In Hyderabad

I am sure all of you are fully aware of whats going on in Hyderabad now.

Many lives  are clouded by uncertainty including the  53000+ global employees [  25000+ are in Hyderabad ], Hundreds of vendors that supply services to Satyam,  Tens of thousands of contract support staff from security to housekeeping to cabbies that rely on the economy that revolved around satyam and the millions of investors who have put their hard earned money into this company.

Big 3 Competition are scavenging for contracts.. Making irresponsible statements and Poaching employees while  Customers are running scared and creating fallback and business continuity plans to stabilize their critical operations back in US,  Politicians are running for cover and blaming each other,  TV Pundits are having fun with word plays on “Satyam”, “Truth” and “Lies”.. But, no one seems to be looking out for the innocent delivery teams and employees affected by this overall scam for no fault of their own.

Central government today announced that they are taking over the board of Satyam and dissolving satyam management, but thats not enough to calm the nerves of thousands of employees whose monthly house loan installments and credit card payments are due towards the end of the month.  Hope to see some strong actions on that front.

This scam will create a long lasting impact on the IT industry.. Companies will have to rethink their approach to oursourcing critical IT and BPO operations… to any one company .. or any one country..  Yes, we have solid business continuity plans to cover for network crashes, strikes and even natural calamities..  but no one ever planned for the eventuality of a service provider scam.

In a series of steps, the finance ministry is clamping down on the flow or foreign funds into the Real Estate Sector. Government firmly believes that the overseas funds are contributing to the asset bubble in India.

Recently the finance ministry barred those setting up integrated townships from raising ECB ( external commercial borrowings ) and made it difficult for small players to raise such borrowings by lowering the ceiling on the interest rates to be paid on such debts.

Today’s Finmin is proposing to impose FDI status for foreign investments in realestate pre-ipo deals. Anything falling under the FDI guideline will have a 3 year lock in period and the investor cannot withdraw before 3 years. RBI is also trying to identify ways to curb the misuse of funds, by proposing new norms to monitor the use of the funds raised for real estate investments.

Technorati : finance, india, realestate