BANGALORE - India's Satyam Computer Services said on Thursday it plans to put about 7,000 to 10,000 staff on virtual pool as part of the fraud-hit outsourcing firm's strategy to manage excess staff and cut costs.

The staff put on virtual pool will get part of their salary for up to six months, effective from this month, Satyam said in a statement after a board meeting in the southern city of Hyderabad. Satyam's founder and former chairman shocked investors in January by saying profits had been overstated for years, putting in doubt the survival of a company once ranked as India's fourth-largest software services exporter.

In April, Indian outsourcer Tech Mahindra won an auction for a controlling stake in Satyam, with a bid that could top $580 million depending on the outcome of an open offer that is being launched on Friday. (Reporting by Sumeet Chatterjee; Editing by John Mair)

India Mahindra Satyam