Millions of investors (including Enron employees with their 401k accounts)  in United States were wiped out by the 2001 scandal of Enron.  Well, today India has experienced a similar event.  According to Reuters story , the Indian outsourcing giant was allegedly a creation of public perception based on Satyam top management’s lies.

Ramalinga Raju of Satyam

Indian’s market was sent to a tail spin closing over 7% lower, after Satyam’s stock went down in value almost 80%.   Apparently, the founder and the top “dog” of Satyam, Ramalinga Raju, admitted to a massive accounting fraud, which was surprisingly possible with an oversight of an accounting auditor -  PricewaterhouseCoopers for last few years. As to be expected, the  same people who were supposed to oversee that the books of the “pristine” outsourcing giant were cosier, have not commented as of now.

 The stock trading of Satya on NYSE in US  was also suspended till further notice.  We’ve heard a number of worrisome stories about outsourcing outfits in India and China and their questionable business practices. This one  however may force  US and EU companies to take a second look on the  very popular trend in business practices.