Mahindra Satyam pulls out of A$75 million university project in Australia
11 Sep 2009
Satyam Computer Services, the infamous information technology services provider now renamed Mahindra Satyam, has pulled out of a Victorian government-backed A$75 million project to build a software hub at Deakin University campus near Geelong in Australia.
Pointing out to the ongoing global financial crisis and the extensive restructuring being carried out in the company after the new owners, Mahindra Group, took control of the company in June, (See: Satyam is now Mahindra Satyam), it said that it was difficult to go in for new expanded projects at the current time.
According to Australian newspaper, Geelong Advertiser, in a letter written to John Lenders, the Victorian state government's IT minister, by Mahindra Satyam's corporate affairs president Sujit Bakshi wrote, "The need to concentrate on an extensive internal restructuring program of our business precludes Mahindra Satyam from embarking on expansion projects of this kind.
"While Mahindra Satyam is disappointed that it cannot proceed with the centre, it reaffirms its commitment to future expansion in Victoria when circumstances allow."
Baksi also said in the letter that Mahindra Satyam is committed to returning the grant money given by the Victorian state government to set up the IT hub in Geelong.
Although the size of the grant was never disclosed, according to the Australian media, the amount could be in tens of millions of Australian dollars.
