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Q How has the Satyam episode affected PwC’s business and credibility in India?
I would not say that there has been a loss of credibility. PwC is still a very strong brand. But, yes, we have been suffering from some perception problem. Having said that, I must add that this is mostly outsiders’ perception. People who do business with or had done business with us still have very high opinion about us. People who do business with us know that a fraud of this nature is not easy to pick up. Mind you, we haven’t lost audit clients because of Satyam. We have of course taken a lesson or two from the episode and are trying to turn this crisis into opportunity by strengthening and fine-tuning our Indian operations.
Q What is the way forward? How are you planning to come out of this?
We are revamping our operations across all line of services in India. India is an extremely important market for us. It’s a vibrant economy and is becoming more complex. We are keen on latching on to this opportunity. On one hand, we are clearing negative perceptions in some quarters. On the other, we are building audit infrastructure and improving quality. We are ensuring that our audit practice is more robust.
Q What about the staff. Any initiatives for them?
We are proud to have such loyal staff, who have rallied behind the firm in the hour of crisis. We have undertaken a lot of HR activities to keep the workforce motivated and will do everything possible to retain talent.
Q High attrition has been a major issue for the firm recently. What are you doing about that?
Not really. An attrition rate of 15-20 per cent is something we can live with. Our rate has never been higher than that. When I say that, I cautiously differentiate the departure of RSM partners from other exodus. Significantly, some RSM partners stayed back along with a few clients.
Q You took over RSM is the firm you took over few years ago amid much fanfare ...
Yes. But somehow we realised it was not working out well for us. There are many reasons for that.
Q You acquired another firm, Eicher Consulting. Would you say the something about that?
On Eicher Consulting acquisition, I would say that it has been worthwhile for us because we could integrate our business in all areas. Simply because the RSM takeover did not work out, we are not closing our doors. We are looking at all forms of growth.
Q You need right manpower to pursue this growth path…
Yes. Our current head count is little over 6,400. I would like it to grow to over 10,000 over the next two to three years. We have plans to double the head count at our shared services location in Kolkata. Our global leadership has already given us go-ahead to work towards a cross border co-ownership or cluster approach. We are looking at several networks — the US, Canada, China and Australia — for co-ownership of practices. We are not talking about years, but months when this new structure will come into place.
Q In the 135 years of history in India, PwC has had only one election for all practical purposes. Once your terms ends in May next year would you like the firm to go for yet another election to pick its chairman?
I was actually elected through a proper sounding by partners. When the formal election took place it was only one candidate that the partners had voted for. That certainly is one option here also. Let’s see if we could arrive at a consensus on this.
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