Building a strong brand
Mr Raju, as well as the company, left no stone unturned to build the Satyam brand.
One may ask, why is the brand important in the kind of commoditised business Indian IT companies do?
It makes sense for the likes of Microsoft and Oracle, which have products out in the market, to invest in their brand - surely not Indian companies.
A strong brand comes handy in three ways.
One, it shortens the journey to the bidding table. Companies that have a strong brand are more likely to be called by prospective customers than those with lesser brands. It's quite a struggle for lesser-known companies.
Two, a strong brand helps get repeat business from the same customer. The business logic here is that getting a new customer on board is up to six times more expensive than getting an order from an existing customer. So this helps save market development costs.
It is important for IT companies to leverage its customers for another reason: most customers start by outsourcing peripheral work. Those who stay with a customer one day graduate from low-value peripheral jobs to value-added core work.
Three, a strong brand often fetches a premium over rivals. So investing in a brand is never a wasteful exercise in the IT sector. Seen from this perspective, Satyam's brand building of those days makes sense.
It wasn't just Mr Raju on his ego trip.