National Australia Bank is to put on hold plans to outsource more technology functions to troubled Indian IT services group Satyam.
The bank announced the decision in briefings with staff and 100 Satyam employees currently working on contract in Melbourne, the Australian newspaper reports, citing sources close to the company.
"It has been decided that application development and maintenance work transitioned to Satyam in 2007 and 2008 will remain unchanged," a NAB spokesman told the paper. "However, until the longer term future of Satyam becomes clearer, NAB will suspend all work currently in the early stages of transition to Satyam. This work will continue to be carried out by NAB employees.
"As the longer term future of Satyam becomes clearer in the coming months, NAB will consider whether to continue to transition this work to Satyam or another offshore supplier."
Last month Satyam had its IT outsourcing contract with US-based State Farm Insurance terminated in the wake of revelations about a $1 billion accounting fraud at the Indian firm.NAB drops Satyam from IT roster - The Australian