« Satyam Scam a reflection on Services Business ?

I am sure by now all of you know about the Satyam scam and how the companies management was involved in a massive $2 billion scam. But one of the most important thing which this complete scam has brought out is the dwindling margins on the IT Services Business. Satyam as per Raju only operated on a 3% margin. Now this 3% margin can be a reflection of the gross mis-management of Satyam or simply put bitter reality of the services business. Lets leave Infosys, Wipro & TCS aside as I believe that customers might be paying them a premium for who they are which is essentially translating to the high margin.

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