New Indian outsourcing scandal rocks Australian clients

Just weeks after revelations of fraud at Indian outsourcing giant Satyam, a second Indian outsourcing company is under pressure after being banned by the World Bank.

Just weeks after revelations of fraud at Indian outsourcing giant Satyam, a second Indian outsourcing company is under pressure after being banned by the World Bank.

The World Bank has banned Wipro Technologies from being a supplier for four years after the outsourcing giant offered World Bank employees the chance to buy shares in Wipro.

Wipro executives claim the share offer was above aboard, but the World Bank’s decision to blacklist the company could badly damage its reputation, coming so quickly after the Satyam scandal.

Wipro has a large presence in Australia and clients include Optus, ANZ, Axa, and GM Holden. One of the company’s biggest wins occurred late last year, when Wipro was awarded the contract for Origin Energy’s multi-million dollar retail transformation program, which is based on the SAP platform.

Origin says it is seeking clarification from Wipro on the matter.

Shares in the company bounced back strongly yesterday during trade on the Indian stockmarket, after Wipro assured investors that the World Bank ban would not have a material effect on its earnings.

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