Australian telecom giant Telstra has reportedly dropped outsourcing partner Satyam Computer Services from an applications support contract. The contract amount is expected to be 32 million Aus dollar annually. According to a Melbourne based media report published today (17th March), the fraud-hit Indian outsourcing firm's IT contracts with Telstra will be passed on to EDS,

 

However, the report said that, Telstra refused to comment on the report of dumping Satyam. The media also reported that, new Satyam Chief Executive A S Murty is understood to have flown to Australia last week in a last-ditch bid to retain the Telstra contract. The beleaguered Indian IT company placed a compelling case to continue with Telstra, the report added.

 

It is believed that the recent fraud at Satyam have led to the fallout with Telstra. But a source close to the deal denied that the IT firm's scandal was responsible for Telstra's decision to tear up its contract.  The decision was taken by a Telstra advisory board, which was advised by a US tender management company, sources said.