World Bank hires TCS to do Satyam's work, Wipro sees red

Though India's top technology outsourcer was tightlipped about the deal, a World Bank official confirmed that they have "hired TCS to do much of the IT work that Satyam used to do." TCS, the official said, had bagged much of Satyam's work through a competitive bidding process early last year.

The official, however, refused to disclose the size of the deal, saying they do not share contract details with third parties as a matter of policy.

The news sent TCS shares soaring 2.16 percent to Rs.522.80 at the Bombay Stock Exchange on Tuesday.

It may be recalled that on Monday the World Bank disclosed that it had found two Indian IT companies - Wipro and Megasoft - ineligible for doing direct business with it for a period of 4 years each, beginning June 2007 and December 2007 respectively.

The World Bank said it had found Wipro ineligible for direct contracts as it was "providing improper benefits to Bank staff," while Megasoft, the World Bank said, was barred for "participating in a joint venture with Bank staff while also conducting business with the Bank."

Earlier, in December, the World Bank said it found a third Indian IT company, Satyam Computer Services, ineligible for direct contracts for a period of eight years, effective from September 2008, on grounds of bribery, fraud and business malpractice.

The blacklisted names were made public by the World Bank on Monday in the interest of fairness and transparency. The bans, the World Bank said, were imposed with respect to its corporate procurement program. The World Bank has debarred as many as 111 companies and individuals from across the world from doing business or bidding for its projects till date.

With 3 Indian IT companies in the World Bank's blacklist, a general gloom had fallen on India's IT industry, with rumors spreading that the World Bank was specifically targeting Indian IT companies. However, the latest news indicates that the World Bank is still keen on doing business with Indian technology outsourcers that have a strong record of corporate governance and transparency.

Meanwhile, Wipro has vehemently denied that the World Bank has barred it from bidding for direct contracts because it had done something "wrong or unethical." It also urged the media to restrain themselves from comparing its case with Satyam's.