NEW YORK (Bloomberg) — Bermuda-based global business consultancy giant Accenture Ltd. and International Business Machines Corp. are in a stronger position to win new contracts after the fraud at Satyam Computer Services Ltd. tarnished the credibility of India's outsourcing industry.

Companies seeking to outsource some of their operations — such as handling customer calls or testing software — may turn to US firms in the short term as they grow wary of the risks of working with smaller companies abroad, said Moshe Katri, an analyst at Cowen and Co. IBM and Accenture are the two largest computer-services providers.

"It's going to create a temporary or near-term crisis of confidence in the sector," said Katri, who is based in New York. "This is really the first time this has happened in our industry."

Satyam chairman Ramalinga Raju's admission that he fabricated $1 billion in cash and assets will force India to strengthen corporate-governance rules or risk undermining an industry that took a decade to develop, Katri said. Satyam, based in Hyderabad, writes software and manages computer systems for clients including ArcelorMittal, the world's largest steelmaker, and Nissan Motor Co., Japan's third-biggest carmaker.

"This to some extent pollutes the entire industry, just gives other US and Europe-based companies another reason to be hesitant before sending business to an emerging market," said Karl Keirstead, an analyst at Kaufman Bros. in New York. "It's the last thing the Indian outsourcing industry needs."

Raju, 54, and his younger brother Rama were detained January 9 on charges of forgery, breach of trust and criminal conspiracy. Indian Trade Minister Kamal Nath said the government may provide financial aid to safeguard jobs. Satyam, the nation's fourth-largest software exporter, employs about 53,000 people and has offices including in Australia, Brazil, the UK and US

Satyam's clients are most likely to shift their business to other companies they already work with, said Dhruv Chopra, an analyst at Morgan Stanley in New York. That process will take time because outsourcing projects are often complex, especially if they involve people rather than technology, he said.

"In the near term, the likes of IBM and Accenture could potentially pick up share as companies go through their own due diligence," Chopra said. IBM and Accenture probably already work with a significant number of Satyam's clients, he said.

Indian software providers are likely to face heightened scrutiny as a result of the developments at Satyam, Infosys Technologies Ltd., chief executive officer S. Gopalakrishnan said in a Bloomberg television interview.

"In the short term there would be concerns, there would be requests for increased disclosures or questions about corporate governance practices," he said. "Companies who can answer those, who'd be able to meet the expectations", would do well, Gopalakrishnan said.