IT industry veteran, David Merson, recommends Australian companies should satisfy themselves about the standards of corporate governance of the organisations from whom they commission outsourced IT services.

“Australian companies should not be dissuaded from seeking the staffing, operational and financial benefits of outsourcing but they should undertake due diligence to assure themselves of the governance and stability of their intended service providers,” he said.

He was commenting on the scandal surrounding the more than $1 billion overstatement of profit that has enveloped Indian company Satyam which provides outsourcing services to a number of major Australian companies like Qantas, Coles, NAB and Suncorp.

Mr. Merson helped found Mincom, which was arguably the biggest Australian software company until its recent sale to US interests.

Under Mr. Merson’s leadership, Mincom was a joint venture partner in the establishment of Mitrais. He is now an advisor to the board of Mitrais.

“As a joint venture we set strong standards of corporate governance which are maintained to this day under its Australian management team,” Mr. Merson said.

“To establish and maintain excellent ongoing relationships with our clients, we don’t simply rely on a near shore location, common time zone and the technical and project management skills of our staff,” says Mitrais managing director David Magson.

“We encourage all our prospects to undertake due diligence and to assure themselves of the stability – financial and operational – of our company,” he said.