This will bring stability to the company and create a sense of trust among the employees".

He added, however, that this "still does not solve the basic problem of Satyam and that is getting the books cleared, liabilities issue, and customer retention".

Aparup Sengupta, MD and CEO, Aegis, said: "We have expressed our desire to the board to acquire the BPO operations of Satyam Computer Services, but the board has not replied to us. I do not want to comment on the appointment as I do not know A S Murty. However, the advantage, will be that since he is from within he will have a knowledge about operations."

But problems persist: Lack of clarity on Satyam is already taking a toll on the company's stock, with the scrip falling the third consecutive day. Today's fall was almost 8 per cent down to close at Rs 46.25 on the Bombay Stock Exchange (BSE) after news that the National Australia Bank has decided to suspend new outsourcing contracts awarded to Satyam, a spokeswoman for Australia's largest lender told Reuters.

Satyam continued to work with NAB on existing engagements, she said. Last month, Satyam said US-based State Farm Automobile Insurance had terminated its outsourcing contract.

Source: Business Standard