Analysis
• As a client of Satyam, taking cognizance of the various risks elements in the current crisis is
extremely critical
• Carry out multi-level risk analysis of Satyam at firm, operational and contractual level
Risks Type of Risk Risk Description Ways to access risk
Information Security Risk Risk of losing or misuse of data, code, software etc.
Closely monitor
Operational and interact with
Employee Attrition Risk Risk of losing key personnel
the offshore project
Risk
team regularly
Quality Degradation Risk Risk of degradation in quality output
Outcome: For each project, categorize Satyam’s risk perception as Low, Medium or High
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Step 3. Solution Design
Mission Critical
Transition work
risk perception, a suitable solution to a new /
work to new /
-
Maintain
Business Impact
is selected from the available existing vendor
Status quo existing
& evaluate part
options vendor
In -sourcing
Low Critical
2) Transition work to a new/existing Maintain Maintain
to a new /
-
vendor Status quo Status quo existing
vendor
3) Transition work to a new/existing
Low Medium High
vendor & evaluate part in-
sourcing Risk Perception
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Vendor Management - Post Satyam Crisis
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For more information about this presentation,
please contact our advisors…
United States
Manuel Ravago
Email: manuel@tholons.com
Phone: +1 650 393 4001
India Philippines
Neeraj Huddar Jo-An Darlene Chua
Email: neeraj@tholons.com Email: joan@tholons.com
Phone: +91 963 201 1099 Phone: +63 917 527 2198
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