India Outsourcer Satyam Implodes as Fraud Disclosed

B Ramaling Raju, chairman of Satyam Computer, has resigned after admitting revenue and profits for the Indian outsourcing company were inflated. Satyam’s stock plunged, auditor PriceWaterhouse faces questions and Merrill Lynch dropped advisory services. Satyam provided IT services to Cisco and more than 650 companies. Shares of Indian IT outsourcing company Satyam Computers plunged nearly 80 percent after its chairman admitted he had inflated the company’s revenue by 33 percent and profits by 10 times