Satyam CFO is now on the same list of Google top searches as Windows Beta 7 download and Stephanie Antes (a sexy stripper who the IRS is pursuing because she failed to report her tips). That tells you all you need to know about the level of concern in the IT community about the Indian outsourcer’s problems. There is a lot of worry about the impact on Satyam customers in particular, and on offshoring in general.

If you’re in an IT department with a Satyam outsourcing contract, or even if you’re not, there are some steps you should consider to inoculate yourself against the catastrophic failure of an outsourcing partner, especially in the applications area.

First, make sure you have access to your code.

Second, make sure you have access to supporting documentation related to your code.

Third, know who’s on your account.

Fourth, and possibly most importantly, review your outsourcing contract for an out. Make sure you understand your options at all times.

Perhaps the discipline of disaster recovery should be expanded to include these kinds of organizational disasters. In a world in which the benefits of globalization carry occasional unintended consequences, it makes sense to proceed with caution.

If you are reading this blog, you likely know that we specialize in assisting companies in all facets of outsourcing assistance, we can help identify, assess, plan, and execute your options. Don’t hesitate to contact me at This E-mail address is being protected from spam bots, you need JavaScript enabled to view it   even if you just need a second opinion.

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