Satyam, the embattled ITO provider has appointed A.S. Murthy as chief executive officer. Murthy, a 15-year veteran of the organization, begins immediately.

“Extensive board discussions over the past few weeks made it clear that the new CEO should come from within,” said Satyam Board Member Deepak Parekh. “ASM, an extraordinary executive with widespread support among all stakeholders—internal and external—will do an exceptional job leading Satyam at this critical juncture.

“ASM has a deep understanding of the organization and proven management expertise; he has led a business unit, overseen global delivery, nurtured customer relationships and spearheaded the entire human resources function. Moreover, he is extremely well respected for his ability to integrate teams and foster collective decision making—critical skills as Satyam continues to revive.”

The board also appointed Homi Khusrokhan, the former Managing Director of Tata Chemicals, and Partho Datta, the former Finance Director of the Murugappa Group, as special advisors. These experienced executives will lend their expertise to Satyam’s Management and Finance areas, respectively. The special advisors, along with Boston Consulting Group, will work pro bono and help Murty and the board define and executive key strategies.

In another significant development, the board confirmed that it has secured approximately US $130 million in financing, which will be directed toward working capital requirements. The loan, along with healthy collections, will help the company manage several short-term financial challenges.