Merrill Lynch is shifting a majority of its contracts from troubled Indian software firm Satyam Computer Services to rival Tata Consultancy Services, the Economic Times reports, citing "software industry sources familiar with the matter".
The ET says Merrill informed Satyam of plans to switch the bulk of its contracts to Tata after sending a team in early February to assess the situation at the crisis-stricken Indian outsourcer. The Merrill account contributed about $40 million to Satyam's yearly revenues, the newspaper says.
The news is anotther blow to Satyam, which is struggling to maintain customers following revelations of a massive accounting fraud perpetrated by its founder Ramalinga Raju.
Ohter prominent financial firms to have suspended or moved work from Satyam include Australia's NAB and US-based State Farm Insurance.Merrill Lynch to shift Satyam contracts to TCS - Economic Times